| Publication type: | Working paper – expertise – study |
| Title: | Social responsibility in the time of uncertainty : a natural experiment |
| Authors: | Mahmoud, Ola Meyer, Julia |
| et. al: | No |
| DOI: | 10.2139/ssrn.3774995 |
| Extent: | 50 |
| Issue Date: | 1-Feb-2021 |
| Publisher / Ed. Institution: | SSRN |
| ISSN: | 1556-5068 |
| Language: | English |
| Subjects: | Social responsibility; Social preference; Uncertainty; Affect heuristic |
| Subject (DDC): | 332.6: Investment |
| Abstract: | This paper studies social responsibility in the financial market under uncertainty. Using the COVID-19 induced stock market crash as a natural experiment, we present causal evidence for a significant market-wide increase in sentiment for and attention to socially responsible investments. An artefactual field experiment suggests three behavioral channels for this shift in preferences. First, investors view socially responsible assets as less risky and uncertain. Second, the crisis triggered an increase in prosocial preferences in general. Third, the affect heuristic, in which the emotional response acts as a mental shortcut in relation to a stimulus, triggers favorable expectations of socially responsible investment performance. Our insights provide evidence for the time varying nature of morality in the market, and may explain the recently documented resilience of socially responsible stocks in times of market turmoil. |
| URI: | https://digitalcollection.zhaw.ch/handle/11475/22498 |
| License (according to publishing contract): | Licence according to publishing contract |
| Departement: | School of Management and Law |
| Organisational Unit: | Institute for Financial Management (IFI) |
| Appears in collections: | Publikationen School of Management and Law |
Files in This Item:
There are no files associated with this item.
Show full item record
Mahmoud, O., & Meyer, J. (2021). Social responsibility in the time of uncertainty : a natural experiment. SSRN. https://doi.org/10.2139/ssrn.3774995
Mahmoud, O. and Meyer, J. (2021) Social responsibility in the time of uncertainty : a natural experiment. SSRN. Available at: https://doi.org/10.2139/ssrn.3774995.
O. Mahmoud and J. Meyer, “Social responsibility in the time of uncertainty : a natural experiment,” SSRN, Feb. 2021. doi: 10.2139/ssrn.3774995.
MAHMOUD, Ola und Julia MEYER, 2021. Social responsibility in the time of uncertainty : a natural experiment. SSRN
Mahmoud, Ola, and Julia Meyer. 2021. “Social Responsibility in the Time of Uncertainty : A Natural Experiment.” SSRN. https://doi.org/10.2139/ssrn.3774995.
Mahmoud, Ola, and Julia Meyer. Social Responsibility in the Time of Uncertainty : A Natural Experiment. SSRN, 1 Feb. 2021, https://doi.org/10.2139/ssrn.3774995.
Items in DSpace are protected by copyright, with all rights reserved, unless otherwise indicated.