1 Introduction
2 Hypotheses
3 Data, Experimental Design, and Variables
3.1 Variables for the Analysis of Investment Barriers
Statement | Investor group (Abbreviation) | Absolute frequency (Relative frequency in %) |
---|---|---|
I currently own sustainable investments and I will still invest in sustainable investments in the next three years. | Socially responsible investors (SRs) | 109 (13.61) |
I currently own sustainable investments, but I will not invest in sustainable investments any more in the next three years | Skeptical investors (SKs) | 83 (10.36) |
I currently do not own sustainable investments, but I will invest in sustainable investments in the next three years | Interested investors (INTs) | 248 (30.96) |
I currently do not own sustainable investments and I will not invest in sustainable investments in the next three years | Conventional investors (CONVs) | 361 (45.07) |
Variables | Number of observations | Mean | Standard deviations | Minimum | Maximum |
---|---|---|---|---|---|
Perceived information costs | |||||
Too little knowledge | 765 | 0.50 | 0.50 | 0 | 1 |
Number of information sources | 768 | 2.53 | 1.29 | 1 | 8 |
Poorly informed | 781 | 0.61 | 0.49 | 0 | 1 |
No offer by bank | 739 | 0.62 | 0.49 | 0 | 1 |
Distrust | 734 | 0.38 | 0.49 | 0 | 1 |
Perceived (relative) financial performance | |||||
Lower return | 646 | 0.59 | 0.49 | 0 | 1 |
Higher risk | 665 | 0.33 | 0.47 | 0 | 1 |
Perceived (relative) transaction costs | |||||
Higher fees | 635 | 0.36 | 0.48 | 0 | 1 |
Sociodemographic and socioeconomic variables | |||||
Age | 801 | 44.71 | 12.69 | 19 | 78 |
Female | 801 | 0.44 | 0.50 | 0 | 1 |
University degree | 799 | 0.38 | 0.49 | 0 | 1 |
Information source | Share of all investors in % | Share of SRs in % | Share of SKs in % | Share of INTs in % | Share of CONVs in % |
---|---|---|---|---|---|
Relevant websites | 52.31 | 60.55 | 36.14 | 59.68 | 48.48 |
Bank advisor | 49.19 | 45.87 | 45.78 | 50.81 | 49.86 |
Talk to friends or relatives | 40.82 | 44.95 | 46.99 | 41.53 | 37.67 |
Relevant magazines | 28.59 | 46.79 | 15.66 | 34.27 | 22.16 |
Magazine of the Stiftung Warentesta | 24.22 | 28.44 | 21.69 | 31.85 | 18.28 |
Newspapers | 20.35 | 31.19 | 16.87 | 21.77 | 16.90 |
Other advisor | 16.98 | 22.02 | 28.92 | 19.76 | 10.80 |
Consumer advice center | 6.99 | 11.93 | 9.64 | 7.66 | 4.43 |
Other information sources | 2.87 | 7.34 | 1.20 | 1.21 | 3.05 |
3.2 Experimental Design and Variables
Please indicate which of the following four equity funds appears so attractive for you that you would most likely purchase it | ||||
---|---|---|---|---|
Attribute | Equity fund A | Equity fund B | Equity fund C | Equity fund D |
Value of the subscription fee | 3.00% | 5.00% | 5.00% | 4.00% |
Net return in the last year | 4.00% | 8.00% | 7.00% | 5.00% |
Average annual net return in the last five years | 3.00% | 7.00% | 5.00% | 9.00% |
Sustainability criteria | Consideration without sustainability certificate | No consideration | Consideration with sustainability certificate | No consideration |
Transparency logo | Transparency logo issued by the state | No transparency logo | Transparency logo issued by an NGO | Transparency logo issued by an NGO |
☐ | ☐ | ☐ | ☐ |
Attributes | Attribute levels |
---|---|
Value of the subscription fee | 3.00%, 4.00%, 5.00% |
Net return in the last year | 4.00%, 5.00%, 6.00%, 7.00%, 8.00% |
Average annual net return in the last five years | 3.00%, 5.00%, 6.00%, 7.00%, 9.00% |
Sustainability criteria | No consideration, consideration without sustainability certificate, consideration with sustainability certificate |
Transparency logo | No transparency logo, transparency logo issued by an NGO, transparency logo issued by the state |
4 Empirical Results
4.1 Analysis of Investment Barriers for Individual Investors
4.1.1 Bivariate Analysis
4.1.2 Estimation Results of Multivariate Analysis
Explanatory variables | SRs | SKs | INTs | CONVs |
---|---|---|---|---|
Perceived information costs | ||||
Too little knowledge | −0.135*** (0.035) | 0.004 (0.034) | −0.049 (0.048) | 0.180*** (0.047) |
Number of information sources | 0.031*** (0.011) | −0.026** (0.012) | 0.032** (0.015) | −0.038** (0.016) |
Poorly informed | −0.048 (0.035) | 0.000 (0.033) | 0.116** (0.046) | −0.068 (0.046) |
No offer by bank | −0.080** (0.034) | −0.132*** (0.036) | 0.158*** (0.044) | 0.053 (0.045) |
Distrust | 0.012 (0.036) | 0.080** (0.033) | −0.174*** (0.042) | 0.082* (0.044) |
Perceived (relative) financial performance | ||||
Lower return | −0.016 (0.032) | 0.028 (0.029) | −0.060 (0.043) | 0.048 (0.041) |
Higher risk | −0.082*** (0.031) | −0.026 (0.030) | −0.049 (0.044) | 0.156*** (0.044) |
Perceived (relative) transaction costs | ||||
Higher fees | −0.036 (0.034) | −0.052* (0.030) | 0.052 (0.045) | 0.037 (0.043) |
Sociodemographic variables | ||||
Age | 0.001 (0.001) | −0.001 (0.001) | −0.003** (0.002) | 0.003** (0.002) |
Female | 0.014 (0.034) | 0.049* (0.029) | −0.067 (0.043) | 0.005 (0.041) |
University degree | 0.083*** (0.032) | −0.012 (0.027) | −0.015 (0.042) | −0.055 (0.040) |
4.2 The Impact of Labels On Investment Decisions
4.2.1 Econometric Approach
Explanatory variables | All | SRs | SKs | INTs | CONVs |
---|---|---|---|---|---|
Mean of the parameters (robust standard errors) | |||||
Net return in the last year | 0.272*** (0.020) | 0.231*** (0.45) | 0.149*** (0.050) | 0.242*** (0.033) | 0.362*** (0.036) |
Average annual net return in the last five years | 0.513*** (0.026) | 0.378*** (0.056) | 0.318*** (0.059) | 0.455*** (0.042) | 0.679*** (0.048) |
Value of the subscription fee | −0.279*** (0.034) | −0.196** (0.080) | −0.098 (0.086) | −0.260*** (0.060) | −0.380*** (0.055) |
Consideration of sustainability criteria without certificate | −0.658*** (0.061) | −0.832*** (0.197) | −0.571*** (0.141) | −0.735*** (0.107) | −0.571*** (0.094) |
Conventional fund | −1.388*** (0.082) | −1.927*** (0.280) | −1.086*** (0.189) | −1.907*** (0.158) | −0.946*** (0.110) |
Transparency logo | 1.098*** (0.073) | 1.297*** (0.186) | 0.546*** (0.156) | 1.395*** (0.143) | 1.030*** (0.110) |
Standard deviation of the parameters (robust standard errors) | |||||
Net return in the last year | 0.322*** (0.024) | 0.208*** (0.073) | 0.243*** (0.061) | 0.271*** (0.041) | −0.405*** (0.038) |
Average annual net return in the last five years | 0.489*** (0.024) | 0.418*** (0.049) | 0.372*** (0.053) | 0.433*** (0.042) | 0.568*** (0.040) |
Subscription fee | 0.592*** (0.045) | −0.412*** (0.147) | 0.488*** (0.127) | 0.603*** (0.085) | −0.668*** (0.064) |
Consideration of sustainability criteria without certificate | −0.563*** (0.097) | 1.035*** (0.228) | −0.010 (0.037) | −0.519*** (0.165) | 0.450*** (0.151) |
Conventional fund | 1.312*** (0.078) | 1.782*** (0.268) | 0.822*** (0.184) | 1.342*** (0.132) | −1.091*** (0.109) |
Transparency logo | 1.309*** (0.085) | 1.057*** (0.212) | 0.764*** (0.205) | 1.370*** (0.133) | 1.390*** (0.125) |
N (observations) | 801 (6408) | 109 (872) | 83 (664) | 248 (1984) | 361 (2888) |
Explanatory variables | Mean of the parameter (robust standard error) | Standard deviation of the parameter (robust standard error) |
---|---|---|
Net return in the last year | 0.280*** (0.020) | 0.318*** (0.024) |
Average annual net return in the last five years | 0.515*** (0.026) | 0.483*** (0.024) |
Value of the subscription fee | −0.277*** (0.034) | 0.610*** (0.045) |
Consideration of sustainability criteria without certificate | 0.641*** (0.055) | −0.602*** (0.089) |
Consideration of sustainability criteria with certificate | 0.862*** (0.095) | 1.335*** (0.082) |
Consideration of sustainability criteria with certificate * SRs | 0.819*** (0.231) | – |
Consideration of sustainability criteria with certificate * SKs | 0.360* (0.207) | – |
Consideration of sustainability criteria with certificate * INTs | 0.776*** (0.150) | – |
Transparency logo | 0.969*** (0.101) | 1.296*** (0.078) |
Transparency logo * SRs | 0.404** (0.205) | – |
Transparency logo * SKs | −0.254 (0.199) | – |
Transparency logo * INTs | 0.482*** (0.161) | – |
N (observations) | 801 (6408) |
Explanatory variables | All | SRs | SKs | INTs | CONVs |
---|---|---|---|---|---|
Mean of the estimated parameters (robust standard errors) | |||||
Net return in the last year | 0.264*** (0.024) | 0.240*** (0.048) | 0.112** (0.051) | 0.226*** (0.036) | 0.383*** (0.051) |
Average annual net return in the last five years | 0.509*** (0.029) | 0.383*** (0.063) | 0.260*** (0.063) | 0.455*** (0.045) | 0.772*** (0.065) |
Value of the subscription fee | −0.317*** (0.042) | −0.150*** (0.083) | −0.070 (0.105) | −0.276*** (0.066) | −0.591*** (0.085) |
Consideration of sustainability criteria without certificate | 0.746*** (0.070) | 0.883*** (0.180) | 0.568*** (0.160) | 1.038*** (0.116) | 0.396*** (0.125) |
Consideration of sustainability criteria with certificate | 0.497 (0.395) | 1.328 (1.076) | −0.908 (0.889) | 0.449 (0.546) | −0.031 (0.787) |
Consideration of sustainability criteria with certificate * Too little knowledge | −0.692*** (0.197) | −1.646*** (0.599) | −0.268 (0.509) | −0.347 (0.259) | −0.633* (0.324) |
Consideration of sustainability criteria with certificate * Number of information sources | 0.124* (0.064) | 0.413** (0.167) | 0.234 (0.193) | −0.140 (0.097) | 0.224* (0.115) |
Consideration of sustainability criteria with certificate * Poorly informed | 0.262 (0.195) | −0.730 (0.519) | 0.021 (0.388) | 0.113 (0.296) | 1.134*** (0.347) |
Consideration of sustainability criteria with certificate * No offer by bank | 0.399** (0.187) | 1.030** (0.493) | 0.024 (0.516) | 0.919*** (0.277) | −0.237 (0.299) |
Consideration of sustainability criteria with certificate * Distrust | −0.513*** (0.176) | −0.494 (0.548) | −0.065 (0.441) | −0.724*** (0.277) | −0.535* (0.282) |
Consideration of sustainability criteria with certificate * Lower return | −0.093 (0.166) | 0.249 (0.489) | 0.257 (0.417) | −0.080 (0.247) | −0.023 (0.294) |
Consideration of sustainability criteria with certificate * Higher risk | −0.486*** (0.176) | −1.619*** (0.545) | −0.551 (0.503) | −0.199 (0.261) | −0.282 (0.288) |
Consideration of sustainability criteria with certificate * Higher fees | −0.158 (0.168) | −0.495 (0.504) | 0.129 (0.374) | −0.429* (0.259) | 0.075 (0.271) |
Consideration of sustainability criteria with certificate *Age | 0.020*** (0.006) | 0.002 (0.016) | 0.042*** (0.016) | 0.028*** (0.010) | 0.015 (0.011) |
Consideration of sustainability criteria with certificate * Female | 0.263 (0.171) | −0.450 (0.472) | −0.159 (0.398) | 0.474* (0.265) | 0.444 (0.314) |
Consideration of sustainability criteria with certificate * University degree | 0.017 (0.164) | −0.089 (0.507) | −0.112 (0.342) | 0.350 (0.238) | −0.359 (0.293) |
Transparency logo | 0.457 (0.394) | −0.882 (0.785) | 0.707 (1.076) | 0.872 (0.632) | 0.572 (0.725) |
Transparency logo * Too little knowledge | −0.274 (0.195) | −0.385 (0.448) | −0.240 (0.487) | −0.141 (0.337) | −0.224 (0.369) |
Transparency logo * Number of information sources | 0.073 (0.064) | 0.094 (0.131) | 0.077 (0.210) | −0.082 (0.110) | 0.210* (0.118) |
Transparency logo * Poorly informed | 0.172 (0.202) | −0.078 (0.373) | −0.161 (0.428) | 0.394 (0.365) | 0.526 (0.396) |
Transparency logo * No offer by bank | 0.083 (0.192) | −0.356 (0.381) | 0.378 (0.564) | 0.287 (0.311) | −0.385 (0.339) |
Transparency logo * Distrust | −0.171 (0.182) | −0.178 (0.365) | 0.015 (0.459) | −0.060 (0.319) | 0.196 (0.320) |
Transparency logo * Lower return | −0.499*** (0.172) | −0.102 (0.363) | −0.178 (0.456) | −0.662** (0.285) | −0.686* (0.355) |
Transparency logo * Higher risk | −0.023 (0.178) | 0.615 (0.497) | −0.186 (0.525) | −0.247 (0.305) | −0.003 (0.322) |
Transparency logo * Higher fees | 0.050 (0.173) | −0.081 (0.395) | −0.069 (0.401) | 0.113 (0.299) | −0.007 (0.310) |
Transparency logo *Age | 0.021*** (0.006) | 0.043*** (0.015) | 0.010 (0.019) | 0.019 (0.012) | 0.013 (0.011) |
Transparency logo * Female | 0.117 (0.174) | 0.234 (0.418) | −0.497 (0.400) | −0.165 (0.299) | 0.511* (0.303) |
Transparency logo * University degree | −0.199 (0.170) | 0.277 (0.376) | −0.037 (0.440) | −0.039 (0.279) | −0.855*** (0.293) |
Standard deviation of parameters (robust standard errors) | |||||
Net return in the last year | 0.276*** (0.028) | 0.174* (0.099) | 0.163** (0.068) | 0.257*** (0.043) | 0.381*** (0.058) |
Average annual net return in the last five years | 0.465*** (0.027) | 0.410*** (0.061) | 0.334*** (0.054) | 0.367*** (0.038) | 0.570*** (0.053) |
Value of the subscription fee | 0.632*** (0.055) | 0.387*** (0.132) | 0.556*** (0.132) | 0.575*** (0.087) | 0.782*** (0.100) |
Consideration of sustainability criteria without certificate | 0.618*** (0.110) | 0.983*** (0.197) | 0.026 (0.056) | 0.473** (0.229) | −0.674*** (0.187) |
Consideration of sustainability criteria with certificate | 1.316*** (0.105) | 1.673*** (0.277) | 0.736*** (0.238) | 1.077*** (0.154) | 1.190*** (0.184) |
Transparency logo | 1.296*** (0.104) | 0.720*** (0.260) | 0.954*** (0.267) | 1.230*** (0.150) | 1.379*** (0.180) |
N (observations) | 530 (4240) | 91 (728) | 60 (480) | 194 (1552) | 185 (1480) |