Do Investors Care About Impact?

ArXiv ID: ssrn-3765659 “View on arXiv”

Authors: Unknown

Abstract

We assess how investors’ willingness-to-pay (WTP) for sustainable investments responds to the social impact of those investments, using a framed field experimen

Keywords: willingness-to-pay (WTP), social impact, sustainable investments, framed field experiment, impact investing, Equities

Complexity vs Empirical Score

• Math Complexity: 2.0/10
• Empirical Rigor: 8.0/10
• Quadrant: Street Traders
• Why: The paper uses experimental economics methodology with survey data and statistical analysis, but lacks advanced mathematical derivations. It includes experimental design, data collection, and statistical testing typical of empirical finance studies.

  flowchart TD
    A["Research Goal: Do investors pay more for social impact?"] --> B["Methodology: Framed Field Experiment"]
    B --> C["Data/Inputs: Real capital allocations by professional investors"]
    C --> D["Computation: WTP estimation & impact sensitivity analysis"]
    D --> E["Outcome: Strong preference for positive social impact"]