The effects of outcome framing on impact investment choices

Abstract

Using an experimental design, we examined the effects of variability in outcome information framing on the decision-making process of impact investors. Our findings illustrate that outcome framing has a meaningful effect on the capital allocation decision investors, but does not influence risk perception or sense of understanding of an investment choice. Given the emerging interest and importance of impact investment as a mechanism for addressing rising environmental, social, and governance needs, we believe that the findings presented in our paper will appeal to socially conscious investors who subscribe to the Journal of Business Ethics. Our findings will allow your readers to consider the ethical and practical implications of outcome framing within an inherently dichotomous field of investment.