The Effect of Providing Peer Information on Evaluation for Gender Equalized and ESG Oriented Firms: An Internet Survey Experiment

TL;DR

This study uses a large internet survey to show that providing peer evaluation information influences individual perceptions and willingness to invest in gender-equalized and ESG-oriented firms, especially among women and environmentally motivated investors.

Contribution

It demonstrates how peer information impacts investment preferences and perceptions towards gender-equalized and ESG firms, highlighting differential effects based on gender and motivation.

Findings

Peer information increases expected stock rise and willingness to buy.

Effect on willingness to buy exceeds impact on expected stock rise.

Women and environmentally motivated individuals are more influenced by peer information.

Abstract

Internet survey experiment is conducted to examine how providing peer information of evaluation about progressive firms changed individual's evaluations. Using large sample including over 13,000 observations collected by two-step experimental surveys, I found; (1) provision of the information leads individuals to expect higher probability of rising of stocks and be more willing to buy it. (2) the effect on willingness to buy is larger than the expected probability of stock price rising, (3) The effect for woman is larger than for man. (4) individuals who prefer environment (woman's empowerment) become more willing to buy stock of pro-environment (gender-balanced) firms than others if they have the information. (5) The effect of the peer information is larger for individuals with "warm -glow" motivation.