Investment motives and performance expectations of impact investors

Bachmann, Kremena; Meyer, Julia; Krauss, Annette

doi:10.2139/ssrn.4402681

Publication type:	Working paper – expertise – study
Title:	Investment motives and performance expectations of impact investors
Authors:	Bachmann, Kremena Meyer, Julia Krauss, Annette
et. al:	No
DOI:	10.2139/ssrn.4402681
Extent:	24
Issue Date:	11-Apr-2023
Publisher / Ed. Institution:	SSRN
Language:	English
Subjects:	Impact investing; Halo effect; Wishful thinking; Expectation; Nonfinancial motive
Subject (DDC):	332.6: Investment
Abstract:	Using a unique sample of retail impact investors, this study evaluates how investors deal with the challenge of aligning their financial and their nonfinancial goals. We find cross–asset class difference in the relationship between nonfinancial preferences and financial performance expectations indicating that investors form financial expectations that fit with the investment decisions that their nonfinancial preferences are likely to motivate. Investors with broader investment experience are less likely to be optimistic with respect to the risk-adjusted return potential of impact investments, but differences in investment experience cannot explain why investors with stronger nonfinancial motives are more likely to be optimistic regarding the financial potential of impact investments, which supports the notion that financial expectations motivated by nonfinancial preferences sustain negative feedback. Our findings challenge conclusions drawn from observed behavior regarding investors’ willingness to pay for impact, and provide further evidence that preferences can affect expectations.
URI:	https://digitalcollection.zhaw.ch/handle/11475/29796
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

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Bachmann, K., Meyer, J., & Krauss, A. (2023). Investment motives and performance expectations of impact investors. SSRN. https://doi.org/10.2139/ssrn.4402681

Bachmann, K., Meyer, J. and Krauss, A. (2023) Investment motives and performance expectations of impact investors. SSRN. Available at: https://doi.org/10.2139/ssrn.4402681.

K. Bachmann, J. Meyer, and A. Krauss, “Investment motives and performance expectations of impact investors,” SSRN, Apr. 2023. doi: 10.2139/ssrn.4402681.

BACHMANN, Kremena, Julia MEYER und Annette KRAUSS, 2023. Investment motives and performance expectations of impact investors. SSRN

Bachmann, Kremena, Julia Meyer, and Annette Krauss. 2023. “Investment Motives and Performance Expectations of Impact Investors.” SSRN. https://doi.org/10.2139/ssrn.4402681.

Bachmann, Kremena, et al. Investment Motives and Performance Expectations of Impact Investors. SSRN, 11 Apr. 2023, https://doi.org/10.2139/ssrn.4402681.