Social preferences and corporate investment

• 成果类型: Article
• 署名作者: Dangl, Thomas; Halling, Michael; Yu, Jin; Zechner, Josef
• 署名单位: Technische Universitat Wien; University of Luxembourg; Monash University; Vienna University of Economics & Business
• 刊物名称: JOURNAL OF FINANCIAL ECONOMICS
• ISSN/ISSBN: 0304-405X
• DOI: 10.1016/j.jfineco.2025.104139
• 发表日期: 2025
• 关键词: social preferences; portfolio choice; Corporate investment

摘要

This paper presents a framework to study how investors' social concerns affect technology choices. Consequentialist preferences (disutility from aggregate harm) influence outcomes only if investors coordinate, unless internalized harm is independent of an investor's mass. Non-consequentialist preferences (disutility from stockholdings) affect outcomes regardless of coordination. Both preferences have stronger impact when risk-sharing consequences of technology supply are small (e.g., highly correlated returns), and their effects cannot be inferred from cost-of-capital differences. When harm is stochastic, polluting firms may appear less risky to social investors. Depending on type and strength of social preferences, this can support or hinder the green transition.