The Effect of Near-vs-Distant-Future Mindsets on Socially Responsible Investors' Mutual Fund Preferences
Date of this version
Socially responsible investing; temporal construal; Shari’a-compliant mutual funds; Muslim consumer financial decision making
Socially responsible investing (SRI) has seen tremendous growth in recent years. For SRI investors, choosing among potential SRI investments often requires making trade-offs between social responsibility and financial aspects of the investment. In this study we examine contexts where investors are more vs. less willing to make such trade-offs, specifically in the context of SRI-guided mutual funds among Muslim investors. We expect that priming a near-future mindset will make respondents less likely to trade-off social responsibility for financial considerations while priming a distant-future mindset will make respondents more likely to make such trade-offs. Using a discrete choice experimental design among Saudi Arabian adults, we find support for our hypotheses. Managerial implications and directions for future research are discussed.
Journal of Financial Services Marketing