Prof. Paul Smeets - Short glimpse of the 2024 American Finance Association in San Antonio, Texas

Why do investors pay higher fees on sustainable investments?
Gunnar Gutsche and I presented our paper "Why do investors pay higher fees on sustainable investments? An experiment in 5 European countries." at the 2024 American Finance Association in San Antonio, Texas.
We investigate why investors pay higher fees for sustainable funds. Is it because of their social preferences (they pay to do good)? Or because of their limited financial literacy (they do not understand fees)?
We find that social preferences predict the share of sustainable investment but do not predict whether investors are fee-sensitive. Rather, investors with low financial literacy, tend to bee fee-insensitive. Those investors with very low financial literacy even invest more as investment funds become more expensive.
Watch the full video of this paper here: Watch the full video here: • Why do investors pay h...
Reference to the main article: papers.ssrn.co...
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Paul Smeets is Professor of Philanthropy and Sustainable Finance at the University of Amsterdam. His goal is to maximise the impact of every euro donated to charity and every euro invested with impact. Therefore, he evaluates the impact of charitable projects; studies what motivates people to give; and explores new developments and trends in the world of philanthropy and sustainable finance.
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Video edited by Jascha Neutelings, CONCREET.media | concreet.media/

[@durairaja1200]

Very nice subject and video explaining the same. Video really helps understand the subject very well. Lot of handworks put here.