The Impact of Framing on Impact Investing

The Impact of Framing on Impact Investing

Author: 
Harvey, Fatima
Place: 
London
Publisher: 
Adonis & Abbey Publishers
Date published: 
2022
Record type: 
Responsibility: 
Myres, Kerrin, jt. author
Price, Gavin, jt. author
Journal Title: 
African Journal of Business and Economic Research (AJBER)
Source: 
African Journal of Business and Economic Research, Vol. 17, No. 2, 2022, pp.
Abstract: 

Impact investors are faced with the issue of risk and return evaluation on both the scale of financial performance and social performance. The study extends the understanding of the relationships between investor perception of risk, sense of understanding, and financial decision-making into the inherently dichotomous context of impact investment. Through the lens of prospect theory, an instrument for data collection was designed to evaluate the effects of finance outcome dominant, social outcome dominant, and hybrid outcome framing on an investor's perception of risk, sense of understanding, and capital allocation decisions. This research found that variability in outcome framing influences an investor's capital allocation decision but does not affect the perception of risk or sense of understanding. These findings contribute to the understanding of how the framing of compound outcomes with both financial and moral implications affects the decision-making choice process of individuals.

Language: 

CITATION: Harvey, Fatima. The Impact of Framing on Impact Investing . London : Adonis & Abbey Publishers , 2022. African Journal of Business and Economic Research, Vol. 17, No. 2, 2022, pp. - Available at: https://library.au.int/impact-framing-impact-investing