Financial analysts’ personal values, perceived behavioural risk and investment decisions in evaluating CSR
International Journal of Islamic and Middle Eastern Finance and Management
ISSN: 1753-8394
Article publication date: 26 January 2023
Issue publication date: 2 June 2023
Abstract
Purpose
This paper aims to contribute to the corporate social responsibility (CSR) literature by providing holistic insights into financial analysts’ personal values, perceived behavioural risk and investment decisions relating to the social aspects of CSR. Specifically, this paper examines whether analysts’ personal values, such as religiosity, spirituality and social consciousness, influence their investment decisions relating to a highly profitable firm that is alleged of exploiting labour rights. This study also examines the mediating role of analysts’ perceived behavioural risk between personal values and investment decisions.
Design/methodology/approach
Data were collected, using a scenario-based survey, from 145 financial analysts at both public and private companies in Pakistan.
Findings
The results show that analysts’ values, including religiosity, spirituality and social consciousness, have a significant negative impact on their investment decisions. The results also demonstrate that perceived behavioural risk mediates the relationship between these values and investment decisions.
Practical implications
This study has implications for the globalised business world, regulators and researchers for incorporating personal and ethical values into risk and investment decision-making.
Originality/value
This study establishes the importance of analysts’ personal values in risky investment decision-making.
Keywords
Acknowledgements
The authors acknowledge the valuable feedback provided by Dr Muhammad Imran and the useful insights of the editor, Professor M. Kabir Hassan.
Conflict of interest: The authors declare that they have no conflict of interest.
Data availability statement: The data that support the findings of this study are available on request from the corresponding author. The data are not publicly available due to privacy or ethical restrictions.
Citation
Shahid, A.U., Tufail, H.S., Ali, H.Y. and Jonathan, J. (2023), "Financial analysts’ personal values, perceived behavioural risk and investment decisions in evaluating CSR", International Journal of Islamic and Middle Eastern Finance and Management, Vol. 16 No. 4, pp. 716-733. https://doi.org/10.1108/IMEFM-11-2021-0443
Publisher
:Emerald Publishing Limited
Copyright © 2023, Emerald Publishing Limited