Advances in Economics, Management and Political Sciences
- The Open Access Proceedings Series for Conferences
Proceedings of the 2nd International Conference on Financial Technology and Business Analysis
Series Vol. 54 , 01 December 2023
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Access | Article
The Anchoring Effect in ESG (Environmental, Social, Governance) Investing
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Abstract
This research paper delves into the intrinsic dynamics of the anchoring effect as it pertains to corporate engagement in green governance. The findings underscore two distinct phenomena: firstly, in the presence of solely an internal anchor, there is a marked internal anchoring effect. This indicates a direct correlation between the magnitude of a focus firm's expenditure and its green outlay. Conversely, when only influenced by an external anchor, there emerges a pronounced externality among companies affiliated with Global Prime Partners (GPP). Specifically, a prior heightened expenditure on environmental initiatives is indicative of potential benefits reaped from anchoring in the realm of Environmental, Social, and Governance (ESG) strategies. This paper further elucidates the implications of these anchoring effects on decision-making processes and offers strategic insights into harnessing their inherent advantages.
Keywords
cognitive bias, the anchoring effect, ESG, and green finance
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Data Availability
The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.
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- Volume Title
- Proceedings of the 2nd International Conference on Financial Technology and Business Analysis
- ISBN (Print)
- 978-1-83558-155-1
- ISBN (Online)
- 978-1-83558-156-8
- Published Date
- 01 December 2023
- Series
- Advances in Economics, Management and Political Sciences
- ISSN (Print)
- 2754-1169
- ISSN (Online)
- 2754-1177
- DOI
- 10.54254/2754-1169/54/20230888
- Copyright
- 01 December 2023
- Open Access
- This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited