Do Investors Follow Their Values? Impact Investment Behavior and Sustainable Development Goals

This study examines the behavioral determinants of investment decisions, with a focus on value alignment and congruence with the Sustainable Development Goals (SDGs). Drawing on behavioral finance theory, this study explores how pro-environmental and prosocial orientations influence individuals’ willingness to pay (WTP) for social- or pro-environmental stocks. Using hypothetical investment scenarios, the study reveals that SDG-alignment in-creases investment willingness. This underscores the salience of value-congruent framing over abstract value-led orientation. The findings challenge the homo economicus paradigm and affirm bounded rationality as a more suitable model for impact investment behavior. The study contributes to sustainable finance literature by highlighting the role of value alignment and SDG-based framing. These insights support the design of more effective impact investment products and communication strategies tailored to the profiles of ethical investors.