Exploring the Relationship between Information Priming and Sustainable Investment Decisions

Abstract This study examines how positive and negative financial and sustainability-related news influence individual portfolio allocation decisions. Using a within-subject experiment with 42 university students, participants were exposed to fictitious news videos designed to simulate real-world information environments. The results show that priming effects are most pronounced for a high-risk, sustainability-focused fund, in which allocations declined following exposure to negative financial and sustainability news. The study contributes to the literature by exploring the effects of priming on sustainable investment decisions and informs financial planner practice on how to advise on investments in relation to media coverage of financial and sustainability issues.