Influence of regulation and information on environmental investment decision-making: An experimental study

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Sarker, Tapan
S. Monroe, Gary
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2012
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Abstract

Previous empirical studies provide mixed results on the relationships between regulatory and human factors in relation to corporate environmental informational strategies on individual environmental investment decisionmaking. We investigate the relationships by testing hypotheses from socio-political and cognitive dissonance theories using an experiment. We find that both regulatory climate and information strategy have strong main effects on individual environmental investment decision-making. However, contrary to the literature, these two variables do not have any interaction effect on individual environmental investment decision-making. The results are consistent with the predictions of the institutional and legitimacy theories but inconsistent with the interaction effect of the two variables predicted by self-justification theory. Nevertheless, we show that both regulatory influence and environmental information strategy can be highly desirable social control options for business organisations to include environmental and ethical drivers in investment decision-making.

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Asia Pacific Work in Progress Research Paper Series

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7

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© The Author(s) 2012. The attached file is reproduced here in accordance with the copyright policy of the publisher. For information about this journal please refer to the journal’s website or contact the authors.

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Organisation and Management Theory

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