Help
Cart
Skip main navigation

Available Issues

April 10, 2013 - June 5, 2026

Available Issues

April 10, 2013 - June 5, 2026

Do Financial Advisors Charge Sustainable Investors a Premium?

Published Online:23 Jan 2026https://doi.org/10.1287/mnsc.2025.00232

References

  • Alevy JE, Haigh MS, List JA (2007) Information cascades: Evidence from a field experiment with financial market professionals. J. Finance 62(1):151–180.Crossref, Google Scholar
  • Anderson A, Robinson DT (2022) Financial literacy in the age of green investment. Rev. Finance 26(6):1551–1584.Crossref, Google Scholar
  • Aragon GO, Jiang Y, Joenväärä J, Tiu CI (2025) Responsible investing: Costs and benefits for university endowment funds. J. Financial Econom. 172:104151.Crossref, Google Scholar
  • Avramov D, Cheng S, Lioui A, Tarelli A (2022) Sustainable investing with ESG rating uncertainty. J. Financial Econom. 145(2):642–664.Crossref, Google Scholar
  • Badoer DC, Costello CP, James CM (2020) I can see clearly now: The impact of disclosure requirements on 401(k) fees. J. Financial Econom. 136(2):471–489.Crossref, Google Scholar
  • Baker M, Egan ML, Sarkar SK (2022) How do investors value ESG? NBER Working Paper No. 30708, National Bureau of Economic Research, Cambridge, MA.Google Scholar
  • Barber BM, Morse A, Yasuda A (2021) Impact investing. J. Financial Econom. 139(1):162–185.Crossref, Google Scholar
  • Bauer R, Ruof T, Smeets P (2021) Get real! Individuals prefer more sustainable investments. Rev. Financial Stud. 34(8):3976–4043.Crossref, Google Scholar
  • Benson KL, Humphrey JE (2008) Socially responsible investment funds: Investor reaction to current and past returns. J. Banking Finance 32(9):1850–1859.Crossref, Google Scholar
  • Berg F, Kölbel JF, Rigobon R (2022) Aggregate confusion: The divergence of ESG ratings. Rev. Finance 26(6):1315–1344.Crossref, Google Scholar
  • Bergstresser D, Chalmers JMR, Tufano P (2009) Assessing the costs and benefits of brokers in the mutual fund industry. Rev. Financial Stud. 22(10):4129–4156.Crossref, Google Scholar
  • Berk JB, Van Binsbergen JH (2025) The impact of impact investing. J. Financial Econom. 164:103972.Crossref, Google Scholar
  • Bhattacharya U, Hackethal A, Kaesler S, Loos B, Meyer S (2012) Is unbiased financial advice to retail investors sufficient? Answers from a large field study. Rev. Financial Stud. 25(4):975–1032.Crossref, Google Scholar
  • Białkowski J, Starks L (2016) SRI funds: Investor demand, exogenous shocks and ESG profiles. Working paper, University of Canterbury, Department of Economics and Finance, Christchurch, Canterbury, New Zealand. Google Scholar
  • Black AJ, Kölbel JF (2025) Pricing differentiated funds: The puzzle of ESG fund fees. Swiss Finance Institute (c/o University of Geneva) Research Paper No. 24-109, Geneva, Switzerland. Google Scholar
  • Gibson R, Glossner S, Krueger P, Matos P, Steffen T (2022) Do responsible investors invest responsibly? Rev. Finance 26(6):1389–1432.Google Scholar
  • Brown JR, Goolsbee A (2002) Does the internet make markets more competitive? Evidence from the life insurance industry. J. Political Econom. 110(3):481–507.Crossref, Google Scholar
  • Bucher-Koenen T, Hackethal A, Koenen J, Laudenbach C (2025) Gender differences in financial advice. Amer. Econom. Rev. 115(12):4218–4252.Crossref, Google Scholar
  • Calcagno R, Monticone C (2015) Financial literacy and the demand for financial advice. J. Banking Finance 50:363–380.Crossref, Google Scholar
  • Cao J, Titman S, Zhan X, Zhang W (2023) ESG preference, institutional trading, and stock return patterns. J. Financial Quant. Anal. 58(5):1843–1877.Crossref, Google Scholar
  • Carlin BI (2009) Strategic price complexity in retail financial markets. J. Financial Econom. 91(3):278–287.Crossref, Google Scholar
  • Ceccarelli M, Ramelli S, Wagner AF (2024) Low carbon mutual funds. Rev. Finance 28(1):45–74.Crossref, Google Scholar
  • Chalmers J, Reuter J (2020) Is conflicted investment advice better than no advice? J. Financial Econom. 138(2):366–387.Crossref, Google Scholar
  • Choi JJ, Laibson D, Madrian BC (2010) Why does the law of one price fail? An experiment on index mutual funds. Rev. Financial Stud. 23(4):1405–1432.Crossref, Google Scholar
  • Cucinelli D, Soana MG (2023) Investor preferences, financial literacy and intermediary choice towards sustainability. Res. Internat. Bus. Finance 66:102027.Crossref, Google Scholar
  • Duffie D, Gârleanu N, Pedersen LH (2005) Over-the-counter markets. Econometrica 73(6):1815–1847.Crossref, Google Scholar
  • Dyck A, Lins KV, Roth L, Wagner HF (2019) Do institutional investors drive corporate social responsibility? International evidence. J. Financial Econom. 131(3):693–714.Crossref, Google Scholar
  • Egan M, Ge S, Tang J (2022) Conflicting interests and the effect of fiduciary duty: Evidence from variable annuities. Rev. Financial Stud. 35(12):5334–5386.Crossref, Google Scholar
  • Engler D, Gutsche G, Smeets P (2024) Do preferences for sustainable investments differ across countries? A large-scale experiment in five European countries. Working paper, Institute of Economics, University of Kassel, Kassel, Hesse, Germany.Google Scholar
  • European Securities and Markets Authority (2019) Final report: ESMA’s technical advice to the European Commission on integrating sustainability risks and factors in MiFID II. Technical Report No. ESMA35-43-1737, European Securities and Markets Authority, Paris.Google Scholar
  • Falk A, Becker A, Dohmen T, Huffman D, Sunde U (2023) The preference survey module: A validated instrument for measuring risk, time, and social preferences. Management Sci. 69(4):1935–1950.Link, Google Scholar
  • Fernandes D, Lynch JG Jr, Netemeyer RG (2014) Financial literacy, financial education, and downstream financial behaviors. Management Sci. 60(8):1861–1883.Link, Google Scholar
  • Foerster S, Linnainmaa JT, Melzer BT, Previtero A (2017) Retail financial advice: Does one size fit all? J. Finance 72(4):1441–1482.Crossref, Google Scholar
  • Gennaioli N, Shleifer A, Vishny R (2015) Money doctors. J. Finance 70(1):91–114.Crossref, Google Scholar
  • Gil-Bazo J, Ruiz-Verdú P, Santos AA (2010) The performance of socially responsible mutual funds: The role of fees and management companies. J. Bus. Ethics 94(2):243–263.Crossref, Google Scholar
  • Guenster N, Brodback D, Pouget S, Wang R (2022) The valuation of corporate social responsibility: A willingness to pay experiment. Preprint, submitted October 28, http://dx.doi.org/10.2139/ssrn.4260824.Google Scholar
  • Haigh MS, List JA (2005) Do professional traders exhibit myopic loss aversion? An experimental analysis. J. Finance 60(1):523–534.Crossref, Google Scholar
  • Harrison GW, List JA (2004) Field experiments. J. Econom. Literature 42(4):1009–1055.Crossref, Google Scholar
  • Hartzmark SM, Shue K (2023) Counterproductive sustainable investing: The impact elasticity of brown and green firms. Preprint, submitted November 1, http://dx.doi.org/10.2139/ssrn.4359282.Google Scholar
  • Hau H, Hoffmann P, Langfield S, Timmer Y (2021) Discriminatory pricing of over-the-counter derivatives. Management Sci. 67(11):6660–6677.Link, Google Scholar
  • Heeb F, Kölbel JF, Paetzold F, Zeisberger S (2023) Do investors care about impact? Rev. Financial Stud. 36(5):1737–1787.Crossref, Google Scholar
  • Heinkel R, Kraus A, Zechner J (2001) The effect of green investment on corporate behavior. J. Financial Quant. Anal. 36(4):431–449.Crossref, Google Scholar
  • Hong H, Kacperczyk M (2009) The price of sin: The effects of social norms on markets. J. Financial Econom. 93(1):15–36.Crossref, Google Scholar
  • Hortaçsu A, Syverson C (2004) Product differentiation, search costs, and competition in the mutual fund industry: A case study of S&P 500 index funds. Quart. J. Econom. 119(2):403–456.Crossref, Google Scholar
  • Huij J, Laurs D, Stork P, Zwinkels R (2025) Are investors paying to be green? Evidence from mutual funds. Working paper, Rotterdam School of Management, Erasmus University, Rotterdam, Netherlands.Google Scholar
  • Kaiser T, Lusardi A, Menkhoff L, Urban C (2022) Financial education affects financial knowledge and downstream behaviors. J. Financial Econom. 145(2):255–272.Crossref, Google Scholar
  • Karlan DS (2005) Using experimental economics to measure social capital and predict financial decisions. Amer. Econom. Rev. 95(5):1688–1699.Crossref, Google Scholar
  • Kaustia M, Alho E, Puttonen V (2008) How much does expertise reduce behavioral biases? The case of anchoring effects in stock return estimates. Financial Management 37(3):391–412.Crossref, Google Scholar
  • Kirchler M, Lindner F, Weitzel U (2018) Rankings and risk-taking in the finance industry. J. Finance 73(5):2271–2302.Crossref, Google Scholar
  • Kölbel JF, Heeb F, Paetzold F, Busch T (2020) Can sustainable investing save the world? Reviewing the mechanisms of investor impact. Organ. Environ. 33(4):554–574.Crossref, Google Scholar
  • Kramer MM (2016) Financial literacy, confidence and financial advice seeking. J. Econom. Behav. Organ. 131(A):198–217.Crossref, Google Scholar
  • Krueger P, Sautner Z, Starks LT (2020) The importance of climate risks for institutional investors. Rev. Financial Stud. 33(3):1067–1111.Crossref, Google Scholar
  • Linnainmaa JT, Melzer BT, Previtero A (2021) The misguided beliefs of financial advisors. J. Finance 76(2):587–621.Crossref, Google Scholar
  • List JA, Gallet CA (2001) What experimental protocol influence disparities between actual and hypothetical stated values? Environ. Resource Econom. 20(3):241–254.Crossref, Google Scholar
  • Lusardi A, Mitchell OS (2008) Planning and financial literacy: How do women fare? Amer. Econom. Rev. 98(2):413–417.Crossref, Google Scholar
  • Lusardi A, Mitchell OS (2011) Financial literacy and planning: Implications for retirement wellbeing. NBER Working Paper No. 17078, National Bureau of Economic Research, Cambridge, MA.Google Scholar
  • Lusardi A, Mitchell OS (2014) The economic importance of financial literacy: Theory and evidence. J. Econom. Literature 52(1):5–44.Crossref, Google Scholar
  • Osler C, Bjonnes G, Kathitziotis N (2016) Bid-ask spreads in OTC markets. Working paper, Brandeis University, Waltham, MA.Google Scholar
  • Pástor L, Stambaugh RF, Taylor LA (2022) Dissecting green returns. J. Financial Econom. 146(2):403–424.Crossref, Google Scholar
  • Pedersen LH, Fitzgibbons S, Pomorski L (2021) Responsible investing: The ESG-efficient frontier. J. Financial Econom. 142(2):572–597.Crossref, Google Scholar
  • Raghunandan A, Rajgopal S (2022) Do ESG funds make stakeholder-friendly investments? Rev. Accounting Stud. 27:822–863.Crossref, Google Scholar
  • Riedl A, Smeets P (2017) Why do investors hold socially responsible mutual funds? J. Finance 72(6):2505–2550.Crossref, Google Scholar
  • Roth B, Voskort A (2014) Stereotypes and false consensus: How financial professionals predict risk preferences. J. Econom. Behav. Organ. 107(B):553–565.Crossref, Google Scholar
  • Tricks H (2022) A broken system needs urgent repairs. Economist (July 21), https://www.economist.com/special-report/2022/07/21/a-broken-system-needs-urgent-repairs.Google Scholar
  • Weitzel U, Huber C, Huber J, Kirchler M, Lindner F, Rose J (2020) Bubbles and financial professionals. Rev. Financial Stud. 33(6):2659–2696.Crossref, Google Scholar
  • Wursthorn M (2021) Tidal wave of ESG funds brings profit to wall street. Wall Street J. (March 16), https://www.wsj.com/finance/investing/tidal-wave-of-esg-funds-brings-profit-to-wall-street-11615887004?gaa_at=eafs&gaa_n=AWEtsqd-W5xXPzkjndja41MWxddE-Cfq6mRXRzNDuYWhBT82mlrV9HzCFRzjnh6c11E%3D&gaa_ts=69612582&gaa_sig=h7SzsSkfKPWQbEgKovUaoWVJ-Id10dlpODY_PnPDy6PvVYIbypfNyfXk57w4kNDf89VZoCp3V1AwEQm7d_p00A%3D%3D.Google Scholar
Previous
Back to Top
Next
INFORMS site uses cookies to store information on your computer. Some are essential to make our site work; Others help us improve the user experience. By using this site, you consent to the placement of these cookies. Please read our Privacy Statement to learn more.
Agree