The relative Importance of ESG dimensions in Investor Decison-making

Abstract

This thesis provides insights into the relative importance of ESG dimensions. The factorial survey method was employed which required students from Radboud University to rate several excerpts containing information about hypothetical firms regarding their environmental, financial, social and governance performance. Results show that the environmental dimension is most important for investors in determining their likelihood to invest in a firm. It is followed by the governance and social dimensions respectively. Interestingly, the environmental dimension is relatively more important than financial performance in this sample.