Signaling Trustworthiness with Impact Investments: An Experimental Study
Mardi | 2019-01-22 Salle des thĂšses 16h – 17h20 Graciela KUECHLE – Luise ROHLAND Entrepreneurs may differentiate their ventures and attract investments by advertising that their firm produces positive externalities for society. Such signaling of entrepreneursâ trustworthiness may be a prevalent practice in these âimpact investmentââ opportunities. This paper investigates theoretically this possible signaling and it studies the interplay of altruistic, fiscal, and reputational motives in a laboratory experiment. In the experiment, entrepreneurs choose between a conventional investment opportunity or […]