The Impact of Framing on Impact Investing

Impact investors are faced with the issue of risk and return evaluation on both scale of financial performance and social performance. The study extends understanding of the relationships between investor perception of risk, of understanding, and financial decision-making into the inherently context of impact investment. Through the lens of prospect theory, an instrument for data collection was designed to evaluate the effects of outcome dominant, social outcome dominant, and hybrid outcome on an investor‘s perception of risk, sense of understanding, and capital decisions. This research found that variability in outcome framing an investor‘s capital allocation decision but does not affect the of risk or sense of understanding. These findings contribute to the of how the framing of compound outcomes with both financial moral implications affects the decision-making choice process of .