While finance models assume investors simply maximize risk-adjusted returns, this paper provides systematic quantitative evidence that symbolic considerations meaningfully shape everyday stock selection. Drawing on two original studies of U.S. retail investors, it estimates the relative importance of symbolic versus financial attributes in stock choice and examines how investors narrate their attachment to stocks they actually own.
A choice-based conjoint experiment shows that investors allocate roughly forty percent of their decision weight to non-financial attributes when these are made salient, with values/identity alignment ranking as the third most important factor after expected return and risk. A companion survey finds that investors report similar identity attachment to a favored stock as to a favored consumer brand, suggesting shares are subject to symbolic consumption much like everyday goods. Cluster analysis further identifies three investor segments: financial-focused (37%), values/meaning-driven (47%), and socially-connected (16%). The findings show that symbolic motives are not confined to spectacular cases like meme stocks or ESG investing, but are a measurable part of ordinary investment behavior.
Authors: Adam S. Hayes, Léna Pellandini-Simányi, Ambreen Tour Ben-Shmuel, Jan-Hendrik Bucher
