The conflict of “Dirty Money” is a real-world problem that companies and individuals deal with how to use dirty money and whether it may be perceived as being willing to engage in unethical or illegal activities, which can damage their reputation and relationships with stakeholders (Tasimi & Gross, 2020). It also emphasizes that Dirty Money is a nascent literature, providing a path to future research.

Using Dirty Money in decision-making can have serious consequences, from an ethical point of view. Dirty money can be relevant to behavioral economics, for example, research in behavioral economics has shown that people are more likely to engage in unethical or illegal behavior if they believe that others are doing the same (Tang et al., 2018).

Basically, Money is a good asset, but it can be polluted by companies’ activities. Dirty money could be connected to the regular activities of companies whose side effects are unethical or harmful to the environment.

Another factor extensively studied in the literature is the Environmental, Social, and Governance (ESG) criteria, which assesses companies based on their environmental impact, social responsibility, and corporate governance practices. Wide literature shows the factors of ESG taken into account in financial decisions by financial institutions and the impact on the sustainability of financial systems (Ziolo et. al, 2019).

Previous research deals with dirty money in the meaning of stolen money, beliefs about the consequences of accepting stolen money, donate stolen money and similar examples. This research examines the attitudes toward investments involving "dirty money" in light of economic considerations.

Investors are likely to invest less in companies associated with Dirty Money, despite the potentially higher yield from their stocks. This is because investing in such companies carries significant ethical and reputational risks, which can result in negative consequences for the investor's own reputation and business interests.

Therefore, investors often prefer to invest in companies that have a clean and ethical record, even if the potential yield from their stocks may be lower. Thus, our hypothesis is:

Investors will invest less in companies with Dirty Money, even though the stock yield is higher.

Investors' behavior depends on their perception of Dirty Money and stock yield. This implies that the inclination to invest in companies associated with dirty money and the share yield size reaches an equilibrium point. thus, our hypothesis is:

Investors’ behavior depends on Efficient Frontier which represents the trade-off between the level of Dirty Money and shares yield.

This research will utilize a Prolific experiment involving participant fees, synthetic companies, and treatments considered the level of "Dirty Money" in companies. In the experiment, the participants will receive information about the measure of companies’ environmental performance (the level of "Dirty Money") and share yield. Participants will be tasked with allocating their investment among these companies, simulating the investment of their pension fund across different shares of the companies.

Results: In Process.