Analysis Of Factors Affecting Investor’s Intention To Invest In Sustainable Investment

Abstract

The field of sustainable finance has garnered increasing attention in recent years as investors seek to align their financial goals with environmental, social, and governance (ESG) considerations. This study explores the factors influencing investors' intentions to invest in sustainable options, drawing upon a comprehensive analysis of various determinants and their implications for sustainable investment practices. Utilizing a combination of regression analysis, t-tests, and hypothesis testing, the study examines the relationships between key variables, including attitudes, subjective norms, perceived behavioral control, environmental factors, social factors, governance, collectivism, materialism, and religiosity, and investors' intentions to invest sustainably. The findings reveal several significant relationships that shed light on the drivers of sustainable investment intentions. Attitudes towards sustainable investment emerge as a critical determinant, with investors exhibiting more favorable attitudes showing a greater propensity to invest in sustainable options. Likewise, perceived behavioral control plays a pivotal role, indicating that investors' confidence in their ability to engage in sustainable investment practices positively influences their intentions to do so. Moreover, environmental factors, social factors, governance practices, collectivism, and religiosity exhibit significant associations with investors' intentions to invest sustainably, underscoring the importance of external and internal factors in shaping investment decisions. However, subjective norms and materialism do not demonstrate significant relationships with sustainable investment intentions, suggesting that social pressures and materialistic tendencies may have limited influence on investors' decisions in this context. Furthermore, demographic variables such as education level, monthly income, and employment status are found to be significant predictors of sustainable investment intentions, highlighting the importance of tailoring investment strategies to different investor profiles. While the study provides valuable insights into the factors driving sustainable investment intentions, certain limitations should be acknowledged. These include the study's crosssectional design, sample size, measurement issues, and scope of variables, which may impact the generalizability and validity of the findings. Additionally, contextual factors and self-report bias could influence the interpretation of results and warrant further investigation. In conclusion, this study contributes to the growing body of literature on sustainable finance by elucidating the determinants of investors' intentions to invest in sustainable options. By understanding the factors influencing sustainable investment decisions, financial institutions, policymakers, and stakeholders can develop targeted strategies to promote sustainable investment practices and foster a more sustainable financial system.