As you sow, so shall you reap: Assessing drivers of socially responsible investment attitude and intention

Garg, Aashish; Goel, Pooja; Sharma, Anuj; Rana, Nripendra P.

doi:10.1016/j.techfore.2022.122030

Cited by 22 publications

(32 citation statements)

References 111 publications

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“…Findings imply that because sustainability is gaining international attention, investors could expect stronger financial returns from such companies than from conventional investments (Nilsson, 2008). Investors should see these investments (ESG compliance stocks) like any other investment opportunity (Garg et al , 2022). Investors favour companies that contribute to society and engage in ethical behaviour, as well as those that communicate environmental concerns in their mission statements (Garg et al , 2022).…”

Section: Discussionmentioning

confidence: 99%

“…Investors should see these investments (ESG compliance stocks) like any other investment opportunity (Garg et al , 2022). Investors favour companies that contribute to society and engage in ethical behaviour, as well as those that communicate environmental concerns in their mission statements (Garg et al , 2022). This argument is consistent with the findings of Kim et al (2020), who argue that consumers prefer long-term relationships with companies that practice social responsibility.…”

Section: Discussionmentioning

confidence: 99%

“…Egoistic values, which only prioritize social responsibility if they expect financial gain, are at odds with the decision to invest responsibly (Brodback et al, 2019). Motives to invest in SRI were positively linked with expectations of financial benefits from SRI (Garg et al, 2022). According to the findings of these studies, there is a relationship between economic concern (egoistic value) and the attitude and intentions of investors, which has led to hypothesizing the following:…”

Section: Economic Concern (Egoistic Value) and Investor's Attitude An...mentioning

confidence: 99%

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Investor’s values and investment decision towards ESG stocks

Raut

Shastri

Mishra

et al. 2023

RAF

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Purpose This study aims to investigate factors that influence the attitudes and intentions of investors towards environmental, social and governance (ESG) stocks in the presence of perceived risk as a moderator. Design/methodology/approach Data was collected through an online survey method from 341 investors with more than three years of investing experience. Smart PLS was used to analyse the data using two-stage structural equation modelling. First, a measurement model was performed for construct reliability and validity, followed by path analysis (structural model) for hypothesis testing and overall model predictability. Findings The findings show that both environmental concern (altruistic value) and economic concern (egoistic value) are crucial for the attitude and intention of investors to invest in ESG-backed stocks; however, environmental concern was found to be a more significant predictor of their behaviour, showing evidence of pro-environmental values in the decision-making of utility-seeking individuals. No significant impact of perceived risk was evident as a moderator of the relationship between attitude and intention towards ESG stocks. Practical implications The study's findings have implications for fund managers, policymakers, and the government. Values as antecedents were found to be influential in shaping investors’ attitudes and intentions towards the environmental cause. Fund managers could include more ESG-compliant companies in their portfolios, and the government can play an important role in encouraging investors by providing financial incentives. Corporates should also take strategic steps to adopt green production processes to secure long-term, sustainable capital funding. Originality/value To the best of the authors’ knowledge, there has been no research done in the field of ESG investing that takes into account the values (both altruistic and egoistic) of investors as potential antecedents of their attitudes and intentions.

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Section: Discussionmentioning

confidence: 99%

Section: Discussionmentioning

confidence: 99%

Section: Economic Concern (Egoistic Value) and Investor's Attitude An...mentioning

confidence: 99%

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Investor’s values and investment decision towards ESG stocks

Raut

Shastri

Mishra

et al. 2023

RAF

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“…The understanding of these motivations, particularly the intrinsic and extrinsic drivers, among advisors specializing in ESG funds, assumes paramount signi cance in uncovering their behavioral proclivities. A substantial body of scholarly literature suggests that both economic and noneconomic rationales exert substantial in uence over responsible investment choices, as elucidated by (Garg, Goel, Sharma, & Rana, 2022) In the context of this study, consciousness surrounding ESG principles can be viewed as a potent intrinsic stimulus, aligning harmoniously with individuals' inherent motivations and addressing the relatedness need highlighted within the SDT paradigm. The perceived nancial performance of ESG funds, on the other hand, fundamentally embodies the competence dimension of SDT.…”

Section: Theoretical Framework and Research Hypothesismentioning

confidence: 98%

ESG Consciousness in Mutual Fund Advisory: Examining Attitudes, Intentions, and Moderating role of Fund Fundamentals and Herding Bias

Tiwari,

Sharma,

Deka

2024

Preprint

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This study explores the relationship between mutual fund advisors' ESG consciousness, their attitude towards ESG funds, and their intention to advise ESG funds, while also considering the moderating influence of fund fundamentals and herding bias. Data was collected from 234 Indian financial advisors in the mutual fund domain using a Likert scale questionnaire. Amos based Structural Equation Modeling (SEM) was employed for data analysis. The results indicate a significant connection wherein advisors with heightened ESG consciousness tend to hold more positive attitudes toward ESG funds, which, in turn, positively predict their intention to provide advisory services related to ESG funds. Furthermore, fund fundamentals, encompassing financial and non-financial attributes of ESG funds, play a crucial moderating role, particularly when advisors perceive these fundamentals as robust and positive. Notably, herding bias among advisors also positively moderates the relationship, indicating that advisors with a greater inclination to follow industry trends and peer behavior are more influenced by their positive attitudes, resulting in a stronger intention to recommend ESG funds. These findings have implications for investors and advisors alike, shedding light on the dynamics of ESG-conscious investing in emerging markets and its potential impact on financial decisions.

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“…Interestingly, such indices outperformed the BSE-based SENSEX during the coronavirus disease-2019 pandemic (Maiti, 2021). The continuous rise in the number of SRI and similar funds, as well as Indian investors' favorable attitude toward them, can be attributed to investors' demand for both financial and nonfinancial objectives (Garg et al, 2022). Since SRI securities are selected not only for their expected risk and return but also for social, environmental, and governance aspects, it is imperative and motivates to explore nonfinancial motives or non-economic concerns, such as ethical, religious, and ESG variables along with the financial or economic concerns of investors.…”

Section: Introductionmentioning

confidence: 99%

Do Values Predict Socially Responsible Investment Decisions? Measuring the Moderating Effects of Gender

Raut

Kumar

2023

Journal of Emerging Market Finance

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This study examines investors’ pro-environmental investment intentions by measuring the effect of economic concern (egoistic value) and environmental concern (altruistic value) on attitudes toward socially responsible investment (SRI). A self-administered structured questionnaire was used to collect data from 469 investors using a purposive sampling technique and analyzed using two-step structural equation modeling. Results show that both altruistic and egoistic values were significant predictors of a positive attitude toward SRI, portraying the greater environmental concern of investors. Additionally, male investors motivated to invest in SRI are more concerned about environmental well-being than their counterparts, that is, female investors. By analyzing values as antecedents of attitudes toward SRI, the findings of this study add a new dimension to the belief system of young investors. JEL Classifications: A13; D19; G1; G4

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As you sow, so shall you reap: Assessing drivers of socially responsible investment attitude and intention

Cited by 22 publications

References 111 publications

Investor’s values and investment decision towards ESG stocks

Investor’s values and investment decision towards ESG stocks

ESG Consciousness in Mutual Fund Advisory: Examining Attitudes, Intentions, and Moderating role of Fund Fundamentals and Herding Bias

Do Values Predict Socially Responsible Investment Decisions? Measuring the Moderating Effects of Gender

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