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Journal of Information and Optimization Sciences

(Since 1980)
Hybrid ·Peer-reviewed·ISSN (Online): 2169-0103·ISSN (Print): 0252-2667

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Monthly Journal: Publishes theoretical and applied research on topics in information and optimization sciences.

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Journal of Information and Optimization Sciences
Open Access Research Article

Environmental, social, governance (ESG) & sustainable finance : Emergence of new era of investing

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* Corresponding author · click or hover a name for details

pp. 1543–1562Vol. 44Issue 8November 2023DOI: 10.47974/JIOS-1475XML
Published Online:
13 Jan 2024
Article type:
Research Article
Language:
EN
Article no.:
JIOS-1475
Pages:
1543–1562

Abstract

Since the financial crisis, investors have given greater regard to environmental, social, and governance (ESG) factors when making stock market choices. To achieve sustainable development, these elements are fundamental. This research paper aims to assess the impact of risk profile, investing decision-making, and asset familiarity on the preferences of individual stock market investors for ESG investing by using investment behaviour as a mediator. According to the paper, there is a growing trend in investments that consider environmental, social, and governance (ESG) concerns. The study’s methodology included secondary data sources as well as primary data obtained using a Google form poll, which yielded 400 legitimate responses. To examine the sample size, the programme G*Power 3.1.9.2 was used. A total of 400 responses were included into the research, with the programme determining a sample size of 262 individuals. People from all throughout India filled out the survey. To construct the structural equation model, the Smart PLS programme was used. The validity and reliability of the constructs were evaluated using Confirmatory Composite Analysis. Use of confirmatory composite analysis allowed for evaluation of the constructs’ dependability. With Cronbach’s Alpha, Composite Reliability, and Rho A values of 0.7, the validity and reliability tests utilised in this study were powerful. The study’s results provide light on how ESG factors would influence investing choices in the long run. When drafting legislation pertaining to the stock market, authorities would have the option to include investor preferences.

Keywords

ESGRisk profileAssets familiarityInvestment behaviour

Subject Classifications

60K37

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