This work is licensed under a Creative Commons Attribution 4.0 International License .
Investor Perception Towards ESG Investing: A Behavioural Study
T. Meghana, R. Hadassa, B. Muni Babu
Department of MBA, Andhra Loyola College, Vijayawada, Andhra Pradesh, India
Abstract
ESG investing is an investment strategy that involves investing in companies based on Environmental, Social, and Governance factors along with financial performance to achieve sustainable and financial results. This study aims to investigate the perception of investors on ESG investing and its behavioural factors such as awareness, attitude, preference, and psychological factors. The primary research was conducted on 100 investors in Vijayawada to study the demographic factors that influence ESG investing decisions such as age, gender, education level, occupation, and income levels. From the study, it is clear that despite the awareness of ESG investing, there are behavioural biases and knowledge gaps among investors. However, there is a positive attitude towards ESG investing based on financial and social benefits. Among demographic factors, only age is considered to be statistically significant for ESG investing decisions. On the other hand, gender, occupation, and income levels are not considered to be statistically significant factors for ESG investing decisions. Besides, risk and environmental factors significantly influence ESG investing decisions. Thus, behavioural factors and awareness are very important for ESG investing decisions.
Keywords: ESG Investing, Investor Perception, Sustainable Investing, Behavioural Finance, Investor Awareness.
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