This study aims to uncover how different factors such as environmental consciousness (EVC), financial knowledge (FK), perceived risk (PR), attitude (AT), green self-efficacy (GSEF), subjective norms (SN) and green investing intentions (GII) impact green investing behaviour (GIB). In addition, it examines how GII moderates the relation between AT, GSEF, SN and GIB.
This research used the hypothetico-deductive framework to achieve the research objectives, using a cross-sectional data collection method. The target population comprised Indian retail investors engaged in green investing, with the ideal sample involving adults (aged 18 and above). Furthermore, to test the proposed hypothesis and explore relationships, the study used structural equation modelling.
The findings indicate that EVC, FK and PR influence AT towards green investments, and each AT, GSEF and SN all influence GIB. However, SN demonstrates a negative effect compared to the positive effects of AT and GSEF in driving GIB. In addition, GII moderates the relation between AT, GSEF, SN and GIB.
The study offers practical guidance to asset management companies, financial advisors, distributors and regulators by highlighting the need for green systematic investment plans (SIPs) and environmental, social and governance starter products, simplified risk-return and product comparison tools, investor suitability profiling for green products, standardised disclosures, stronger anti-greenwashing safeguards and investor-awareness initiatives through stock exchange board of india (SEBI) and association of mutual funds in India (AMFI) channels.
This research extends the theory of planned behaviour framework by incorporating additional predictors of GIB. The research uses the GSEF measure instead of using the general concept of self-efficacy. Furthermore, it is among the earliest academic inquiries to investigate GII as a moderating variable between investors’ AT, GSEF, SN and GIB, thereby augmenting its originality and contribution to the field. By addressing the research gap on GII and GIB in developing nations, this study offers a thorough comprehension of investor predispositions towards green investments.
