The study aims to identify the preferred factors among economic, social and governance (ESG) that influence the decisions of Pakistani retail investors.
The researchers collected the required responses through self-administrative comparison questionnaires from a sample of 512 individual investors of Pakistan Stock Exchange (PSX). To test the study’s hypothesis, the researcher applied a fuzzy analytic hierarchy process (AHP).
The findings indicate that the most crucial dimension for an individual investor in Pakistan when making investment decision is environmental criteria. However, investors prioritize governance second and social factors third, according to fuzzy AHP estimations.
The findings are applicable and generalizable to the financial equity market of Pakistan for an individual investors only. Future research may explore ESG priority among institutional investors.
The study enhances the theory of responsible investment by incorporating the ESG dimensions that influence individual investors’ decisions in Pakistan. It holds practical implications for individual investors, investment/financial advisors, companies, regulatory authorities, stockbrokers, investment firms and society.
The study contributes to extending the theory of socially responsible investment and fills a research gap in the domain of ESG dimensions as a priority for investment decisions by individual investors in Pakistan.
The peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-10-2023-0791
