JJEM: Special Edition 4 (May 2025)
JJEM: Special Edition 4 (May 2025)
2025-05-31
The Theory of Planned Behavior and Green Investment A Behavioral Perspective on Individual Investors
Mr. Manoj Kumar S, Dr. Sushma R, Dr. Vinay H V
Countries around the world are actively developing strategies and implementing initiatives to transition their financial systems toward sustainability and achieve net-zero targets by 2050. This green transition involves promoting green finance and fostering investments that support environmentally sustainable projects. Governments are focusing on creating a conducive ecosystem and building infrastructure to attract green investments. However, understanding the factors influencing investors' decision-making processes has become a significant area of research. In this article, we explore green investment decision-making from a behavioral finance perspective, utilizing the Theory of Planned Behavior for examining the factors shaping investment choices during the decision-making process. The findings show Investment knowledge was found to play a crucial role in strengthening the nexus between positive attitudes, perceived controlled behavior, and participation. However, its effect on subjective norms was minimal, indicating that while knowledge enhances psychological motivators of investment, it does not affect social influences. These findings highlight the importance of psychological and contextual factors such as attitudes, norms, and perceived control in shaping green investment decisions.
Green Investment, Behavioral Finance, Theory of Planned Behavior, Investors Perspective