Predicting individuals’ intention to make socially responsible investments

: application of an extended theory of planned behavior

Abstract

During the past decade, the finance sector has gone through significant changes: Sustainability, as a major trend, led to the development of socially responsible investment products, and simultaneously, individual investors became a major force in the stock market. However, little is known about the internal factors affecting individuals’ decisions to make socially responsible investments. This study used the theory of planned behavior and extended it with the constructs of moral norm, environmental concern, and perceived consumer effectiveness to investigate which constructs determine individuals' intention to make socially responsible investments. Research data has been gathered using an online questionnaire to enable the investigation. The results of the conducted regression analysis suggest that attitude, subjective norm, moral norm, and environmental concern significantly influence individuals' intention to make socially responsible investments. The implications of those findings for public policymakers and the different actors from the private sector are discussed. During the past decade, the finance sector has gone through significant changes: Sustainability, as a major trend, led to the development of socially responsible investment products, and simultaneously, individual investors became a major force in the stock market. However, little is known about the internal factors affecting individuals’ decisions to make socially responsible investments. This study used the theory of planned behavior and extended it with the constructs of moral norm, environmental concern, and perceived consumer effectiveness to investigate which constructs determine individuals' intention to make socially responsible investments. Research data has been gathered using an online questionnaire to enable the investigation. The results of the conducted regression analysis suggest that attitude, subjective norm, moral norm, and environmental concern significantly influence individuals' intention to make socially responsible investments. The implications of those findings for public policymakers and the different actors from the private sector are discussed.

Date of Award	4 May 2022
Original language	English
Awarding Institution	Universidade Católica Portuguesa
Supervisor	Cristina Soares Pacheco Mendonça (Supervisor)