Willingness to Sacrifice to Optimize Financial and Non-Financial Goals in Ethical Investing

Farah Amalia, Harjum Muharam and Irene Rini Demi Pangestuti

Economic Studies journal, 2024, issue 8, 114-129

Abstract: Ethical investing has recently been on the rise in popularity. Nevertheless, at the same time, the investment generates lower returns than its competitors. So, ethical investors have to sacrifice some returns to keep investing ethically. This study examines the direct influence and mediation of willingness to sacrifice variables on ethical investment decisions. The method used is Structural Equation Modelling Partial Least Square (SEM-PLS). Results show that willingness to sacrifice influences ethical investment decisions positively and significantly. Furthermore, willingness to sacrifice has been shown to mediate the influence of non-financial motives on ethical investment decisions. It shows a shift in behaviour, and investors are willing to ignore some of the returns obtained to achieve non-financial goals.

JEL-codes: G10 G11 G23 G40 G41 (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:bas:econst:y:2024:i:8:p:114-129

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