Investing in our planet: Examining retail investors' preference for green bond investment

Shivam Azad, S L Tulasi Devi and Anand Kumar Mishra

Business Strategy and the Environment, 2024, vol. 33, issue 6, 5151-5173

Abstract: The green bond has emerged as an important financial instrument to advance environmentally friendly projects. While institutional investors have shown ample interest in green bonds, retail investors have lagged in their adoption. This study intends to examine the determinants of retail investors' attitude and intention toward green bond investment, utilizing the theory of planned behavior as the fundamental model and incorporating several context‐specific factors. Data from 506 Indian retail investors, representing the majority of Indian states and union territories (UTs), were collected through multi‐stage stratified random sampling. The PLS‐SEM method, coupled with artificial neural network (ANN) analysis and fuzzy set qualitative comparative analysis (fsQCA), was employed to test the hypothesized relationships, ensure the robustness of outcomes, and derive important practical insights. The findings suggest that intrinsic factors (perceived behavioral control and attitude) are superior predictors of investors' behavioral intentions relative to external factors (government policy support and social influence). Further, for green bonds to receive favorable evaluations from investors, they should display adequate financial cum environmental performance. Investors' attitude is significantly influenced by issuers' ratings and their willingness to pay premiums. Environmental concerns and perceived risk also influence investors' attitude toward green bonds, albeit with relatively lower strength. This study holds significance as it offers crucial implications for researchers, market participants, policymakers, and regulators involved in the development of the green bond market.

Date: 2024
References: Add references at CitEc
Citations:

Downloads: (external link)
https://doi.org/10.1002/bse.3743

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bla:bstrat:v:33:y:2024:i:6:p:5151-5173

Ordering information: This journal article can be ordered from
http://onlinelibrary ... 1002/(ISSN)1099-0836

Access Statistics for this article

Business Strategy and the Environment is currently edited by Richard Welford

More articles in Business Strategy and the Environment from Wiley Blackwell
Bibliographic data for series maintained by Wiley Content Delivery ().