Environmental, Social and Governance (ESG) and Investment Decision in Bangladesh
Sayema Sultana (),
Norhayah Zulkifli () and
Dalilawati Zainal ()
Additional contact information
Sayema Sultana: Department of Accounting, Faculty of Business and Accountancy, University of Malaya, 50603 Kuala Lumpur, Malaysia
Norhayah Zulkifli: Department of Accounting, Faculty of Business and Accountancy, University of Malaya, 50603 Kuala Lumpur, Malaysia
Dalilawati Zainal: Department of Accounting, Faculty of Business and Accountancy, University of Malaya, 50603 Kuala Lumpur, Malaysia
Sustainability, 2018, vol. 10, issue 6, 1-19
As a key facet of sustainable development, environmental, social and governance (ESG) discretion on stock market investment decision is gaining prevalence following the global financial crisis. ESG considers the sustainable return, risk reduction, and accountability aspects of investments. This study is an exploration of the individual stock market investors’ preferences for ESG issues and the influence that purpose of investment has on investment decision-making, by testing the investment horizon as a moderator. The theoretical background was taken from the theory of planned behavior (TPB), goal setting theory (GST), and the behavioral asset pricing model (BAPM). The study uses the sequential mix method of research, starting with an interview followed by a survey, which was conducted among individual stock market investors in Bangladesh, using simple random sampling. Structural equation modeling (SEM) analysis was carried out using Warp PLS version 6.0. The key findings of this study delineate the effect of ESG issues and the purpose of investment on investment decision-making. The contribution of the study signifies the moderating role of the investment horizon, which confirms the importance of the long-term horizon as a time and risk diversification factor. The sparse utilization of the United Nations Global Compact (UNGC) (2004) and Thomson Reuters Corporate Responsibility Index (TRCRI) (2013) as measurement scales in this study is mentioned. This study has made practical contributions for managers, investors, and regulators.
Keywords: ESG; investment decision; the purpose of investment; investment horizon; stock market; sustainable development (search for similar items in EconPapers)
JEL-codes: Q Q0 Q2 Q3 Q5 Q56 O13 (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations Track citations by RSS feed
Downloads: (external link)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:gam:jsusta:v:10:y:2018:i:6:p:1831-:d:150186
Access Statistics for this article
Sustainability is currently edited by Prof. Dr. Marc A. Rosen
More articles in Sustainability from MDPI, Open Access Journal
Bibliographic data for series maintained by XML Conversion Team ().