Factors influencing sustainability investment intentions: an empirical investigation

Abdul Razak, Dzuljastri and Bile, Abdisalam Nor and Mohamed Noor, Siti Fatimah (2024) Factors influencing sustainability investment intentions: an empirical investigation. Labuan E-Journal of Muamalat and Society, 18 (2). pp. 1-13. ISSN 1985-482X E-ISSN ISSN: 2672-7390

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Abstract

This study delves into the determinants of intention for sustainability investment in Malaysia, examining the factors that drive such intentions among 278 Malaysians through a quantitative survey. The research reveals that attitude, subjective norms, perceived behavioural control and financial knowledge have a positive influence on sustainability investment. The findings underscore the pivotal role of attitudes in shaping investment decisions, indicating that a positive attitude toward sustainability correlates with a greater willingness to allocate resources toward sustainable initiatives. Moreover, subjective norms, encompassing social influences and perceived norms, emerged as key drivers, suggesting that when individuals perceive support for sustainability investment from peers and industry leaders, they are more inclined to engage in such activities themselves. Perceived behavioural control, reflecting confidence in one's ability to invest sustainably, is also highlighted as a significant determinant. Individuals and organizations are more likely to invest in sustainability when they feel equipped with the necessary resources, knowledge, skills, and access to opportunities. Furthermore, the study emphasizes the importance of financial knowledge, indicating that individuals and organizations with greater financial literacy are more inclined to engage in sustainable investment practices. Understanding financial concepts enables investors to make informed decisions that align with sustainability goals, contributing to both financial returns and environmental/social objectives. Overall, the study suggests that by fostering positive attitudes, addressing subjective norms, enhancing perceived behavioural control, and promoting financial literacy, Malaysia can create a conducive environment for sustainable investment, nurturing progress toward a more environmentally and socially responsible economy.

Item Type:	Article (Journal)
Uncontrolled Keywords:	Keywords: Sustainability investment, Malaysia, attitude, subjective norms, perceived behavioural control and financial knowledge 
Subjects:	H Social Sciences > HG Finance > HG3368 Islamic Banking and Finance
Kulliyyahs/Centres/Divisions/Institutes (Can select more than one option. Press CONTROL button):	International Institute for Halal Research and Training (INHART)
Depositing User:	Dr Dzuljastri Abdul Razak
Date Deposited:	14 Oct 2024 16:12
Last Modified:	14 Oct 2024 17:06
URI:	http://irep.iium.edu.my/id/eprint/115043

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