Effect of Green Finance Awareness on Sustainable Investment Decisions: Mediating Role of Environmental Concern
DOI:
https://doi.org/10.55737/trt/v-iv.248Keywords:
Green Finance Awareness, Sustainable Investment Decisions, Environmental Concern, Sustainable Finance, Responsible Investment, ESG InvestingAbstract
As sustainable development and environmental protection become more prominent, more people are interested in the factors which affect their sustainable investment behavior. This research aims to determine how the awareness of green finance affects the decisions of sustainable investments and to find out if it has a mediator effect on environmental concern. The objective of this study is to investigate the effect of enhanced awareness of green financial products, sustainable investment opportunities and concepts of environmental finance on investment decisions that are good for the environment. A quantitative research design was employed, and data were gathered from 300 respondents; investors, banking customers, business students, and financial professionals were obtained through the use of a structured questionnaire with a five-point Likert scale. Data collected were analyzed descriptively and analyzed using the Statistical Package for Social Sciences (SPSS) with reliability test, correlation test, regression test, and mediation test. The results show that the awareness of green finance exerts a significant positive impact on sustainable investments and environmental concerns. The study highlights the significant role of environmental concerns in sustainable investments. It finds that green finance awareness has both direct and indirect effects on sustainable investment decisions, mediated by environmental concern. The findings emphasize the importance of financial literacy and environmental values for responsible investing, adding empirical support to the literature on sustainable finance regarding the mediating role of environmental concern. The results have practical implications for policy makers, financial institutions and educators interested in fostering the adoption of sustainable investment practices and encouraging long-term environmental and economic sustainability.
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