ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) AND INVESTMENT DECISION IN THE MANUFACTURING SECTOR OF PAKISTAN

Abstract

PurposerThe objective of the study is to analyze the impact of environmental i issues, governance issues and purpose of investment Karachi, Pakistan. In addition, the moderating effect of investment horizon into consideration by the study. issues, social on individuals’ investment decision in was also taken Methodology:Total 304 sample responses collected from the Karachi city of Pakistan using puiposive sampling technique. Five-point Likert scale questionnaire was used for data were collection and PLS-SEM has been used for data analysis using SmartPLS version 3.2.8. Findings:Environmental issues and social issues have negatively significant impact on investment decision while purpose of investment has positive impact on investment decision and as the purpose of investment has two categories i.e. regular income and savings; the positive relationship postulated that respondents have saving purposes for their investment rather than regular income. Lastly, governance issues have found negative insignificant relationship with investment decision. Implications:If managers want to grab more and more investments from different investors, they need to build good governance in the organization. Managers have to build strong investment purpose and propose it before the investors. The more the investment purpose is strong, the more clear vision would be for the investors and thus more investments can be grabbed in the organization.