Unraveling the Determinants of Social Responsibility Investment Intensions

Abstract

For better comprehension of socially responsible investment (SRI) in Pakistan, this study examines the determinants that have an impact on the investment intentions of SRI. In general, this research is to aim to examine the main determinants that impact an investor’s choice to undertake an investment in socially responsible projects. There are four independent variables considered: environmental concern, attitude towards socially responsible investing, perceived consumer effectiveness, and expected return. For collecting data, random questionnaires were sent in excess of 600 in various cities of Pakistan and 350 questionnaires were completed by the respondents. Data from the questionnaires was computed by "Partial least square structural equation modeling (PLS-SEM)" using SmartPLS software. The data collected was processed using SmartPLS by descriptive analysis and reliability analysis in order to measure the findings. The result of study shows that concern about the environment, perceived consumer efficacy and a socially responsible investment attitude are significantly positively related to the intention to invest in the SRI. In contrast, the expected return does not show a significant relationship with investment intention, suggesting that financial gain may not be the primary motivator for socially responsible investors