Sustainable investment perception influence in investment decision

Abstract

Indonesian investors are aware of the significance of Environmental, Social, and Governance (ESG) concept in influencing the enduring success of organizations. This leads to the importance of studying investment decisions that consider ESG factors in investment decisions. This study investigates the dynamic relationship between demographic parameters, considered as control variables, and their potential contribution to the influence of the perception of sustainable investment and risk tolerance on ESG-considered investment decisions. This study employs a quantitative method by conducting a survey to retail investors in Indonesia. The findings indicate that these control variables do not have any influence. Significantly, perceptions of sustainable investment have been proven to influence ESG-considered investment decisions. Conversely, risk tolerance does not affect investment decisions considering environmental, social, and governance (ESG) factors. This study highlights the significance of customized investment strategies to cater to the varying preference of investors while also underlining the necessity of conducting more research on including ESG disclosures. Overall, it provides valuable insights into the intricate correlation between demographic characteristics and ESG investments in the IDX, emphasizing the pivotal influence of investors' perspectives on creating sustainable practices.