Green stock investment preferences among adult investors in east Malaysia

Abstract

Abstract In light of increasing concerns about environmental issues and a heightened focus on green stocks prompted by global warming and the COVID-19 pandemic, this research study aims to analyse the determinants influencing the investment intentions of working adults in Sarawak, Malaysia, regarding green stocks. This study emphasises comprehending how factors such as attitudes, social influences, affect, and perceived customer effectiveness impact the investment intentions of working adults in green stocks. This research adopts a quantitative methodology, employing hypothesis testing to analyse data obtained from 150 respondents in East Malaysia, who were selected using a convenience sampling technique and responded through a Google Form. Data analysis was conducted using SPSS version 27, with a comprehensive assessment of variable validity and reliability through various tests. Six hypotheses were formulated to establish a significant correlation between the dependent variable intention to invest in green stocks and the independent variables’ social factors, attitude, affect, perceived customer effectiveness, and financial literacy. Four independent variables significantly influence the dependent variable when investing in green stocks. Further, perceived customer effectiveness directly impacts investors’ intentions. Thus, financial literacy indirectly influences the intention to invest in green stocks through its mediation with attitude. The findings result in practical implications related to the determinants of green stock investment intention among working-age adults in Sarawak. To begin with, this study contributes to the body of knowledge concerning green investments by investigating the factors influencing the Sarawak residents’ intention to invest in green stocks, utilising the theory of interpersonal behaviour. Previous research has predominantly relied on the theory of reasoned action and the “theory of planned behaviour” to elucidate the factors impacting green investment intention. Therefore, this study’s adoption of the theory of interpersonal behaviour offers a special perspective and potential reference for future researchers. The knowledge gained from this study is pertinent to a broad spectrum of stakeholders, encompassing policymakers, government, professionals, and educators. It offers valuable insights that can shape decision-making and the development of strategic initiatives within green investments.