Dwi Martutiningrum, Putra Endi Catyanadika

Exploring SRI Intention In Young Investors: Benefit, Norms, and Government Support

Introduction

Exploring sri intention in young investors: benefit, norms, and government support . Study explores factors influencing Sustainable Responsible Investment (SRI) intention in young Indonesian investors (Millennials & Gen Z), examining benefits, norms, and government support.

Abstract

Sustainable Responsible Investment (SRI) has gained greater recognition as young investors show increased interest in green issues, incorporating environmental, social and governance (ESG) criteria alongside financial objectives in response to growing concerns about climate crisis, social disparity and governance. This study examines factors influencing SRI intention among young prospective investors in Indonesia by integrating Environmental and Social Concern (ESC), Subjective Norm (SN), and Perceived Government Intervention (PGI), with Perceived Benefit (PB) as both a predictor and mediator. A total of 183 responses were collected through an online questionnaire targeting Indonesian Millennials and Generation Z. Data were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM). The results reveal that PB plays a pivotal role in bridging ESC, SN, and PGI to Pro-Environmental Investing Intention (PEII). These findings imply that perceptions of benefit are essential to fostering sustainable investment intentions. The study contributes by enriching the investment behavior pattern of young generations in the SRI context and offers practical implications for designing policies to increase SRI participation among youth.

Review

The paper "Exploring SRI Intention In Young Investors: Benefit, Norms, and Government Support" addresses a highly pertinent and timely topic concerning the increasing interest in Sustainable Responsible Investment (SRI) among young investors. The study specifically investigates the factors influencing SRI intention among Indonesian Millennials and Generation Z, integrating Environmental and Social Concern (ESC), Subjective Norm (SN), and Perceived Government Intervention (PGI), with Perceived Benefit (PB) notably serving as both a predictor and mediator. Utilizing an online questionnaire to gather 183 responses, the authors employed Partial Least Squares Structural Equation Modeling (PLS-SEM) for data analysis. A key finding is the pivotal mediating role of Perceived Benefit in linking ESC, SN, and PGI to Pro-Environmental Investing Intention (PEII), underscoring its importance in fostering sustainable investment intentions. This work offers valuable insights into the investment behavior patterns of younger generations within the SRI context. This study's strengths lie in its timely focus on SRI within the burgeoning demographic of young investors, particularly in the under-researched Indonesian context. The theoretical framework is commendably robust, moving beyond direct relationships to explore the nuanced interplay of environmental concern, social norms, and government intervention through the critical lens of perceived benefits. The identification of Perceived Benefit as a significant mediator is a particularly strong contribution, enriching our understanding of the psychological mechanisms driving SRI intentions. This finding has clear practical implications, suggesting that initiatives aimed at promoting SRI should effectively communicate the tangible and intangible benefits to prospective investors. By applying PLS-SEM, the authors provide a statistically sound analysis, contributing meaningfully to the literature on investment behavior and behavioral finance. While the study offers significant contributions, a few limitations warrant consideration and could inform future research. The sample size of 183, while sufficient for PLS-SEM, could be expanded to enhance generalizability and statistical power. Furthermore, as an online questionnaire-based study, it inherently relies on self-reported intentions, which may not always perfectly translate into actual investment behavior. Future research could benefit from longitudinal designs to capture changes in intention and behavior over time, or by incorporating objective measures of SRI participation where possible. Exploring a wider range of moderating factors, beyond the current scope, could also provide deeper insights. Despite these considerations, this research provides a solid foundation for understanding SRI intention among young investors and serves as an important reference for both academics and policymakers seeking to cultivate more sustainable financial markets.

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