University of Twente Student Theses
The Impact of Altruistic Motivation for Environmental Well-Being on Young Individual Investors’ Preferences for Sustainable Investing
Al Dayeh, Saif (2024) The Impact of Altruistic Motivation for Environmental Well-Being on Young Individual Investors’ Preferences for Sustainable Investing.
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| Abstract: | Irresponsible corporate activities cause significant harm to the environment and society, a response to this issue is the growth of sustainable investments. Sustainable investments are increasingly implemented by investors to increase returns and avoid investments in companies that cause harm to the environment. In sustainable investments, investors incorporate ESG factors when making investment decisions. Just like any other investment, individual investors' preferences in sustainable investing are affected by a variety of different factors like financial, emotional, or individual biases. However, little is known about how characteristics influence young investors' likelihood of engagement in sustainable investments. Therefore, this research aimed to explore how young individual investors' altruistic motivation for environmental well-being can encourage them to engage in sustainable investing while taking into consideration their risk tolerance and profit motive. The research employed a combination of quantitative and qualitative methods, utilizing a survey for both quantitative and qualitative data collection. The survey was shared online on social media applications, and most respondents were from the age of 18 -25, of which the majority were university students. The survey included 61 participants of which 46 were males and 15 were females. Findings revealed that altruistic motivation for environmental well-being increases the likelihood of engagement in sustainable investing. Conversely, as investors' profit motive increases, the likelihood of engagement in sustainable investment, and altruistic motivation for environmental well-being decreases. furthermore, the analysis showed that risk tolerance had no significant effect on altruistic motivation and the likelihood of engagement in sustainable investing. Moreover, the thematic analysis revealed that altruistic investors derive non-monetary utility from sustainable investing because investors stated that they would feel happy if they invested in sustainable assets. Future research should explore possible ways to increase young investors' altruistic motivation for environmental well-being across different regions. Understanding ways to increase investors' altruistic motivation for environmental well-being allows the identification of methods or practices to implement, hence increase investors' engagement in sustainable investing. |
| Item Type: | Essay (Bachelor) |
| Faculty: | BMS: Behavioural, Management and Social Sciences |
| Subject: | 85 business administration, organizational science |
| Programme: | International Business Administration BSc (50952) |
| Link to this item: | https://purl.utwente.nl/essays/100354 |
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