ETHICAL KNOWLEDGE AND RESPONSIBLE INVESTMENT DECISION: A STUDY OF UNDERGRADUATE STUDENTS

• Main Author: DERMAWAN (19015160), DICKY
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/26640
• Institution: Institut Teknologi Bandung

In the current investment boom, there is an increasing the number of demand from certain who <br /> <br /> considered not only that their investments be profitable, but they also meet certain nonfinancial <br /> <br /> criteria. From the available literature, it appears that there is a lot of disagreement <br /> <br /> among investors, firms, NGOs and academicians about what ‘ethical investment’ is. It has been <br /> <br /> widely observed in many studies that financial motives encourage investment decision with an <br /> <br /> intensity much greater than the moral values that they may have. Socially Responsible <br /> <br /> Investment (SRI) has emerged as an important issue and drawn the attention of large number <br /> <br /> of investors. These investors seem to be guided by a sense of moral duty to balance pursuit of <br /> <br /> wealth with ethical or environmental concern. School of Business and Management, Institut <br /> <br /> Teknologi Bandung (SBM ITB) as business school has critical roles in order to prepare leaders <br /> <br /> to make financial successful and driven by values. Business school has some responsibility. <br /> <br /> For developing students’ ability to discover and apply values that can improve the future of our <br /> <br /> world. However, the factors that lead student to invest socially responsible are not well <br /> <br /> understood, especially in SBM ITB. This study aims to analyse the investment pattern of <br /> <br /> student towards the firms engaged in manufacturing ethical and unethical practices across the <br /> <br /> different demographics factors and to find out the factors that significantly affect ethical <br /> <br /> investment behaviour in investment funding. The primary data gathered by distributing a <br /> <br /> survey through questionnaire. The total numbers of respondents in this research are 100 <br /> <br /> respondents. For analysis technique this study performed descriptive, ANOVA, ordinary least <br /> <br /> squares regression and logistic regression. Findings show that class, gender, and allowance <br /> <br /> significantly affects ethical investment decision. Allowance found have positive and significant <br /> <br /> influence on ethical investment behaviour. The study also found that student with higher level <br /> <br /> of allowance, higher class, and female tended to make ethical decision.