WHY DO SOME YOUNG INVESTORS IN INDONESIA INTEGRATE SUSTAINABLE INVESTMENT IN THEIR PORTFOLIO?

• Main Author: Dwinda Syahfi, Salsabila
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/67993
• Institution: Institut Teknologi Bandung

Young investors in Indonesia face an uptrend of awareness toward sustainable investment (SI) especially in this era where critical issues such as climate change is major. It is crucial to understand their motivations and interest during their complex decision-making process regarding the company’s ESG’s issues in their investment activities. Hence why, the question arises “Why do some young investors in Indonesia integrate sustainable investment in their portfolio?” remains largely unresolved. Previous research is still limited when it comes to non-professional individual investor’s financial behavior. Therefore, this study builds hypotheses that are tested through online surveys conducted in Indonesia and analyzed using statistical software SPSS to gain insights on the correlation of the investor’s decision-making process in SI. The results show a strong positive influence on investor’s financial literacy with their sustainability information and the usage of negative screening strategy towards their SI decision. Whilst a strong negative towards herding behavior, which implies young investors have significant personal attitudes toward environmental, social and governance concerns in the company that they invest in. The research contributes to studies on young individual investors' decision-making, especially their way of diversifying their portfolio. It examines the factors that influence the usage of sustainability data and the choice to invest in sustainable businesses.