WHAT EXPLAINS MILLENNIAL AND GENERATION Z THINKS ABOUT SUSTAINABLE INVESTMENT?

• Main Author: Lestari, Dini
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/72895
• Institution: Institut Teknologi Bandung

Investors around the world are becoming increasingly interested in green and sustainable financing. When making investment decisions, sustainable finance considers environmental, social, and governance (ESG) factors. Millennials and Generation Z are generation sandwiched between old and young generations in Indonesia, which has the largest population. The cohort of these two generations considers their financial goals differently based on factors that may influence them subconsciously and looks for investment strategies that suit their preferences. With the increasing importance of sustainable investment practices in investment decisions, the purpose of this study is to investigate the level of knowledge of Millennials and Generation Z in Indonesia, as well as the determinants of sustainable investment. The study used a quantitative method with a survey questionnaire to assess Millennials and Generation Z's investment behaviour, demographic parameters, and determinant variables connected to sustainable investment in Indonesia. According to the structural equation modelling (SEM) analysis, Informational Behaviour, and Individual Financial Behaviour positively significant correlate with positive performance in order to establish sustainable investing practices. Positive performance has been shown to be favourably strongly correlated with Sustainable Investment, which is positively related to Financial Well-Being. Financial Literacy has no meaningful association with long-term investment. Furthermore, an investment fund was discovered to greatly strengthen and moderate the link between positive performance and sustainable investment. This study expands on the level of awareness and factors as guidance for policymakers to develop and secure attractive, sustainable investment products, as well as for individual investors to be more adaptive and considerate of sustainable investment practices with their valuable financial and non-financial long-term benefits. Future research could re- examine this context by focusing on demographic aspects on distinct generational cohorts, such as solely the Millennial generation and only Generation Z in one study.