Investigating Socially Responsible Investor Behavior Within the Scope of Theory of Planned Behavior

Abstract

Socially responsible investments (SRI) form the basis of financial sustainability. SRI is described as the integration of environmental, social, and governance factors into investment decisions. SRI behavior cannot be explained only with the classical risk-return approach. There must be a number of more complex factors driving investors into this space. This study aims to shed light on the philosophy of SRI. For this purpose, the SRI process has been examined in the study. To explain the investment process, the factors that motivate investors to invest in SRI are examined under the theory of planned behavior (TPB). Then this model is analyzed using structural equation model (SEM). The obtained results reveal that attitude, subjective norm, perceived behavioral control and eco-friendly activities positively affect SRI intention. Moreover, SRI behavior can be predicted by investment intention and perceived behavioral control.