Individual investors’ intention towards investment in green bonds in kathmandu valley

Abstract

This paper examines the variables that influence the intention of individual investors to invest in green bonds in Kathmandu Valley. Theory of Planned Behavior is the theory applied in the research which evaluates the importance of the Green Attitude, Green Subjective Norms, Green Perceived Behavioral Control and Environmental Concern in predicting the Green Investment Intention. Data collection was done through structured questionnaires both face to face and online in data collection. The Descriptive and Inferential statistics were used to provide profile of the demographic variables, investment experience, sustainability awareness and establish the relationships between the constructs. The results show that Kathmandu Valley investors are becoming more concerned about the environmental concerns. The effects of all the four independent variables on Green Investment Intention were significant and positive with Green Attitude and Environmental Concern being the most significant ones. This implies that subjective values and environmental awareness is major determinant in the identification of pro environmental investment behavior. The findings can be attributed to the Theory of Planned Behavior that comments intention is related to attitudes, subjective norms, and the perceived behavioral control. The high impact of the Green Attitude, Environmental Concern and Green Subjective Norms would mean that the values and the social expectation that exists in the environment influences the investors to consider green bonds. The Green Perceived Behavioral Control lays emphasis on the worth of confidence and perceived capability in investment decision making. Environmental Concern Incorporation in the model increases TPB. The conclusion of this work is that Kathmandu Valley green investment intention is dependent on the individual attitudes, social influence, perceived ability and environmental awareness. When there is more sustainability and environmental sensitivity, the interest is even greater. The ease of participation, improved information, and improved financial literacy improve the participation. These findings are alongside the Theory of Planned Behavior and enable efforts to popularize the Nepal green bond market