RESPONSIBLE INVESTMENT DECISIONS IN THE SHARE MARKET BY BROKERAGE HOUSES IN KATHMANDU

Abstract

This study investigates responsible investment decisions among individual investors in the share market through brokerage houses in Kathmandu focusing on the influence of Environmental factors, Social factors and Governance factors. Using a descriptive and exploratory research design, data were collected through a field survey conducted in 2024 with a sample of 385 respondents who participated in responsible investment education programs. The research examined the demographic characteristics of investors, such as gender, age, marital status, education, occupation, monthly income status and investment duration. A structured self-administered questionnaire was employed, and the data were analyzed using descriptive statistics analysis, correlation analysis and regression analyses. Descriptive findings indicated that Environmental Factors slightly outweighed Governance and Social Factors in influencing investment decisions, with a general preference for responsible investing. Correlation analysis revealed significant positive relationships between all ESG factors and responsible investment decisions, with Social and Governance Factors showing stronger correlations than Environmental Factors. The regression analysis revealed that Social and Governance Factors significantly influence investment decisions, whereas Environmental Factors have a comparatively limited impact. This underscores the critical role of ESG factors, particularly Social and Governance, in driving responsible investment behavior. The findings highlight the need for targeted educational initiatives to enhance investor understanding and encourage informed decision-making aligned with sustainable practices.