SUSTAINABLE FINANCE AND ITS IMPLICATION FOR INVESTMENT DECISION MAKING

Abstract

This study explores the impact of sustainable finance on investment decision-making processes in Chandragiri municipality, Nepal. Addressing the lack of empirical research in this area, the study aims to analyze investors' perceptions, investigate the relationship between sustainable finance and investment decisions, and assess the overall impact of sustainable finance practices. The research design combines descriptive and causal-comparative methodologies, focusing on a sample of 385 investors selected through convenience sampling. Data collection involves a structured questionnaire survey method, adapted to the Nepalese context, using a Likert scale to gauge attitudes and perceptions towards sustainable finance. Statistical tools such as Microsoft Excel and SPSS are utilized for data analysis, employing descriptive statistics, correlation analysis, and multivariate regression models. The research framework incorporates independent variables including Personal Attitude, Subjective Attitude, and Perceived Behavioral Control, influencing sustainable financing, while Trust and investment decision-making serve as dependent variables. The findings indicate a significant positive correlation between sustainable finance variables and investment decision-making. Personal Attitude demonstrates a weaker impact compared to Subjective Attitude, Perceived Behavioral Control, and Trust, all of which show statistically significant effects on investment decision making. Thus, sustainable finance variables collectively serve as main determinants of investment decisions. Practical implications suggest promoting awareness and education in sustainable finance, integrating sustainability considerations into investment strategies, and enhancing transparency and reporting standards. Theoretical implications underscore the importance of integrating behavioral theories into the study of sustainable finance. Recommendations include developing targeted educational initiatives and fostering collaborative efforts between stakeholders. Keywords: SustainableThis study explores the impact of sustainable finance on investment decision-making processes in Chandragiri municipality, Nepal. Addressing the lack of empirical research in this area, the study aims to analyze investors' perceptions, investigate the relationship between sustainable finance and investment decisions, and assess the overall impact of sustainable finance practices. The research design combines descriptive and causal-comparative methodologies, focusing on a sample of 385 investors selected through convenience sampling. Data collection involves a structured questionnaire survey method, adapted to the Nepalese context, using a Likert scale to gauge attitudes and perceptions towards sustainable finance. Statistical tools such as Microsoft Excel and SPSS are utilized for data analysis, employing descriptive statistics, correlation analysis, and multivariate regression models. The research framework incorporates independent variables including Personal Attitude, Subjective Attitude, and Perceived Behavioral Control, influencing sustainable financing, while Trust and investment decision-making serve as dependent variables. The findings indicate a significant positive correlation between sustainable finance variables and investment decision-making. Personal Attitude demonstrates a weaker impact compared to Subjective Attitude, Perceived Behavioral Control, and Trust, all of which show statistically significant effects on investment decision making. Thus, sustainable finance variables collectively serve as main determinants of investment decisions. Practical implications suggest promoting awareness and education in sustainable finance, integrating sustainability considerations into investment strategies, and enhancing transparency and reporting standards. Theoretical implications underscore the importance of integrating behavioral theories into the study of sustainable finance. Recommendations include developing targeted educational initiatives and fostering collaborative efforts between stakeholders. Keywords: Sustainable finance, Investment decision-making, Attitudes, Perceptions, Trust-making, Attitudes, Perceptions, Trust