Socially responsible investment and sustainability in nepal

Abstract

Sustainable investment has emerged as a significant area of interest among individual investors globally and in Nepal, driven by a growing concern for ethical, environmental, and social issues. This study has aimed to evaluate the impact of investor awareness, risk return attitude, social behavior, investment objectives, and environmental concerns on sustainable investment decision-making in Nepal. To achieve the research objectives, both descriptive and causal-comparative research designs have been employed. The study has targeted individual and corporate investors in Kathmandu Valley, with a sample size of 385 respondents selected through convenience sampling. A quantitative approach has been adopted using primary data collected through a structured questionnaire based on a five-point Likert scale. The instrument has measured six variables, and the data collection tool was adapted from previous validated studies. For analysis, the study has used statistical software such as Microsoft Excel and SPSS. Key statistical techniques include descriptive analysis, correlation analysis, and multivariate regression. The research framework has categorized awareness, risk return attitude, social behavior, investment objective, and environmental concern as independent variables, while sustainable investment decision served as the dependent variable. The findings have revealed a significant and positive relationship between all independent variables and sustainable investment decision. Among them, investment objective has shown the strongest impact, followed by social behavior and awareness. Environmental concern, though slightly weaker in effect, has also significantly contributed to influencing investors' sustainable decisions. The study offers meaningful insights for policymakers, financial institutions, and investors. It recommends promoting educational and awareness programs to foster responsible investment behavior and integrating sustainability considerations into investment planning and practices to ensure better long-term outcomes. Keywords: awareness, risk return attitude, social behavior, investment objective, sustainable investment decision