Green Finance Awareness, Risk-Taking, and Sustainable Investment Among Retail Investors in Indonesia: Does Gender Matter?
DOI:
https://doi.org/10.21512/bbr.v17i3.15065Keywords:
green finance awareness, risk taking, sustainable investment, retail investors, genderAbstract
Indonesia has introduced green sukuk and sustainable finance regulations, but its green finance market remains less developed than those of countries such as China, Germany, and the United States. While prior studies have largely focused on financial literacy and investment intention, they have paid limited attention to the behavioral mechanisms through which green finance awareness translates into investment decisions, particularly among retail investors in emerging markets. The research addresses this gap by examining how green finance awareness influences investor behavior through investment risk-taking and external influences, while also testing the moderating role of gender. A quantitative research design is employed using a survey of 198 active retail investors who utilize digital investment platforms. Data are analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM). The findings indicate that green finance awareness significantly enhances investors’ willingness to take investment risks and increases their susceptibility to external influences such as social norms, expert opinions, and market information. Both investment risk-taking and external influences positively affect sustainable investment decisions. However, gender does not significantly moderate the relationship between green finance awareness and investment risk-taking, suggesting that male and female investors respond similarly to green finance products. These findings contribute to the literature by providing an integrated behavioral perspective on sustainable investment decisions in the context of retail investors in Indonesia. The results offer practical insights for policymakers and financial institutions to design strategies that enhance retail participation in green finance and support the growth of Indonesia’s sustainable investment market.
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