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Investing in Green? Determinants of Intention to Invest in Socially Responsible Mutual Funds (SRMF)

Author

Listed:
  • Angela Ee Ling Tiong

    (School of Business and Management, University of Technology Sarawak, Sarawak)

  • Liing-Sing Ling

    (School of Business and Management, University of Technology Sarawak, Sarawak)

  • Wee Cheng Lim

    (School of Business and Management, University of Technology Sarawak, Sarawak)

  • Pick-Soon Ling

    (School of Business and Management, University of Technology Sarawak, Sarawak)

  • Zen Hong Chew

    (School of Business and Management, University of Technology Sarawak, Sarawak)

Abstract

Socially responsible mutual funds (SRMF) are an alternative investment to fulfil the demand of environmentally conscious investors. Although several studies have been examined on this kind of investment, the evidence on investing in SRMF from the emerging market is relatively limited. The study aims to explore the factors that affect the intention to invest (II) in the SRMF based on a sample from Malaysia. An extended Theory of reasoned action (TRA) framework is developed with financial-related factors (financial self-efficacy (FSE) and financial literacy (FL) and also environmental-related factors (environmental consciousness (EC) and environmental responsibility (ER)). The analysis results of partial least squares-structural equation modelling (PLS-SEM) from 218 responses in Malaysia showed that the II in SRMF is affected by attitudes (ATT), subjective norms (SN), FSE and EC. This further indicated that FL and ER insignificantly impact II in SRMF. The study not only provides significant implications in the literature but also offers important implications for stakeholders in encouraging investment in SRMF.

Suggested Citation

  • Angela Ee Ling Tiong & Liing-Sing Ling & Wee Cheng Lim & Pick-Soon Ling & Zen Hong Chew, 2025. "Investing in Green? Determinants of Intention to Invest in Socially Responsible Mutual Funds (SRMF)," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 9(23), pages 125-136, October.
    • Handle: RePEc:bcp:journl:v:9:y:2025:i:23:p:125-136
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    References listed on IDEAS

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    1. Beibei Yue & Guanghua Sheng & Shengxiang She & Jiaqi Xu, 2020. "Impact of Consumer Environmental Responsibility on Green Consumption Behavior in China: The Role of Environmental Concern and Price Sensitivity," Sustainability, MDPI, vol. 12(5), pages 1-16, March.
    2. Hawariah Dal Nial & Zarina Zakaria & Anna Che Azmi, 2024. "Influence of level of assurance, assurance provider type, and investors’ personality in greenhouse gases reporting for social responsible investment," Journal of Accounting & Organizational Change, Emerald Group Publishing Limited, vol. 21(2), pages 360-381, June.
    3. Rajdeep Kumar Raut, 2020. "Past behaviour, financial literacy and investment decision-making process of individual investors," International Journal of Emerging Markets, Emerald Group Publishing Limited, vol. 15(6), pages 1243-1263, April.
    4. Arno Riedl & Paul Smeets, 2017. "Why Do Investors Hold Socially Responsible Mutual Funds?," Journal of Finance, American Finance Association, vol. 72(6), pages 2505-2550, December.
    5. Kumar, Anil & Prakash, Gyan & Kumar, Gaurav, 2021. "Does environmentally responsible purchase intention matter for consumers? A predictive sustainable model developed through an empirical study," Journal of Retailing and Consumer Services, Elsevier, vol. 58(C).
    6. Saeed Awadh Bin-Nashwan & Aishath Muneeza & Sherin Kunhibava, 2022. "What motivates retail investors to invest in government-issued digital sukuk during COVID-19?," Journal of Islamic Accounting and Business Research, Emerald Group Publishing Limited, vol. 13(3), pages 393-424, February.
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    8. Christiansen, Charlotte & Jansson, Thomas & Kallestrup-Lamb, Malene & Noren, Vicke, 2023. "Households' investments in socially responsible mutual funds," The Quarterly Review of Economics and Finance, Elsevier, vol. 87(C), pages 46-67.
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