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Opportunities to Increase Financial Well-Being by Investing in Environmental, Social and Governance with Respect to Improving Financial Literacy under COVID-19: The Case of Latvia

Author

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  • Inese Mavlutova

    (Department of Economics and Finance, BA School of Business and Finance, LV-1013 Riga, Latvia)

  • Andris Fomins

    (Department of Economics and Finance, BA School of Business and Finance, LV-1013 Riga, Latvia)

  • Aivars Spilbergs

    (Department of Economics and Finance, BA School of Business and Finance, LV-1013 Riga, Latvia)

  • Dzintra Atstaja

    (Department of Management, BA School of Business and Finance, LV-1013 Riga, Latvia
    Circular Economics Center, Liepaja University, LV-3401 Liepaja, Latvia)

  • Janis Brizga

    (Circular Economics Center, Liepaja University, LV-3401 Liepaja, Latvia
    Department of Environmental Sciences, University of Latvia, LV-1004 Riga, Latvia)

Abstract

The latest studies reveal that the COVID-19 pandemic has pushed investors in developed economies to focus more on the value attached to environmental and social responsibilities. Unfortunately, socially responsible investment and compliance with environmental, social and governance criteria are not given enough priority in Latvia at present. The purpose of the study is to investigate how the COVID-19 pandemic has influenced the willingness of Latvians to invest in assets that meet environmental, social and governance (ESG) criteria and factors influencing investors’ choice based on their financial literacy. Different views on sustainable investments, socially responsible investments and the relevance of environmental, social and governance criteria from private investors’ perspectives were analyzed to identify factors influencing investment decisions in favour of sustainable investments. Quantitative analysis was carried out to reveal the regularities between financial literacy, the willingness to invest to meet the ESG criteria and the level of education and income of the Latvian population, as well as their savings/investment experience. Such statistical methods as descriptive statistics and hypothesis testing were applied to perform an analysis of the results. The authors’ findings include the importance of sustainable investing to Latvian society, changes of attitude towards ESG investing in different private investors’ groups under the COVID-19 crisis, and the effects of these changes on the financial well-being of the population and, on the basis of these findings, have come to the conclusion that the willingness to invest in the assets that follow environmental, social and governance criteria depends on the level of education, savings/investment experience and income level.

Suggested Citation

  • Inese Mavlutova & Andris Fomins & Aivars Spilbergs & Dzintra Atstaja & Janis Brizga, 2021. "Opportunities to Increase Financial Well-Being by Investing in Environmental, Social and Governance with Respect to Improving Financial Literacy under COVID-19: The Case of Latvia," Sustainability, MDPI, vol. 14(1), pages 1-25, December.
    • Handle: RePEc:gam:jsusta:v:14:y:2021:i:1:p:339-:d:713613
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    References listed on IDEAS

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    Cited by:

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    2. Changlin Ji & Yuwei Feng, 2025. "RETRACTED ARTICLE: Evaluating the Innovation-Boosting Potential of Low-Carbon Pilot Policies: A Multi-Subject Co-Governance Perspective," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 16(2), pages 6033-6072, June.
    3. Aisha Bibi & Imran Khan & Khalid Zaman & Sriyanto Sriyanto & Sasmoko & Aqeel Khan, 2022. "Does money buy health? evaluation of stock market performance and economic growth in the wake of the COVID-19 pandemic," PLOS ONE, Public Library of Science, vol. 17(7), pages 1-30, July.
    4. Zeng, Hongjun & Abedin, Mohammad Zoynul & Lucey, Brian & Ma, Shenglin, 2025. "Tail risk contagion and multiscale spillovers in the green finance index and large US technology stocks," International Review of Financial Analysis, Elsevier, vol. 97(C).
    5. Viktor Koval & Olga Laktionova & Dzintra Atstāja & Janis Grasis & Iryna Lomachynska & Roman Shchur, 2022. "Green Financial Instruments of Cleaner Production Technologies," Sustainability, MDPI, vol. 14(17), pages 1-17, August.
    6. Inese Mavlutova & Aivars Spilbergs & Atis Verdenhofs & Andris Natrins & Ilja Arefjevs & Tatjana Volkova, 2022. "Digital Transformation as a Driver of the Financial Sector Sustainable Development: An Impact on Financial Inclusion and Operational Efficiency," Sustainability, MDPI, vol. 15(1), pages 1-24, December.
    7. Oyku Yucel & Gizem Celik & Zafer Yilmaz, 2023. "Sustainable Investment Attitudes Based on Sustainable Finance Literacy and Perceived Environmental Impact," Sustainability, MDPI, vol. 15(22), pages 1-20, November.

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