Analyzing the Impact of Environmental Concern and Perceived Consumer Effectiveness on Sustainable Investment Decisions: A Smart PLS-SEM Approach

This study explores how Environmental Concern and Perceived Consumer Effectiveness (PCE) influence investors' willingness to invest in environmentally friendly firms. It examines behavioural finance aspects, particularly how individual investors perceive their role in sustainable investment decisions. Methodology A quantitative research approach was adopted, utilizing survey questionnaires to collect data from individual investors in Navi Mumbai. The study employed Smart PLS-SEM modelling to analyse the relationships between environmental concern, PCE, and investment behaviour. Research Application The study contributes to the sustainable finance and behavioural investment literature by assessing how investors' environmental awareness and perceived effectiveness impact their financial decision-making toward green investments. Practical Application Findings suggest that financial institutions, policymakers, and corporate firms should focus on raising environmental awareness and enhancing perceived consumer effectiveness to encourage green investment. The results can help shape marketing strategies and policy frameworks to promote sustainable finance. Originality/Value This study fills a gap in sustainable investment research by linking environmental concern and PCE to investors' willingness to invest in green firms, particularly in a developing country context. The behavioural finance perspective adds a new dimension to existing sustainable finance research.