Greening portfolios: the role of self-determination and egoism in pre-adoption green investment decisions

Purpose This study examines the psychological and motivational factors underlying retail investors' pre-adoption attitudes and intentions toward green investments and investigates the moderating role of green investment knowledge. Design/methodology/approach A quantitative research design was employed using primary data collected through a structured questionnaire administered to 540 retail investors in North India. The proposed theoretical model and moderation effects were analysed using Partial Least Squares Structural Equation Modelling (PLS-SEM) with SmartPLS (v.4). Findings The results indicate that perceived personal inconvenience negatively influences attitudes toward green investment. In contrast, autonomy, competence, relatedness, concern for environmental consequences, green self-identity and moral obligation exert significant positive effects. Furthermore, knowledge of green investment strengthens the relationship between green investment attitude and intention, with attitude emerging as a strong predictor of green investment intention. Research limitations/implications The findings offer valuable insights for financial institutions and policymakers by highlighting the role of psychological motivators and investor knowledge in shaping pre-adoption attitudes and intentions toward green investments. Tailored products, targeted communication strategies and policy interventions may facilitate the transition of conventional investors into sustainable finance participants. Originality/value The research makes a contribution to the literature on sustainable finance because it explores the psychological factors related to the formation of green investment attitude and intention among non-participating retail investors. The study sheds light on the cognitive and motivationally significant role of mainstream investors in evaluating green investment opportunities before engaging in the process, pre-adoption evaluation, as opposed to post-adoption behaviour, which is a research area that has not been adequately explored in the literature.