Financial Literacy and Knowledge on Intention in Sustainable and Responsible Investment


  • Nabila Na'ma Aisa Universitas Ahmad Dahlan
  • Rintan Nuzul Ainy Universitas Ahmad Dahlan
  • Qoryani Syahira Universitas Ahmad Dahlan



Financial literacy, Investment, SRI, Behavior, TPB


Sustainable and Responsible Investment (SRI) has been growing massively recently. The Indonesia Stock Exchange has launched several indexes regarding companies concerned about Environment, Social, and Governance (ESG). Despite the development of the capital market and business, studies about investors' decisions to invest in SRI products are still limited. The present study aims to investigate the drivers of SRI participation of Indonesian investors. Young people have dominated the number of Indonesian investors. Hence, this study focuses on students as the target population, especially in Yogyakarta. This research is explanatory research, which seeks a causal relationship between the variables. The sampling technique used is convenience sampling. The data was collected through an online questionnaire spread to university students in Yogyakarta. Multiple regression analysis is employed to test the data. Financial literacy and knowledge of SRI positively and significantly impact investment intention in SRI. This research contributes to the literature by adding empirical results on how SRI knowledge and financial literacy affect intention in SRI participation. The result can be used as a reference for financial sector and capital market stakeholders to boost investment in SRI.


Aisa, N. N. (2021). Do Financial Literacy and Technology Affect Intention to Invest in the Capital Market in the Early Pandemic Period? Journal of Accounting and Investment, 23(1), 49–65.

Aisa, N. N., Fitriani, D., & Humairo, A. (2022). What Drives Investment Intention in Indonesia. AKURASI: Jurnal Riset Akuntansi dan Keuangan, 4(2), 113-124.

Ajzen, I. (1991). The theory of planned behavior. Organizational Behavior and Human Decision Process, 50, 179–211.

Ajzen, I., & Cote, N. G. (2008). Attitudes and the prediction of behavior. In Attitudes and attitude change (pp. 289–305).

Anderson, A., & Robinson, D. T. (2021). Financial Literacy in the Age of Green Investment. Review of Finance, December, 1–34.

Aristei, D., & Gallo, M. (2021). Financial knowledge, confidence, and sustainable financial behavior. Sustainability (Switzerland), 13(19).

Bauer, R., & Smeets, P. (2015). Social identification and investment decisions. Journal of Economic Behavior and Organization, 117, 121–134.

Borgers, A. C. T., & Pownall, R. A. J. (2014). Attitudes towards socially and environmentally responsible investment. Journal of Behavioral and Experimental Finance, 1, 27–44.

East, R. (1993). Investment decisions and the theory of planned behaviour. Journal of Economic Psychology, 14(2), 337–375.

Elkington, J. (2017). Towards the sustainable corporation: Win-win-win business strategies for sustainable development. Corporate Environmental Responsibility, June, 109–119.

Financial Services Authority. (2021). Roadmap Keuangan Berkelanjutan Tahap II (2021 – 2025). Otoritas Jasa Keuangan, 2, 21.

Gutsche, G., Nakai, M., & Arimura, T. H. (2021). Revisiting the determinants of individual sustainable investment—The case of Japan. Journal of Behavioral and Experimental Finance, 30, 100497.

Gutsche, G., & Zwergel, B. (2020). Investment Barriers and Labeling Schemes for Socially Responsible Investments. Schmalenbach Business Review, 72(2), 111–157.

Halim, M. P., Matoati, R., Viana, E. D., & Suryawati, R. F. (2022). Pengaruh Literasi Keuangan dan Green Perceived Risk terhadap Keputusan Investasi Milenial Jawa Barat. Jurnal Manajemen Dan Organisasi, 13(2), 203–212.

Hati, S. R. H., Wibowo, S. S., & Safira, A. (2020). The antecedents of Muslim customers' intention to invest in an Islamic bank's term deposits: evidence from a Muslim majority country. Journal of Islamic Marketing, 12(7), 1363–1384.

Indonesia Central Securities Depository. (2021). Statistik Pasar Modal Indonesia Desember 2021. Indonesia Central Securities Depository, 1–6.

Lim, K. L., Soutar, G. N., & Lee, J. A. (2013). Factors affecting investment intentions: A consumer behaviour perspective. Journal of Financial Services Marketing, 18(4), 301–315.

Lusardi, A. (2019). Financial literacy and the need for financial education: evidence and implications. Swiss Journal of Economics and Statistics, 155(1), 1–8.

Lusardi, A., & Mitchell, O. S. (2008). Planning and financial literacy: How do women fare? American Economic Review, 98(2), 413–417.

Lusardi, A., & Mitchell, O. S. (2014). The economic importance of financial literacy: Theory and evidence. Journal of Economic Literature, 52(1), 5–44.

Natsir, K., Arifin, A. Z., & Bangun, N. (2021). The effect of product knowledge and influence of society on investment intention of stock investors with perceived risk as mediation. Estudios de Economia Aplicada, 39(12), 473–479.

Nilsson, J. (2009). Segmenting socially responsible mutual fund investors: The influence of financial return and social responsibility. International Journal of Bank Marketing, 27(1), 5–31.

Osman, I., Ma’in, M., Muda, R., Husni, Nur Syahirah Amin Alwi, S. F. S. A., & Hassan, F. A. (2019). Determinants of Behavioural Intention Towards Green Investments: The Perspectives of Muslims. International Journal of Islamic Business, 4(1), 16–38.

Riedl, A., & Smeets, P. (2017). Why Do Investors Hold Socially Responsible Mutual Funds? Journal of Finance, 72(6), 2505–2550.

Rossi, M., Sansone, D., van Soest, A., & Torricelli, C. (2019). Household preferences for socially responsible investments. Journal of Banking and Finance, 105, 107–120.

Sekaran, U., & Bougie, R. (2016). Research Methods for Business 7th Edition (7th ed.). John Wiley & Sons.

Sultana, S., Zulkifli, N., & Zainal, D. (2018). Environmental, social and governance (ESG) and investment decision in Bangladesh. Sustainability (Switzerland), 10(6), 1–19.

Van Rooij, M., Lusardi, A., & Alessie, R. (2011). Financial literacy and stock market participation. Journal of Financial Economics, 101(2), 449–472.

Wins, A., & Zwergel, B. (2016). Comparing those who do, might and will not invest in sustainable funds: a survey among German retail fund investors. Business Research, 9(1), 51–99.

Xu, X., Xie, Y., Xiong, F., & Li, Y. (2022). The Impact of COVID-19 on Investors' Investment Intention of Sustainability-Related Investment: Evidence from China. Sustainability (Switzerland), 14(9), 1–37., P., Setiawan, A., & Suarmanayasa, I. N. (2022). Pengaruh Literasi Keuangan dan Sikap Keuangan terhadap Pengelolaan Keuangan UMKM di Kecamatan Gerokgak pada Masa. 12(2), 501–508. Jurnal Ilmiah Akuntansi dan Humanika.