THE IMPACT OF CORPORATE ENVIRONMENTAL, SOCIAL, AND GOVERNANCE PERFORMANCE ON THE INVESTMENT INTENTION OF RETAIL INVESTORS IN INDIA WITH SOCIAL SELF-EFFICACY AS MODERATOR

Abstract

The growing importance of environmental, social, and governance (ESG) considerations has intensified academic interest in how corporate ESG performance influences stock market investment decisions. Existing ESG research largely relies on secondary data from listed firms, with limited attention to retail investors’ perceptions, particularly in emerging markets. Addressing this gap, the present study examines how Indian retail investors’ perceptions of corporate ESG performance influence their investment attitudes and intentions, drawing on the Theory of Planned Behaviour (TPB). Data were collected from 620 retail investors in India through a structured questionnaire and analysed using Structural Equation Modelling (SEM) and Hayes’ PROCESS macro. The findings reveal that perceived environmental, social, and governance performance significantly and positively affects investors’ attitudes and investment intentions. Further, social self-efficacy acts as a moderator, strengthening the relationships between ESG performance, attitude, and investment intention. The results offer practical insights for firms, regulators, and policymakers by highlighting the importance of transparent ESG disclosures and investor capability-building initiatives to promote sustainable investment behaviour.