Impact investment intentions of Generation Z: exploring the factors that drive young private investors to decide for environmental, social and governance (ESG) funds

Abstract

This study employs multiple linear regression analyses to investigate the factors influencing Generation Z's (Gen Z) intention to invest in Environmental, Social, and Governance (ESG) funds. By adopting an extended version of the Theory of Planned Behaviour (TPB) as the conceptual framework, a survey of 128 Gen Z individuals reveals that perceived ease of investing, social norms, attitudes, perceived financial performance, risk perception, and consumer effectiveness significantly shape their investment intentions (IINT) in ESG funds. On the other hand, trust and pro-social attitudes, as well as the demographic factors gender, and place of residence did not demonstrate a significant impact. As the first research to explore the motivational drivers of Gen Z in this field, this study fills a gap in the existing literature, providing valuable insights for companies, investment managers, and policymakers to tailor strategies that attract and engage this critical group of investors.