Determinants of non-economic investment goals among Indian investors
Abstract
Purpose
The purpose of this paper is to identify underlying characteristics of Indian investors that influence them to achieve their non-economic investment goals.
Design/methodology/approach
The conceptual model posits that investors’ choice of non-economic goal (NEG) is determined by their values and beliefs which are measured through survey data collected from 342 respondents with prior experience of investing in the stock market. A structural equation model is specified to estimate the measurement model. Further, the study analyses the mediating effect of social investment efficacy on the impact of investors’ values and beliefs and their pursuit of non-economic investment goals.
Findings
Religiosity and the belief that one’s actions can bring about a change in the society are the two important determinants of Indian investors’ pursuit of non-economic investment goal.
Research limitations/implications
The model ignores aspects of an investor’s financial stability that may influence the urge to pursue non-economic investment goals.
Practical implications
Socially responsible (SR) funds with investment filters designed to propagate religious values of Indian investors can be designed. As a result, it should be possible to channelize a part of the more than $15 billion available in different religious institutions across the country into the capital market.
Social implications
Availability of SRI funds would provide investors with yet another avenue invest in companies that conform to their protected values.
Originality/value
This is the first study that attempts to study investor characteristics (values and beliefs) and its impact on investor’s NEG in the Indian context.
Keywords
Citation
Sreekumar Nair, A. and Ladha, R. (2014), "Determinants of non-economic investment goals among Indian investors", Corporate Governance, Vol. 14 No. 5, pp. 714-727. https://doi.org/10.1108/CG-09-2014-0102
Publisher
:Emerald Group Publishing Limited
Copyright © 2014, Emerald Group Publishing Limited