Fuelling sustainability through green bonds: investigating the impact of pro-environmental values on retail investors’ decisions ...

Despite efforts to align the financial system with low-emission trajectories, climate change mitigation remains uncertain due to inadequate current investments. Green Bonds (GBS) can significantly contribute to solving this issue by directing funds towards environmentally sustainable endeavours, yet understanding retail investors’ psychology in GBS decisions is crucial for market growth. This study uses an extended Value-Attitude-Behavior model, analysing data from 325 retail investors to identify factors influencing their GBS investment decisions. A combination of the Artificial Neural Network (ANN), fuzzy set qualitative comparative analysis (fsQCA), and partial least square-structural equation modelling (PLS-SEM) is used for data analysis. Findings unveiled that investors’ attitudes and intentions were driven by Collectivistic value and Socially Responsible Investing (SRI) Bias, while Biospheric values influenced Attitude, but not investment intention. Furthermore, Attitude mediated three out of four ...