Behavioral insights into ESG investing: extending the theory of planned behavior to retail investors suppressors and enhancers

Abstract

This research explores the behavioral dimensions of retail investors engagement and refrainment according to ESG investments, extending the Theory of Planned Behavior. Through qualitative interviews with eight retail investors and two asset managers, key enhancers (e.g. financial return and ethical values) as well as suppressors (trust deficits and data complexity) were identified. These findings highlight the interconnection of attitudes, subjective norms and perceived behavioral control enriched by extended variables like trust, education and standardization. Addressing barriers and fostering informed decision-making, this research provides actionable implications for stakeholders to bridge the intention-behavior gap and enhance ESG investments among retail investors.