Exploring the Factors Shaping Green Stock Investment Decisions among Novice Investors in Indonesia: An Exploratory Factor Analysis
DOI:
https://doi.org/10.29407/9smd8t61Keywords:
Green Investment, , Young Investors, , Behavioral Finance,, Exploratory Factor Analysis, , Sustainable Finance.Abstract
Abstract. The rapid growth of young investors in Indonesia has increased interest in sustainable investment and the behavioral factors underlying green stock investment decisions. This study aims to identify the underlying behavioral dimensions associated with green stock investment among young Indonesian investors. A quantitative survey was conducted involving 110 investors aged 18–36 years in Surabaya and Denpasar. Data was analyzed using Exploratory Factor Analysis (EFA). The Kaiser-Meyer-Olkin (KMO) value of 0.684 and significant Bartlett’s test indicated that the data were suitable for factor analysis. The analysis identified four latent dimensions, namely rational investment analysis, overconfidence bias, emotional decision-making, and investment priority orientation, which jointly explained 61.39% of the total variance. The findings indicate that green stock investment behavior is multidimensional, involving rational evaluation, psychological confidence, emotional responses, and investment prioritization. This study contributes to behavioral finance and sustainable finance literature by providing an exploratory perspective on young investors in an emerging market.
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Copyright (c) 2026 Sista Paramita, Yuyun Isbanah, Trias Madanika Kusumaningrum, Ina Uswatun Nihaya (Author)
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