GREEN SIGNALS OR MARKET SENTIMENT? DECODING MODERN INVESTMENT DECISIONS

Abstract

The proposed research will be aimed at understanding the linkages between Environmental Awareness (EA), Investor Sentiment (IS), Social Media Influence (SMI), Firm Reputation (FR) and Investment Decision (ID). The study design is a quantitative research design whereby structured questionnaire is used to collect data. The results show that the Investor Sentiment is positively and significantly related to Investment Decision, Firm Reputation, and Social Media Influence, which is why it is at the core of the impact on the behavior of investors. Firm Reputation also emerges as a good positive factor in Investment Decision, which implies that trust and credibility is a significant factor in financial decision making by investors. Equally, the Impact of social media on Investment Decision is extremely high since it is becoming increasingly important to use digital platforms to influence the perceptions of investors. Environmental Awareness on the other hand has no direct impact on Investment Decision but rather indirect impact on investment behavior via Firm Reputation. The outcomes of the mediation confirm that Firm Reputation and Social Media Influence are significant mediums in which investor sentiment and environmental awareness influence investment decisions.