Building Investor Confidence: The Role of Trust in Green Bond Investment Intentions
List of Authors
Wen-Cheng Hu, Yoke Chin-Kuah, Zakaria Zuriwat
Keyword
Green Bond, Intention, Income Group
Abstract
The Malaysian green bond market is set for sustained expansion, supported by favorable regulatory frameworks, innovative financial instruments, and a strong commitment to environmental sustainability. This study explores the investment intentions of Malaysians in green bonds across different income groups (B40, M40, and T20). A survey conducted with 470 investors, analyzed using PLS-SEM, indicates that financial literacy, environmental concerns, perceived risk, and subjective norms are all strongly linked to investment intentions, with trust serving as a mediating factor. Gaining insights into the key drivers behind Malaysians' willingness to invest in green bonds can facilitate the market’s future growth. Policymakers and regulators can refine existing regulations to develop more effective green bond issuance strategies.