Analyzing the Intention of Individual Investors towards Socially Responsible Investment: Extended Theory of Reasoned Action

Socially responsible investment (SRI) means investing in the stocks of companies that have positive social functions. SRI provides a mechanism for investors to align personal values with investment objectives. Therefore the purpose of this study is to analyze individual investors’ intention towards socially responsible investment using the extended theory of reasoned action. The population of this study is individual investors of Tehran Stock Exchange and the sample size is 385 people. The conceptual model was tested using structural equation modeling and through Amos software version 24. Exploratory and confirmatory factor analysis have also been used to ensure the existence of the minimum requirements to test the conceptual model. According to the research findings, the variables of attitude, subjective norms, moral norms, environmental concerns, financial literacy and financial performance have a positive and significant effect on the dependent variable (investors' intention towards SRI). Financial performance and environmental concerns variables have the highest and lowest effects on the dependent variable, respectively. Of the six demographic variables (gender, age, education, monthly income, occupation, and experience), only the age variable affects the dependent variable. This means that with getting older, the investors' willingness to invest in socially responsible companies increases.