Does Sustainable Investment Knowledge Affect Investment Behavior? A Social Cognitive Theory Perspective

Sustainable investment (SI) integrates financial returns with environmental, social, and governance (ESG) considerations, contributing to societal and ecological well-being. Despite its growing importance, limited research examines how senior managers’ SI knowledge drives investment intentions. Based on social cognitive theory, this study explored how and why sustainable investment (SI) knowledge connected with SI intention via two pathways: SI self-efficacy, and SI returns perception. The study further introduced environmental awareness as a moderating variable. Three-wave data collected from 204 Executive MBA (EMBA) students at an eastern university in China using SI knowledge scale, SI self-efficacy scale, SI returns perception scale, environmental awareness scale and SI intention scale alongside demographic data collection. Multiple regression analysis showed that a positive correlation between SI knowledge and SI intention. This effect was mediated by SI self-efficacy and SI returns perception. We also demonstrated that environmental awareness modified the strength of the indirect effect of SI knowledge on SI intention through SI self-efficacy. These findings provide valuable insight for policymakers, managers, and organizations seeking to promote sustainable investing practices and contribute to the achievement of environmental and social goals.