Risk Aversion, Behavioral Finance and Green Bonds for the Sustainability of Environmental Assets in Peru
Abstract
The study objective is to investigate the relationship between behavioral finance and the decision to invest in green bonds for the sustainability of environmental assets in Peru. A survey with behavioral questions was applied to a sample of 54 respondents between July and October 2019. Spearman's rank correlation, independence tests, and logistic regression were used. Significant negative correlations were found between the level of education and risk aversion, and between age and risk aversion. A negative relationship was found between risk aversion and the feeling of comfort when investing in stock market instruments such as green bonds. Aversion to a loss in investment decisions was validated; most people choose low-risk fixed income instruments despite feeling safe investing in stocks. According to the logistic regression, the decision to invest in green bonds to improve environmental quality is explained by the variables “green bond rating” and “feeling of comfort (satisfaction) investing in green bonds.”
Downloads
Copyright (c) 2020 Edelina Coayla
This work is licensed under a Creative Commons Attribution 4.0 International License.
Author (s) should affirm that the material has not been published previously. It has not been submitted and it is not under consideration by any other journal. At the same time author (s) need to execute a publication permission agreement to assume the responsibility of the submitted content and any omissions and errors therein. After submission of a revised paper in the light of suggestions of the reviewers, editorial team edits and formats manuscripts to bring uniformity and standardization in published material.
This work will be licensed under Creative Commons Attribution 4.0 International (CC BY 4.0) and under condition of the license, users are free to read, copy, remix, transform, redistribute, download, print, search or link to the full texts of articles and even build upon their work as long as they credit the author for the original work. Moreover, as per journal policy author (s) hold and retain copyrights without any restrictions.
