Impact of ESG on individual investors’ investment decisions on Vietnam stock exchanges

Abstract

The research was conducted to analyze the influence of environmental, social, and governance (ESG) on the investment decisions of individual investors in the Vietnam Stock Market. Theoretical
background includes the Theory of Planned Behavior, Agency Theory, and Stakeholder Theory. From survey data of 227 individual investors in Vietnam, the authors conducted the model evaluation and tested research hypotheses through the PLS-SEM method. Empirical research results have proven a relationship between ESG issues and investment decisions of individual investors on the Vietnamese stock market, in  which governance factors have the greatest influence, followed by social and environmental factors. Based on the research results, the article proposes some recommendations for individual investors in Vietnam in the process of making investment decisions.