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A study on the awareness level of investors in ESG investing and the impact of non-financial factors in long term performance of organisations in Indian market

Thirumalai, Naveen Kumar (2022) A study on the awareness level of investors in ESG investing and the impact of non-financial factors in long term performance of organisations in Indian market. Masters thesis, Dublin, National College of Ireland.

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This study will focus on the topic of ESG investing and specifically focusing on non-financial factors such as Environmental, Social and Governmental factors within the Indian Investment sector. Some believe that including sustainable assets into their portfolios will increase their returns and profits over time. Others view it as an opportunity to drive change and contribute to the creation of environmental or social value. To determine whether investors and investment managers in the Indian investment sector are likely to adopt these practices or do they possibly pose a threat to maximize returns and increase financial wealth for their clients and themselves? The goal of the thesis is to examine the impact of sustainable investment strategies on organization’s long-term growth and performance, particularly in the Indian market, and to investigate the extent of investor awareness of ESG investing. The study also aims to identify the circumstances in which sustainable investment might help India's organizations operate better over the long term.

The study firstly focuses on the history and background context of the sustainable investments to give a good overview to the reader about sustainable investments industry. The information included here are not just limited to Indian market but a provides a overall view about the global market. Secondly, a through literature review is included to link back to the research question.

To conduct the research the primary data is gathered through a survey technique, and it includes a total of 87 responses from investment managers and investors from various Indian investment organizations. A random sampling method is used for sample selection. The study used quantitative techniques and a descriptive statistical design to gather data which is relevant to Indian investment sector and to demonstrate a connection between organizational success and sustainable investment. As will be demonstrated throughout this dissertation, secondary data is also considered to review the current literature given on sustainable investments. Secondary data is taken from the journals, articles, newsletters, books, regulatory websites, government portals, stock markets and annual reports.

“Statistical Package for Social Sciences (SPSS)” software helps in the analysis of statistical data. For this study as quantitative techniques are included SPSS software is used in analysing each question mentioned in questionnaire. Pearson’s correlation analysis is used here to find out the coefficient correlation between two variables. It was found that there was a strong relationship and factors influencing investors interest towards sustainable investments and the advantages, or the benefits achieved from these sustainable investments were positively correlated to each other.

The findings obtained from the analysis conclude that Indian organisations recognize the benefits of sustainable investment, such as its strong competitive position, high financial return, and maximizing returns. It is concluded that sustainable investments aids in boosting financial accountability, economic transactions, and will enhance transparency which results in longterm success of Indian organisations. The research highlights the advantages of sustainable investment for businesses as well as risk considerations that should be taken into consideration by organizations and investors before making any decisions. The study also clarified how sustainable investments affect an organization's long-term performance.

Finally, recommendations and potential areas for future research are also provided to encourage further investigation into this subject.

Item Type: Thesis (Masters)
Subjects: H Social Sciences > HD Industries. Land use. Labor > Large Industry. Corporations. > Corporate Governance
H Social Sciences > HG Finance > Investment > Investment Strategy
Divisions: School of Business > Master of Science in Finance
Depositing User: Clara Chan
Date Deposited: 26 Oct 2022 12:02
Last Modified: 26 Oct 2022 12:02

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