Purchase Intention of Green Financial Products: Application of Behavioral Reasoning Theory

Abstract

The concept of green financial products, such as green bonds and green equity, has attracted academic attention as an intervention to safeguard institutions and society from unforeseen economic challenges in the future. Since it is incomplete to introduce green financial products without understanding the purchase intention of green financial products, this article investigated purchase intention of green financial products drawing from behavioral reasoning theory (BRT) and perceived risk theory. This study employed a purposive sampling technique and a cross-sectional survey research design to gather data from 297 investors. Data were gathered using structured questionnaires, and the suggested model was tested using partial least square structural equation modeling. The article found that reasons for, reasons against, and attitudes are significant predictors of purchasing green financial products. Moreover, values and beliefs can develop attitudes, reasons for, and reasons against green financial products. Finally, attitudes toward financial products are developed from reasons for, reasons against, and perceived financial risk of green financial products. This article validated the BRT model with new variables of perceived risk in the context of green financial products. These results could offer unique theoretical and managerial contributions to researchers and practitioners.