Revisiting the determinants of individual sustainable investment—The case of Japan

Gunnar Gutsche*, Miwa Nakai, Toshi H. Arimura

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

17 Citations (Scopus)


This study empirically examines individual sustainable investment behavior of households’ decision-makers in Japan from three perspectives. Based on data from a representative online survey among financial decision makers in Japanese households, we analyze (i) the individual awareness of sustainable investments, (ii) the current share of sustainable investments in individual investors’ portfolios, and (iii) the individual investors’ intention to invest sustainably in the future. We find evidence for huge information deficits among Japanese individual investors indicating that individual sustainable investment in Japan is still in its infancy. Financial literacy, social signaling or word-of-mouth learning, perceived financial performance, and risk preferences are the most important determinants of current individual sustainable investments. Remarkably, non-financial factors such as personal attitudes and values seem to be less important than in Western countries. Nevertheless, the intention to invest sustainably in the future is also driven by individual environmental values and ecological political identification.

Original languageEnglish
Article number100497
JournalJournal of Behavioral and Experimental Finance
Publication statusPublished - 2021 Jun


  • Behavioral finance
  • Individual investors
  • Japan
  • Sustainable investments

ASJC Scopus subject areas

  • Finance


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