From Values to Impact: Socially Responsible Investment Drivers in Nepal

This study provides one of the first empirical analyses of socially responsible investing (SRI) in Nepal, highlighting how personal values and characteristics shape non-economic investment goals in an emerging market context. Drawing on survey data from 550 individual investors and employing structural equation modeling, we examine six drivers: environmental attitudes, religion, collectivism, risk tolerance, materialism, and social investment effectiveness. The results indicate that collectivism, environmental concern, and religiosity positively influence responsible investing, whereas materialism and risk tolerance exert adverse effects. Notably, social investment efficacy emerges as a novel mediating mechanism, demonstrating that investors are more likely to pursue ethical investments when they believe their choices generate meaningful impact. By extending SRI research beyond developed economies, this study contributes fresh evidence to sustainable finance literature. It offers practical implications for policymakers and fund managers seeking to design effective ethical investment products and strengthen ESG awareness in Nepal and similar markets.