Determinants of non-economic investment goals among Indian investors

Abhilash Sreekumar Nair (Associate Professor based at the Department of Finance Accounts and Control, Indian Institute of Management, Kozhikode, India)
Rani Ladha (Department of Finance Accounts and Control, Indian Institute of Management Kozhikode, Kozhikode, India)

Corporate Governance

ISSN: 1472-0701

Publication date: 30 September 2014



The purpose of this paper is to identify underlying characteristics of Indian investors that influence them to achieve their non-economic investment goals.


The conceptual model posits that investors’ choice of non-economic goal (NEG) is determined by their values and beliefs which are measured through survey data collected from 342 respondents with prior experience of investing in the stock market. A structural equation model is specified to estimate the measurement model. Further, the study analyses the mediating effect of social investment efficacy on the impact of investors’ values and beliefs and their pursuit of non-economic investment goals.


Religiosity and the belief that one’s actions can bring about a change in the society are the two important determinants of Indian investors’ pursuit of non-economic investment goal.

Research limitations/implications

The model ignores aspects of an investor’s financial stability that may influence the urge to pursue non-economic investment goals.

Practical implications

Socially responsible (SR) funds with investment filters designed to propagate religious values of Indian investors can be designed. As a result, it should be possible to channelize a part of the more than $15 billion available in different religious institutions across the country into the capital market.

Social implications

Availability of SRI funds would provide investors with yet another avenue invest in companies that conform to their protected values.


This is the first study that attempts to study investor characteristics (values and beliefs) and its impact on investor’s NEG in the Indian context.



Sreekumar Nair, A. and Ladha, R. (2014), "Determinants of non-economic investment goals among Indian investors", Corporate Governance, Vol. 14 No. 5, pp. 714-727.

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