Abstract

Investor behavior is worth investigating as industries and institutions are concerned about spelling out environmental and social sustainability issues. The stream of research in environmental and social sustainabilities is from the points of view of institutions and policy. Nonetheless, environmental and social sustainability issues are based on individual levels, especially investors and their value. This study investigates whether moral attentiveness plays a role in financing orientation and investment propensity relationships. This research used an experimental method with a between-subject 2 × 2 factorial design. The financing orientation variable was manipulated into two, i.e., green financing orientation with a marginal interest rate and red financing orientation with a high interest rate. The moral attentiveness variable was classified into two, i.e., high and low levels. The results showed that investors in the emerging country showed a propensity to invest more in a red financing orientation condition with a high interest rate compared to that in a green financing orientation with a marginal interest rate. It was on pace with the interdisciplinary perspective of the hierarchy of needs that in emerging countries, one of the forceful elements underlying investment decisions was the monetary element to cater to primary (physiological) conditions. Meanwhile, from a utilitarian perspective, green financing with a marginal interest rate was more ethical than red financing with a high interest rate. It was because green financing gave more benefits to the environment and society. Moral attentiveness could filter the adverse impacts of financing orientation on investment propensity. This research will help policymakers and stakeholders drive investors’ awareness about the industry’s benefits to sustainability and promote the green revolution to a competitive market structure.