Opportunities to increase financial well-being by investing in environmental, social and governance with respect to improving financial literacy under covid-19: The case of Latvia

Inese Mavlutova (Coresponding Author), Andris Fomins, Aivars Spilbergs, Dzintra Atstaja, Janis Brizga

Research output: Contribution to journalArticlepeer-review

1 Citation (Scopus)
1 Downloads (Pure)

Abstract

The latest studies reveal that the COVID-19 pandemic has pushed investors in developed economies to focus more on the value attached to environmental and social responsibilities. Unfortunately, socially responsible investment and compliance with environmental, social and governance criteria are not given enough priority in Latvia at present. The purpose of the study is to investigate how the COVID-19 pandemic has influenced the willingness of Latvians to invest in assets that meet environmental, social and governance (ESG) criteria and factors influencing investors’ choice based on their financial literacy. Different views on sustainable investments, socially responsible investments and the relevance of environmental, social and governance criteria from private investors’ perspectives were analyzed to identify factors influencing investment decisions in favour of sustainable investments. Quantitative analysis was carried out to reveal the regularities between financial literacy, the willingness to invest to meet the ESG criteria and the level of education and income of the Latvian population, as well as their savings/investment experience. Such statistical methods as descriptive statistics and hypothesis testing were applied to perform an analysis of the results. The authors’ findings include the importance of sustainable investing to Latvian society, changes of attitude towards ESG investing in different private investors’ groups under the COVID-19 crisis, and the effects of these changes on the financial well-being of the population and, on the basis of these findings, have come to the conclusion that the willingness to invest in the assets that follow environmental, social and governance criteria depends on the level of education, savings/investment experience and income level.

Original languageEnglish
Article number339
JournalSustainability (Switzerland)
Volume14
Issue number1
DOIs
Publication statusPublished - 1 Jan 2022
Externally publishedYes

Keywords*

  • Environmental social and governance (ESG)
  • Financial literacy
  • Financial well-being
  • Socially responsible investment (SRI)
  • Sustainable investment (SI)

Field of Science*

  • 5.2 Economy and Business
  • 5.9 Other social sciences
  • 2.7 Environmental engineering

Publication Type*

  • 1.1. Scientific article indexed in Web of Science and/or Scopus database

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