Beyond digital narratives: How ethical concerns shape Gen Z’s ESG investment choices
Keywords:
AI, Digital Banking, Ethics, Literacy, Social Media, Sustainable Investment IntentionAbstract
This study aimed to analyze the factors influencing Generation Z's sustainable financial investment intention in Indonesia, focusing on the roles of digital banking, social media, and ethics, along with the moderation of Artificial Intelligence (AI) and financial literacy. Motivated by the paradox between high ESG awareness and low actual investment participation, the study utilized an integration of the Theory of Planned Behavior and the Unified Theory of Acceptance and Use of Technology applying the SEM-PLS method to a sample of 151 Gen Z respondents selected via purposive sampling. The results indicate that Ethics was found to have a strong and significant positive influence, confirming that intrinsic personal values are the primary driver of investment decisions. Conversely, Digital Banking and Social Media showed no significant influence, attributed to the minimal integration of ESG analysis features on digital platforms and Gen Z's skepticism toward greenwashing. Furthermore, both AI and Financial Literacy failed to moderate the relationships, signalling a gap in technology implementation and a lack of specific ESG literacy.
Downloads
References
Ajzen, I. (1991). The theory of planned behavior. Organizational Behavior and Human Decision Processes, 50(2), 179-211.
Alalwan, A. A., Rana, N. P., Dwivedi, Y. K., & Algharabat, R. (2017). Social media in marketing: A review and analysis of the existing literature. Telematics and informatics, 34(7), 1177-1190. https://doi.org/10.1016/j.tele.2017.05.008
Alam, M. M., Awawdeh, A. E., & Muhamad, N. A. (2022). Adoption of mobile banking among young consumers: The role of security and UI/UX design. Journal of Financial Technology, 15(2), 45-67.
Alnemer, H. A. (2022). Determinants of digital banking adoption in the Kingdom of Saudi Arabia: A technology acceptance model approach. Digital Business, 2(2), 100037. https://doi.org/10.1016/j.digbus.2022.100037
APJII. (2023). Survei penetrasi internet Indonesia 2023. Asosiasi Penyelenggara Jasa Internet Indonesia. https://apjii.or.id
Atwal, K., & Bryson, D. (2021). Trust in AI-driven financial services: A generational perspective. International Journal of Bank Marketing, 39(4), 512-530.
Bank Indonesia. (2023). Laporan perkembangan perbankan digital 2023. https://www.bi.go.id
Bappebti. (2023). Regulasi influencer keuangan. Badan Pengawas Perdagangan Berjangka Komoditi. https://www.bappebti.go.id
Bengo, I., Borrello, M., & Chiodini, P. (2021). Greenwashing in sustainable finance: How Gen Z investors navigate ESG claims. Journal of Behavioral and Experimental Finance, 32, 100569.
BPS. (2023). Statistik generasi Z Indonesia. Badan Pusat Statistik. https://www.bps.go.id
Deloitte. (2023). Deloitte Global Gen Z Survey 2023: Sustainability and investment trends.
GSIA. (2023). Global sustainable investment review 2023. Global Sustainable Investment Alliance. https://www.gsi-alliance.org
Iskandar, M., Hartoyo, H., & Hermadi, I. (2020). Analysis of factors affecting behavioral intention and use of behavioral of mobile banking using unified theory of acceptance and use of technology 2 model approach. International Review of Management and Marketing, 10(2), 41-49.
Kasemharuethaisuk, H., & Samanchuen, T. (2023). Factors influencing behavior intention in digital investment services of mutual fund distributors adoption in Thailand. Sustainability, 15(3), 2279.
KSEI. (2024). Profil investor pasar modal Indonesia. Kustodian Sentral Efek Indonesia. https://www.ksei.co.id
Lusardi, A., & Mitchell, O. S. (2014). The economic importance of financial literacy: Theory and evidence. American Economic Journal: Journal of Economic Literature, 52(1), 5-44.
Manaf, S. M. A., Ismail, M. K. A., & Zakaria, S. (2024). A Pilot Study On The Intention To Use Robo-Advisors Among Millennials And Gen Z In Malaysia. In Conference e-Proceedings (p. 71).
Mei, L., Chen, Y., & Wang, H. (2023). AI-driven ESG portfolio recommendations: A game-changer for Gen Z investors. Technological Forecasting and Social Change, 186, 122115.
OJK. (2021). Roadmap keuangan berkelanjutan tahap II (2021-2025). Otoritas Jasa Keuangan. https://www.ojk.go.id
OJK. (2023). Laporan perkembangan inklusi keuangan 2023. Otoritas Jasa Keuangan. https://www.ojk.go.id
Olanrewaju, A. S. T., Hossain, M. A., Whiteside, N., & Mercieca, P. (2020). Social media and entrepreneurship research: A literature review. International journal of information management, 50, 90-110. https://doi.org/10.1016/j.ijinfomgt.2019.05.011
Orra, S., Jain, P., & Kumar, R. (2022). Algorithmic bias in sustainable investing: Can AI mitigate greenwashing? Journal of Cleaner Production, 367, 132963.
Paul, K., Bhattacharya, P., & Misra, S. (2024). Frictional control on accelerating creep during the slow‐to‐fast transition of rainfall‐induced catastrophic landslides. Journal of Geophysical Research: Earth Surface, 129(1), e2023JF007213.
Prasarry, Y. V., Sayoga, R. Y., Marsintauli, F., Handayani, D., Ikhsan, R. B., & Prabowo, H. (2023, May). Digital investment behavior: Insights from Gen-Y and Gen-Z. In 2023 8th International Conference on Business and Industrial Research (ICBIR) (pp. 836-841). IEEE.
Prensky, M. (2001). Digital natives, digital immigrants part 2: Do they really think differently?. On the horizon, 9(6), 1-6.
Putri, S. T., Fardhani, I., Mulyati, Y., Kurniawan, B. R., & Putri, A. (2024). A. 2024. Developing global warming module based on education for sustainable development to increase middle school students’ understanding and sustainability awareness. Jurnal Pendidikan Sains Indonesia (Indonesian Journal of Science Education), 12(2), 247-263.
Sebayang, F., Sirajuddin, M., & Putri, A. (2023). Digital banking adoption among Gen Z: The role of UI/UX and facilitating conditions. Journal of Financial Services Marketing, 28(2), 145-160.
Sembel, J. S., Widjaja, A. W., & Antonio, F. (2024). Determinants of mobile stock investment application adoption and its impact on intention to recommend the applications in emerging countries: a case study of Indonesia. Management & Marketing, 19(3).
Shahid, U., Hussain, M. Z., Hasan, M. Z., Haider, A., Ali, J., & Altaf, J. (2024). Hybrid intrusion detection system for RPL iot networks using machine learning and deep learning. IEEE Access.
Sharma, P., & Pokharel, B. (2025). Financial literacy and sustainable investment behavior: A study of young professionals in Kathmandu. Journal of Asian Economics, 86, 101613.
Sharma, S., & Mahalwala, R. (2023). Unleashing Empowerment through Financial Inclusion Initiatives in India.
Sirajuddin, M., Sebayang, F., & Yuan, T. (2024). Influencer credibility and Gen Z’s investment intentions in ESG assets. Journal of Consumer Behaviour, 23(1), 112-125.
Sousa-Gabriel, E., Ferreira, M., & Rocha, A. (2023). Social media and sustainable investing: A post-pandemic analysis. Sustainability, 15(4), 2345.
Statista. (2024). Digital banking users in ASEAN 2024. https://www.statista.com
Sugiyono. (2021). Metode penelitian kuantitatif, kualitatif, dan R&D (3rd ed.). Alfabeta.
Sumartini, A. R., Suprapti, N. W. S., Piartrini, P. S., & Sukaatmadja, I. P. G. (2024). Digital financial literacy and self-efficacy in increasing intention to use digital bank with the technology acceptance model theory approach: A literature review. International Research Journal of Management, IT and Social Sciences, 11(6), 252–263. https://doi.org/10.21744/irjmis.v11n6.2474
Utami, R., Sembel, R., & Manaf, A. (2025). Financial literacy gaps in ESG investing: Evidence from Indonesian universities. International Journal of Educational Development, 98, 102789.
Venkatesh, V., Morris, M. G., Davis, G. B., & Davis, F. D. (2003). User acceptance of information technology: Toward a unified view. MIS Quarterly, 27(3), 425-478.
Yanida, P., Pratiwi, L. N., & Nugrahani, W. P. (2023). Comparative Evaluation of Portfolio Performance: A Study of Cryptocurrency, Stock, and Foreign Exchange Investments. Jurnal Ilmu Keuangan dan Perbankan (JIKA), 13(1), 45-62.
Zulistiawati, F., & Heryahya, A. (2024). Analysis of green investment interest among millennials and Generation Z using theory of planned behaviour. Airlangga journal of innovation management Учредители: Universitas Airlangga, 5(3), 416-430.
Published
How to Cite
Issue
Section
Copyright (c) 2025 International research journal of management, IT and social sciences
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
Articles published in the International Research Journal of Management, IT and Social sciences (IRJMIS) are available under Creative Commons Attribution Non-Commercial No Derivatives Licence (CC BY-NC-ND 4.0). Authors retain copyright in their work and grant IRJMIS right of first publication under CC BY-NC-ND 4.0. Users have the right to read, download, copy, distribute, print, search, or link to the full texts of articles in this journal, and to use them for any other lawful purpose.
Articles published in IRJMIS can be copied, communicated and shared in their published form for non-commercial purposes provided full attribution is given to the author and the journal. Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgment of its initial publication in this journal.
This copyright notice applies to articles published in IRJMIS volumes 7 onwards. Please read about the copyright notices for previous volumes under Journal History.
