Understanding the Perception of Investors Towards Green Bonds: A Quantitative Analysis

Abstract

This study investigates investor awareness and determinants of investment in green bonds in Odisha, India, addressing a critical gap in region-specific empirical research. Green bonds, designed to finance environmentally sustainable projects, have gained prominence globally and in India since 2015. Using a quantitative research design, primary data were collected from 173 investors through structured questionnaires, and analysed via SPSS, employing reliability testing and stepwise multiple regression. The findings indicate that 76.3% of respondents were aware of green bonds. Regression results reveal that perceived environmental benefits, financial performance, risk perception and issuer reputation significantly influence investment decisions, collectively explaining 72.7% of the variance in investor behaviour. Perceived risk perception emerged as the strongest predictor, followed by issuer reputation, environmental benefits and financial performance. The study underscores the importance of investor education, transparency and credible issuers in promoting green bond adoption, offering actionable insights for policymakers, issuers and investors to strengthen India’s sustainable finance ecosystem.