Green Bonds, Sustainability, And Vulnerability: Analysing The Impact On Environmental And Financial Resilience Of Investors In Indian Market

Abstract

This study examines the impact of green bonds on environmental and financial resilience among investors in the Indian market, focusing on the behavioral determinants influencing investor participation. Employing a quantitative approach, primary data were collected from 112 respondents and analyzed using descriptive statistics and multiple regression to identify key factors affecting continued investment. Findings indicate a nascent market dominated by young, highly educated, but inexperienced investors. Regression results highlight "Social Norms and Public Opinion" as the strongest predictor of investment behavior, supporting signaling theory where reputational benefits outweigh purely financial considerations. While expected returns positively influence investment decisions, intrinsic motivation and perceived financial risk exhibit limited predictive power. These results suggest that green bonds currently function primarily as reputational assets, rendering the market vulnerable to greenwashing risks. The study advocates for enhanced regulatory frameworks and transparent impact reporting to shift the market toward sustained financial resilience, contributing valuable empirical evidence to sustainable finance literature in emerging economies