Abstract:

This study examines the effect of sustainability factors on investment decision-making in the Nigerian Exchange Group (NGX), with a focus on environmental, social, and governance (ESG) factors and the mediating role of investment horizon. Using a survey-based approach, data were collected from 383 investors and analyzed through Structural Equation Modelling (SEM) to test four hypotheses. The results revealed that environmental factors (β = 0.171, p < 0.001), social factors (β = 0.433, p < 0.001), and governance factors (β = 0.395, p < 0.001) significantly influence investment decision-making. Furthermore, investment horizon was found to mediate the relationship between sustainability factors and investment decisions (β = 0.957, p < 0.001). Model fit indices confirmed the robustness of the findings, with values such as CFI (0.957), RMSEA (0.054), and GFI (0.920) indicating an acceptable fit. These results highlight the growing importance of ESG considerations in the investment landscape, as investors increasingly prioritize sustainability in their decision-making processes. The findings have critical policy implications. Policymakers should strengthen regulatory frameworks to promote ESG disclosure and encourage the adoption of sustainable practices among listed companies. Financial institutions should develop innovative products tailored to the preferences of sustainability-conscious investors.

Keywords:

Investment Decision-Making, Sustainability Factors, Investment Horizon, Nigerian Exchange Group (NGX), Structural Equation Modelling.

How to Cite:

Gabriel O. Egwurube, Taiwo Adewale Muritala, Ifeoma Nwoye May and Hauwa Lamino Abubakar. Effect of Sustainability Factors on Investor’s Decision in the Nigerian Exchange Group (Ngx). [ref]: vol.23.2025. available at: https://refpress.org/ref-vol23-a16