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A Comparative Study of Financial Performance between Sustainable and Conventional Investment Anita Handayani; Rofikoh Rokhim
Journal of Entrepreneurship and Business Vol. 4 No. 2 (2023): Journal of Entrepreneurship and Business (June)
Publisher : Program MM Universitas Surabaya

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.24123/jeb.v4i2.5691

Abstract

Purpose: This study aims to examine the attractiveness of sustainable investments to investors and assess the potential disparity in returns between sustainable and conventional investment in Indonesia. It addresses the fundamental question of whether a statistically significant difference exists in the financial performance of these two investment types. Method: The study focused on evaluating the performance of green bonds, green equities, and green mutual funds, compared to conventional one between 2018 and 2023. Specifically, it involved a comparative analysis of the yields or return of both type of investment using an independent sample t-test. Result: The findings reveal that there is no statistically significant difference in the yield or return of sustainable and conventional investment instruments. While both categories demonstrate comparable profit potential, distinctions arise in terms of price volatility. This research contributes to the existing scientific literature on sustainable investing, providing valuable insights to investors in making well-informed decisions that encompass both environmental considerations and financial objectives.