Exploring Investor Decision-Making through the KAP Model: Knowledge, Attitudes, and Practices Regarding ESG Disclosures in the Oil and Gas Sector

Abstract

This study examines the impact of investors' knowledge, attitudes, and practices (KAP) regarding ESG disclosures on their investment decisions in the oil and gas industry. By analyzing a sample of 160 investors, the research aims to assess the level of knowledge about ESG factors, the attitudes towards companies that disclose ESG information, and the investment practices influenced by such disclosures. The study finds a significant positive correlation between knowledge and investment practices, suggesting that investors with greater knowledge of ESG disclosures are more likely to incorporate these factors into their investment decisions. However, the relationship between knowledge and attitudes is weak, indicating that while knowledge influences practices, it does not significantly affect investors' attitudes toward ESG disclosures. This study provides valuable insights into how ESG factors shape investment behavior in the oil and gas sector, highlighting the importance of enhancing investor knowledge to promote sustainable investment practices.