Does Government Trust Matter? Green Signaling and Responsible Investing Intention in the Context of Danantara

Abstract

This study examines Perceived Green Signaling and Trust in Government as mechanisms linking Environmental Concern and ESG Knowledge to Responsible Invest Intention, in the context of Danantara, Indonesia's sovereign wealth fund. Using PLS-SEM on 166 retail investors, results show Environmental Concern and ESG Knowledge positively affect Perceived Green Signaling, which strongly predicts Trust in Government but not Responsible Invest Intention directly. Trust in Government fully mediates this effect, extending signaling theory and informing government trust-building communication strategy.

Keywords:  Green Signaling, ESG, Sovereign Wealth Fund