The Relationship Between Dimensions of Perfectionism and the Tendency Toward Ethical Investment

Subject Areas : International Journal of Finance, Accounting and Economics Studies

Hengameh Khaliliyan ¹ , Mohammadreza Pourali ^{2 *} , Mahmood Samadi Larghani ³ , Shahnam Abolghasemi ⁴

1 - PhD Candidate, Department of Accounting, To.C., Islamic Azad University, Tonekabon, Iran
2 - Associate Professor, Department of Accounting, Cha.C., Islamic Azad University, Chalous, Iran
3 - Assistant Professor, Department of Accounting, To.C., Islamic Azad University, Tonekabon, Iran
4 - Associate Professor, Department of Psychology, To.C., Islamic Azad University, Tonekabon, Iran

Received: 2025-08-01 Accepted : 2025-09-06 Published : 2025-09-14

Keywords: Self-oriented perfectionism, Other-oriented perfectionism, socially prescribed perfectionism, Ethical investment,

Abstract :

Purpose: This study explores the relationship between distinct dimensions of perfectionism and the tendency toward ethical investment among individual investors in Iran’s capital market. While previous research has highlighted the influence of perfectionism on ethical decision-making, limited attention has been given to how specific perfectionist traits—self-oriented, other-oriented, and socially prescribed—relate to ethical investment behavior.

Methodology: An applied, descriptive-survey research design was employed. Data were collected via a standardized questionnaire distributed to 384 individual investors on the Tehran Stock Exchange, selected using non-random sampling. The questionnaire measured self-oriented, other-oriented, and socially prescribed perfectionism (each with 10 items), as well as ethical investment tendency (4 items). Reliability and validity were confirmed using Cronbach’s alpha, expert review, and confirmatory factor analysis. Structural equation modeling (SEM) and LISREL 12 software was used to assess the hypothesized relationships between perfectionism dimensions and ethical investment behavior.

Findings: Results revealed a significant positive relationship between socially prescribed perfectionism and the tendency toward ethical investment, suggesting that individuals who perceive high external expectations are more inclined to consider ethical factors in financial decisions. In contrast, no significant relationships were found between ethical investment and the other two perfectionism dimensions—self-oriented and other-oriented. These findings suggest that external social pressures, rather than internal or interpersonal standards, are more predictive of ethical investment tendencies among Iranian investors. The study offers practical implications for companies aiming to attract ethical investors through CSR initiatives and value-driven communication