The ethical concerns of investors increasingly influence investment decisions. This research paper endeavours to highlight that by analysing the relationship between investment ethics and investor behaviour and between investment ethics and financial satisfaction . In doing so, the hypothesis tests found that there were statistically significant positive relationships for both cases. Hence, it was concluded that ethical investing results in increased financial satisfaction through investor behaviour. Such results were based on a sample of 227 capital market investors and data on 16 securities companies in South Sulawesi, Indonesia.

Satisfaction is often the subject of research in fields other than finance, however, ‘satisfactory’ financial behaviour is seen as an indicator of welfare and happiness, highlighting its importance in overall life satisfaction. The theory of behavioural finance (which links psychology with financial decision-making) has explanatory significance due to its relationship with ethics and social responsibility. As research indicates, investment and ethics have a mutually beneficial relationship. Thus, investors should make decisions that uphold their ethical principles, morals and values, and invest their money according to those principles or values.

In undertaking the hypothesis testing, primary and secondary data was employed through various data processing methods. The data processing techniques were used to assess the fit of the research model and come to a conclusion based on the results. The discussion of these results stated that ethical variables have a significant positive effect on financial satisfaction. Additionally, ethics has a significant positive effect on investor behaviour, meaning ethics is a significant driver of the behaviour of capital market investors, with 41.4% of decisions solely based on ethics, according to the R-squared statistic obtained from the data.

Finally, investor behaviour is also a significant factor affecting financial satisfaction, particularly in the context of the subjective well-being theory. The subjective well-being theory is believed to clarify this relationship in part by drawing a link between financial satisfaction and individual internal factors (e.g. positive emotions) experienced in making financial decisions and the results of those decisions.

Based on these results, the bottom line is that ethics significantly affect financial satisfaction positively through investor behaviour. Generally, investors behave in accordance with the ethics they believe and this, in turn, leads to financial satisfaction acquired from the result of those behaviours being in harmony with their ethics.

In essence, although the screening process limits investment options thus increasing the exposure to risk (due to lower diversification), compared to simply considering risk and return alone, investors derive a greater level of financial satisfaction when their behaviour is in line with their ethics. The ensuing result of this is the rejection of the neo-classical economics theory as investors seek more than just return and risk in making investment decisions.

1. Investment decisions are increasingly being driven by ethical concerns and investors' behaviour being in line with ethics is a reflection of the change in societal values and preferences and this calls for companies to be more ethical and transparent.
2. Behavioural finance, a relatively modern theory, helps to explain the psychological factors in making economic decisions and its application by Tversky and Kahneman (1974) in investigating the bias of investor behaviour, provides clarification on the effect of ethics on financial satisfaction.
3. Subjective well-being is a person's evaluation of his or her life, based on both a cognitive (life as a whole) sense and on an affective (emotions, feelings) sense. The subjective well-being theory holds merit in explaining this phenomenon when applied in the domain of finance, for which investor behaviour in accordance with ethics leads to greater financial satisfaction.
4. In harmony with the subjective well-being theory, financial satisfaction is influenced by investor behaviour in two ways; individual internal factors such as personal satisfaction, and objective variables of income and age.
5. Financial satisfaction is one of the determinants of overall welfare and happiness, so investors should strive to achieve a greater level of financial satisfaction - which is influenced by personal satisfaction sourced from making ethical decisions.
6. Investors should employ strategies to determine the best investment option that upholds their ethical values and beliefs. One such strategy could be the thematic approach, which allows investors to invest in personal convictions thus increasing personal and financial satisfaction.
7. Ethical investing also has flow-on benefits for financial service providers and their dealings with ultimately more satisfied and contentful clients, as well as a more overall efficient allocation of resources to ethical firms or industries.
8. Many of the ideas and concepts mentioned in this research were put forward by other researchers and journalists such as Michalos (social indicators of satisfaction and happiness), Falahati et. al (assessing financial satisfaction predictors) and Hussein and Khaled (empirical evidence of ethical investment).