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Article . 2026
License: CC BY
Data sources: ZENODO
ZENODO
Article . 2026
License: CC BY
Data sources: Datacite
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Behavioural Finance Perspectives On Esg Investment Decision-Making

Behavioural Finance Perspectives On Esg Investment Decision-Making

Abstract

This study examines the behavioural finance dimensions of Environmental, Social, and Governance (ESG) investment decision-making among individual investors. Drawing on a structured survey of 106 respondents analysed using multiple regression, chi-square tests, ANOVA, and correlation analysis in R 4.2.0, the research investigates how cognitive biases, emotional influences, risk perceptions, and personal value systems shape ESG portfolio allocation decisions. Key findings reveal that value alignment (β = 0.452, p < 0.001) and emotional influence (β = 0.325, p < 0.001) are the strongest behavioural predictors of ESG commitment, jointly explaining 58.47% of variance in portfolio allocation. Risk perception significantly moderates ESG adoption (χ² = 42.376, p = 0.0003), with novice investors perceiving substantially higher risk than experienced peers. Personal values and ethical motivations emerge as the most consistent drivers: investors with strong value alignment are 3.48 times more likely to hold high ESG allocations (OR = 3.48, p < 0.001). These findings challenge purely rational models of investor behaviour and provide actionable insights for asset managers, financial advisors, and policymakers seeking to expand sustainable finance participation.\\n\\n

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selected citations
These citations are derived from selected sources.
This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Citations provided by BIP!
popularity
This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
BIP!Popularity provided by BIP!
influence
This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Influence provided by BIP!
impulse
This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
BIP!Impulse provided by BIP!
0
Average
Average
Average