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Behavioural Finance and Ethical Investing

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Behavioural Finance and Ethical Investing Synopsis

Contextualising the effective and ineffective approaches to Environmental, Social, and Governance (ESG) implementation across the globe from a behavioural finance perspective, this book covers a range of considerations that must be made when firms choose the sustainable path.

This book begins with a critical examination of ESG investing and assumption that they consistently deliver superior financial returns. It then explores how cognitive distortions, incorrect information, and technological innovations may impact ethically motivated investors, leading them to make choices that are behaviourally vulnerable if not irrational. This book looks at established and emerging markets in diverse regions such as Asia, Europe, and the United States to discuss prevailing market narratives that may influence investor decisions. It also presents empirical insights from 400 survey respondents and 50 interview participants in emerging markets, highlighting how investment thinking continues to be shaped by local norms and environments.

This book highlights the importance of context-specific engagement and provides practical suggestions on how to promote more rational ESG investing. This book will be of use to courses on behavioural finance, sustainable investing, and ESG in Finance.

About This Edition

ISBN: 9781041161806
Publication date:
Author: Kok Loang Ooi, Wee Yeap Lau
Publisher: Routledge an imprint of Taylor & Francis
Format: Hardback
Pagination: 238 pages
Series: Routledge International Studies in Money and Banking
Genres: Microeconomics
Environmental economics
Investment and securities
Psychological theory, systems, schools and viewpoints
The environment

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