BEHAVIOURAL FINANCE BIASES AND SUSTAINABLE INVESTMENT DECISIONS: THE MEDIATING ROLE OF RISK PERCEPTION AND THE MODERATING ROLE OF DIGITAL TRUST
DOI:
https://doi.org/10.59415/mjacs.320Keywords:
Financial literacy, Digital trust, Sustainable Investment Choices, Behavioural Finance BiasesAbstract
This study examines how behavioral biases influence sustainable investment decisions. Using survey data and Structural Equation Modeling (SEM) in SmartPLS, findings show that overconfidence, herding, loss aversion, and anchoring significantly affect sustainable investment behavior. Risk perception moderates these relationships, while digital trust and financial literacy mediate & shape sustainability-oriented choices. The study integrates psychological and technological perspectives within behavioral finance and provides practical implications for policymakers, financial institutions & fintech providers to strengthen investor awareness and digital trust. However, the research is limited by its design and reliance on self-reported data, suggesting the need for longitudinal, cross-cultural & mixed-method studies in future research.
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