Proceedings of the Sustainability in emerging economies - Integrating business excellence in management education (SEE-IBEME-2024)

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Behavioral Finance and Sustainability: Unveiling Risk Biases in Investment Decisions

Authors
Aradhana Sorout1, *, N. P. Singh2, Anil Anand Pathak3
1Research scholar, MVN University, Aurangabad, India
2Professor, MVN University, Aurangabad, India
3Associate Professor, MDI Gurgaon, Gurgaon, India
*Corresponding author. Email: Aradhanasorout01@gmail.com Email: aradhana.sorout@mvn.edu.in
Corresponding Author
Aradhana Sorout
Available Online 6 May 2025.
DOI
10.2991/978-94-6463-696-3_11How to use a DOI?
Keywords
‘Behavioral risk biases’; ‘Sustainable business practices’ (SBP); ESG considerations; ‘Investment decision making’
Abstract

Traditional belief holds that goals of sustainable investment and financial returns are at odds with each other. However, progressive investors argue that this perceived conflict can be eased through a strategic approach that aligns economic goals with environmental, social, and governance (ESG) considerations. ESG considerations are now being incorporated into their decision-making procedures, prioritizing sustainability even it may require sacrificing financial gains. On the contrary, investors who are less aware might not concentrate on sustainability. Thus, it was thought prudent to conduct research to examine the nuanced relationship between “Sustainable Business Practices” (SBP) and the behavioral risk biases of individual investors specifically, “risk perception” and “risk-taking propensity”. By analyzing data from Indian stock market investors collected via a structured questionnaire, this research paper uses ‘Partial Least Squares Structural Equation Modeling’ (PLS-SEM) technique backed by boot-strapping method. This empirical analysis revealed key insights about the impact of “Sustainable Business Practices” (SBP) on “investment decisions” and integration of ESG considerations in financial decision making.

Copyright
© 2025 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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Volume Title
Proceedings of the Sustainability in emerging economies - Integrating business excellence in management education (SEE-IBEME-2024)
Series
Advances in Economics, Business and Management Research
Publication Date
6 May 2025
ISBN
978-94-6463-696-3
ISSN
2352-5428
DOI
10.2991/978-94-6463-696-3_11How to use a DOI?
Copyright
© 2025 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

risenwbib
TY  - CONF
AU  - Aradhana Sorout
AU  - N. P. Singh
AU  - Anil Anand Pathak
PY  - 2025
DA  - 2025/05/06
TI  - Behavioral Finance and Sustainability: Unveiling Risk Biases in Investment Decisions
BT  - Proceedings of the Sustainability in emerging economies - Integrating business excellence in management education (SEE-IBEME-2024)
PB  - Atlantis Press
SP  - 169
EP  - 179
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-696-3_11
DO  - 10.2991/978-94-6463-696-3_11
ID  - Sorout2025
ER  -