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.
The 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. The book looks at established and emerging markets in diverse regions such as Asia, Europe and the US 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.
The 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.
Rezensionen / Stimmen
Behavioral Finance and Ethical Investing is a simple and helpful book that explains how psychology and human behavior affect the stock market. It helps readers understand why investors often make bad choices and how technology and events across the world affect judgments by integrating research with real-life examples. The book also has useful tips for making better financial decisions and policies. It will be very helpful for students, researchers, and professionals who are keen to learn more about the human side of money.
Sevenpri Candra, Professor, BINUS Business School, Indonesia
This book makes a compelling case for rethinking classical models in light of empirical evidence on bounded rationality, sentiment, and social influence, making it a essential reference for anyone engaged in financial research or policy design.
Lee Kean Yew, Senior Lecturer, Department of Chinese Studies, University of Malaya, Malaysia
This book offers a compelling exploration of how psychology, culture, and technology shape financial behaviour across global markets. It provides valuable insights for anyone seeking to understand the forces that influence both market outcomes and organizational decisions, and I highly recommend it to students, academics, and practitioners alike.
Nor Fairuz Syazana Nor Fauzi, Deputy Dean of Graduate School, Malaysia
The book's most compelling aspect is its blend of empirical rigour with applied case studies, particularly the insights into the 2015 Chinese stock market crash and Islamic investor sentiment. The strength of this work lies in its wide geographic scope, making it a valuable contribution to the underexplored domain of behavioural finance in emerging and frontier markets. I particularly appreciate the emphasis on investor reactions to shocks such as COVID-19, and the growing influence of Gen Z's trading behaviour, shaped by influencers.
Naveenan R.V, Associate Professor, Christ University, India
This book succeeds in translating complex ideas from behavioral finance into clear insights about how emotions, culture, and technology influence investment choices. It is both accessible and rigorous, offering guidance not only for students and researchers but also for policymakers and practitioners who want to better understand the human side of financial markets.
Suresh G., Associate Professor, Symbiosis International University, India
Reihe
Sprache
Verlagsort
Verlagsgruppe
Zielgruppe
Für höhere Schule und Studium
Postgraduate and Undergraduate Advanced
Illustrationen
10 s/w Tabellen, 10 s/w Photographien bzw. Rasterbilder, 10 s/w Abbildungen
10 Tables, black and white; 10 Halftones, black and white; 10 Illustrations, black and white
Maße
Höhe: 234 mm
Breite: 156 mm
ISBN-13
978-1-041-16180-6 (9781041161806)
Copyright in bibliographic data and cover images is held by Nielsen Book Services Limited or by the publishers or by their respective licensors: all rights reserved.
Schweitzer Klassifikation
Kok Loang Ooi, LLM, CMIIA, CIA is with the Faculty of Business and Economics, Universiti Malaya, specializing in behavioural finance, ESG investing, and AI in financial markets. He has published over 60 articles in Web of Science and Scopus-indexed journals, including works on herding behaviour, investor sentiment, and overreaction in financial markets. He also serves as Chief Economist at Censuria Capital and Chairman of the Strategic Finance Research Centre.
Norazlin Binti Ab Aziz is Senior Lecturer in Finance at Universiti Malaya. Her research spans Islamic finance, sustainable economics, and the Malaysian carbon market. She has published in leading outlets such as the Journal of Islamic Accounting and Business Research, where she is Associate Editor. Her work explores the intersection of financial decision-making, language, and sustainability, reflecting both her academic and professional experience in the unit trust industry.
Wee Yeap Lau is Professor of Economics at Universiti Malaya and Academic Board Member of the Asia-Europe Institute. His research covers insurance economics, financial engineering, and policy design. He has published over 70 articles in Web of Science journals and authored two books with Palgrave Macmillan. A recipient of the MEXT scholarship and AUA Fellowship, he has held visiting positions at Osaka University, the National University of Singapore, and UAE University.
About the Authors
Abstract
Funding
Preface
Acknowledgement
CHAPTER 1: RETHINKING ESG: IDEALS, REALITIES, AND BEHAVIORAL VULNERABILITIES
? 1.1 Introduction: Deconstructing the ESG Ideal
? 1.2 From Rationality to Reflex: Theoretical and Behavioural Grounding
? 1.3 ESG in Action: Global Illustrations of Ethical Inconsistency
? 1.4 Survey Reflections: What Investors Say vs. What They Do
? 1.5 Narrowing the Gap: Policy, Strategy, and Psychological Realism
? 1.6 Conclusion: Rethinking ESG through a Behavioral Lens
CHAPTER 2: PROFITABILITY VERSUS PRINCIPLE: THE FINANCIAL TRADE-OFFS IN ESG INVESTING
? 2.1 Introduction: Rethinking the ESG Payoff
? 2.2 Literature and Theory: ESG Returns Through a Behavioral Lens
? 2.3 Global Tensions: Ethical Branding and Financial Reality
? 2.4 What the Data Shows: ESG Beliefs vs. Investment Actions
? 2.5 Closing the Gap: Practical Interventions and Policy Tools
? 2.6 Conclusion: Beyond the ESG Narrative
CHAPTER 3: THE TRUMP EFFECT AND ESG BACKLASH: POLITICAL RISKS AND MARKET REACTIONS
? 3.1 Introduction: Unmasking the Political Vulnerability of ESG
? 3.2 When Regulation Reverses: Political Economy and Behavioural Finance
? 3.3 Political Shockwaves: ESG Case Studies from the Trump Era
? 3.4 Investor Reactions: Survey Evidence on Political Risk Perception
? 3.5 Strengthening ESG Resilience in Politicised Markets
? 3.6 Conclusion: ESG in an Age of Ideological Volatility
CHAPTER 4: CRACKS IN THE INVESTOR LENS: COGNITIVE BIASES IN ESG INVESTMENT
? 4.1 Introduction: The Myth of Rational ESG Investing
? 4.2 Mapping the Bias Landscape: Theory and Literature
? 4.3 Global Patterns of ESG Misjudgment
? 4.4 Surveying Bias in Action: Insights from Malaysian Investors
? 4.5 Educating the ESG Mindset: Behavioural Solutions
? 4.6 Conclusion: Toward a More Rational ESG Investor
CHAPTER 5: THE ILLUSION OF GREEN: GREENWASHING, CREDIBILITY RISKS, AND MARKET FAILURES
? 5.1 Introduction: Green on the Surface: ESG's Credibility Crisis
? 5.2 Rating Sustainability: Theory and Critiques of ESG Metrics
? 5.3 Behind the Green Curtain: Case Examples of Reputational Engineering
? 5.4 Insights from the Field: Interviews with Malaysian ESG Professionals
? 5.5 Restoring Trust: Institutional and Behavioural Solutions
? 5.6 Conclusion: Reclaiming Substance in Sustainable Finance
CHAPTER 6: CONFIDENCE GAMES AND HERD INSTINCTS: BEHAVIORAL DISTORTIONS IN SUSTAINABLE MARKETS
? 6.1 Introduction: ESG Safety Illusion
? 6.2 Theoretical Fault Lines: Overconfidence and Collective Irrationality
? 6.3 ESG Boom-Bust Cycles: Global Case Reflections
? 6.4 Interview Insights: Herding and Overconfidence in Malaysian ESG Behavior
? 6.5 Managing Momentum: Behavioural Risk Controls for ESG Portfolios
? 6.6 Conclusion: Rethinking ESG as a Social Signal
CHAPTER 7: MALAYSIA'S DUAL ESG FRAMEWORK: INTEGRATING ISLAMIC FINANCE AND SUSTAINABLE INVESTING
? 7.1 Introduction: Sustainability Meets Syariah
? 7.2 Literature and Theoretical Grounding: Harmonising Ethical Systems
? 7.3 Real-World Convergence: Institutional and Policy Innovations in Malaysia
? 7.4 Evidence from the Ground: Questionnaire Insights from Malaysian ESG Stakeholders
? 7.5 Advancing Dual Integrity: Policy and Behavioral Recommendations
? 7.6 Conclusion: A Malaysian Model of ESG Convergence
CHAPTER 8: ASIA'S ESG MOMENTUM: GROWTH NARRATIVES AND STRUCTURAL VULNERABILITIES
? 8.1 Introduction: The Rise of ESG in Asia
? 8.2 Literature and Theory: Asia's ESG Push Through a Structural Lens
? 8.3 Reality Check: Regional Case Studies of ESG Contradictions
? 8.5 Rethinking ESG Credibility: Regional Solutions and Behavioural Correctives
CHAPTER 9: EUROPE'S ESG LEADERSHIP: REGULATORY INNOVATION AND HIDDEN INEFFICIENCIES
? 9.1 Introduction: Reframing Europe's ESG Reputation
? 9.2 Theory Meets Bureaucracy: ESG Regulation in the EU
? 9.3 Lost in Translation: Case Examples of ESG Mislabeling and Reclassification
? 9.4 Field Reflections: Questionnaire Insights from EU ESG Professionals
? 9.5 Reforming the Framework: Making ESG Regulation Work
? 9.6 Conclusion: Rethinking ESG Leadership
CHAPTER 10: THE UNITED STATES AND ESG: POLITICAL REVERSALS, INVESTOR RESISTANCE, AND MARKET ADAPTATIONS
? 10.1 Introduction: ESG's Politicisation in America
? 10.2 Reversals and Repercussions: Unpacking Federal and State-Level ESG Conflicts
? 10.3 Realignment in Practice: Case Evidence from Institutional Investors
? 10.4 Interviews from the Frontlines: How U.S. ESG Leaders Are Adapting
? 10.5 Surveying the Divide: Evidence from ESG Practitioners Nationwide
? 10.6 Conclusion: Lessons from Fragmented Markets
CHAPTER 11: ESG TECHNOLOGY, INVESTOR JUDGMENT, AND LOCAL ADAPTATION
? 11.1 Introduction: Digital Disruption in ESG Investing
? 11.2 Algorithmic Oversight: Theoretical Anchors and Behavioural Tensions
? 11.3 Embedded or Erased? Case Reflections from Malaysian Fund Managers
? 11.4 Quantifying Local Frictions: Survey Insights from ESG Practitioners
? 11.5 Conclusion: Tech and Local Insight
CHAPTER 12: PLANNING ESG FUTURES: GLOBAL SCENARIOS AND REGIONAL VALUES
? 12.1 Introduction: ESG Beyond a Universal Blueprint
? 12.2 Worldviews That Matter: Theoretical Foundations and Cultural Anchors
? 12.3 Futures as Perceived: Survey Results from Asian ESG Professionals
? 12.4 Voices of Vision: Interview Insights from ESG Policymakers and Thought Leaders
? 12.5 Competing Horizons: Scenario Mapping and Strategic Differentiation
? 12.6 Conclusion: Toward Inclusive ESG Futures
