Behavioural Finance and Ethical Investing (Routledge International Studies in Money and Banking)

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.

Kok Loang Ooi, LLM, CMIIA, CIA, is an Adjunct Professor at City University Malaysia and a leading scholar in behavioural finance. He holds a PhD in Behavioural Finance and an MA in Finance from Universiti Sains Malaysia and an LLM in Business Law from the International Islamic University Malaysia. Formerly with KPMG, he has extensive experience in audit and advisory services. His research focuses on herding behaviour, investor sentiment, overreaction, ESG investing, cognitive biases, and AI‑driven financial markets. A Certified Internal Auditor and a member of The Institute of Internal Auditors Malaysia, Dr. Ooi has published over 60 articles in Web of Science and Scopus‑indexed journals and is regularly invited to speak at international academic and policy forums.

Wee Yeap Lau is a Professor at the Faculty of Business and Economics and an Academic Board Member of the Asia‑Europe Institute, Universiti Malaya. A former MEXT scholar at Osaka University and AUA Fellow at UAE University, he has also been a Visiting Scholar at the National University of Singapore’s Risk Management Institute. He holds a PhD and an MA in Economics from Osaka University and an MSc in Financial Engineering from NUS, supplemented by executive training at Princeton University. He has published over 70 Web of Science‑indexed articles, authored two books with Palgrave Macmillan, and contributed to professional publications for the Malaysian Insurance Institute and University Press. He is a member of CPA Australia and an elected member of the International Statistical Institute, with research interests in insurance economics, financial engineering, and policy design.