Exploring the psychology behind sustainable investment choices in ESG markets

This study examines psychological determinants of sustainable investment behavior among Indonesian ESG investors. Survey data from 180 individual investors were analyzed using PLS-SEM to test the relationships between investor attitude, belief, and perception with perceived return and sustainable investment behavior. Results show that perception and belief significantly influence perceived return and investment behavior, while attitude does not. Perceived return mediates the link between cognitive factors and behavior, highlighting the role of rational expectations and belief-based confidence in ESG investment. The findings emphasize the importance of transparent ESG disclosure for bridging the attitude–behavior gap in practice.