---
title: ESG and Behavioral Finance: Why ESG Investing Is Primarily a Psychological Phenomenon
url: https://www.ml-quant.com/papers/ssrn/4786610/
site: ML-Quant (https://www.ml-quant.com)
updated: 2026-09-26
license: Summaries CC BY 4.0; links go to the original sources
index: https://www.ml-quant.com/llms.txt
identifier: SSRN 4786610
source_url: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4786610
featured: 2024-04-10
citations: 5
topic: Portfolio & Allocation
---


# ESG and Behavioral Finance: Why ESG Investing Is Primarily a Psychological Phenomenon

A Psychological Phenomenon: The study expands traditional portfolio selection and asset pricing theory to include ESG investing, introducing two behavioral innovations related to investor preferences and biased judgments about ESG impact and return distributions.

- Source: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4786610
- Identifier: SSRN 4786610
- Released: 2024-04-06
- First featured: Quant Letter No. 44 (2024-04-10): https://www.ml-quant.com/issues/2024-04-10/
- Citations (Semantic Scholar): 5
- Published in: not yet
- Topic: Portfolio & Allocation

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