Beyond Rational Choice: Psychological Biases and the Green Investment Adoption Behaviour among Government Bank Employees in Assam, India

This study investigates the impact of overconfidence, herding behaviour, availability bias, loss aversion, mental accounting, and anchoring bias on green investment adoption behaviour among government bank employees in Assam, India. Based on Behavioural Finance Theory, the study also examines variations in these psychological biases across age, gender, income, and education groups. A quantitative, cross-sectional research design was employed, and data were collected through structured questionnaires from 106 government bank employees. PLS-SEM was used to examine the relationships between psychological biases and green investment adoption behaviour, while appropriate group-comparison techniques were applied to explore differences across demographic groups. The findings revealed that availability bias, anchoring bias, mental accounting, and herding behaviour had significant effects on green investment adoption behaviour, whereas overconfidence and loss aversion had no significant effects. The findings have implications for financial institutions and policymakers seeking to design more effective investor education, communication, and green-finance initiatives.