<![CDATA[Purpose: This study provides empirical evidence on the roles of green finance literacy and behavioral biases in shaping investors' behavior by considering the mediating role of risk perception.Research Methodology: Primary data were collected from 157 Indonesian retail investors using purposive sampling. Data were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) with SmartPLS 4.Results: Green finance literacy positively affected investors' behavior and risk perception. Herding behavior influenced risk perception but had no direct effect on investors' behavior, while overconfidence positively affected investors' behavior but not risk perception. Risk perception positively influenced investors' behavior and mediated only the effect of green finance literacy.Conclusions: Investors' behavior is jointly influenced by sustainable financial knowledge, behavioral biases, and risk evaluation. Risk perception serves as a key mechanism linking green finance literacy to investors' behavior.Limitations: This study was limited to Indonesian retail investors and employed a cross-sectional research design.Contributions: This study advances the behavioral finance and sustainable finance literature by providing new empirical evidence on the mediating role of risk perception in shaping investment decisions, thereby extending existing models beyond direct-effect relationships. The findings offer practical implications for developing investor education strategies and strengthening regulatory approaches in Indonesia.]]>
