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Herding Behavior, Financial Literacy, and the Adoption of Socially Responsible Investment by Individual Investors: A Systematic Literature Review Astuti, Rara; Dwiatmanto; Worokinasih, Saparila
APMBA (Asia Pacific Management and Business Application) Vol. 15 No. 1 (2026)
Publisher : Department of Management, Faculty of Economics and Business, Brawijaya University

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.21776/

Abstract

Despite the global growth of Socially Responsible Investment (SRI), individual investor adoption remains limited. This study synthesizes empirical evidence on the interplay between herding behavior and financial literacy in influencing SRI adoption. Following PRISMA 2020 guidelines, a Systematic Literature Review (SLR) was conducted across Scopus, ScienceDirect, and SpringerLink (2015-2025). From an initial set of 755 records, 23 peer-reviewed studies were selected through the MMAT 2018 quality assessment and analyzed using thematic synthesis. Findings reveal a geographical divergence: herding behavior positively impacts SRI adoption in India, Egypt, and Japan through social conformity. Conversely, a negative effect is observed in Indonesia, driven by social media influence and Fear of Missing Out (FoMO), leading to investment fatigue. Notably, sustainable finance literacy is a stronger predictor of SRI adoption than basic financial literacy and serves as a critical cognitive moderator against irrational herding biases. Furthermore, digital financial literacy emerges as a vital dimension in navigating complex ESG information. This research provides an integrative framework for policymakers and financial institutions to promote sustainable investment by enhancing investors' specific cognitive capacities and tailoring strategies to mitigate localized behavioral biases.
Co-Authors -, Kusdi Achmad, Riza Putra Achmadinata, Raihan R. D. Adeirla Putri Saraswati Oktaviana Adhela Ghina Rachmatika Agung Nugroho Luthfi Imam Fahrudi Alfiani, Firda Ali, Shofan H. Anam, Afrizal K. Angelina Palloan Primawardani Ardelia Rezeki Harsono Ari Darmawan Arik Prasetya, Arik Asmoro, Priandhita Sukowidyanti Astuti, Rara Augustin, Jeneva Aulya Dhinda Putri, Ridha Aurellia Prasetiya Avikamalia Trisnawati Awilia, Zefanya Cacik Rut Damayanti Cacik Rut Damayanti Dania Nabila Clarasati Darma Aji Ramadhani Diah Tri Handayani Putri Dian Eka Ratnawati Dicky Bery Diwa Ayu Permata Sari Dwiatmanto Edlyn Khurotul Aini Fadhila, Nia A. Fahrudi, Agung N.L.I Ferina Nurlaily Ferina Nurlaily Firasari Nukmaningtyas Fuaida, Roudhotul Ghaissani, Jasmine Hanifa Maulani Ramadhan Hapsari, Addelia P. Hasibuan, Herida Hafni Hermawan, La Ode Andi Herni Ruliatul Kasanah Hidayatulah Fikri Indra Aulia Hikmah, Mukhibatul Ibnu Reza Prasetya Indah Ayu Felany Jenny Moh Sui Chien Kadarisman Hidayat Karimah, Awalinda Kartika, Annisa Wuri Kasanah, Roisatun Khofifatunnabilah, Khofifatunnabilah Latifah Hanum Margaretha, Eirine D. A. Meda Muhammad Subekti Mirzavira Elvisa Anggi Firdaus Muhammad Saifi Muhammad Yasir Mumtaz Muhana, Naufal A. Mustafa, Muthyah Ainunsary Nila Firdausi Nuzula Normawati, Rani Arifah Nur Imamah Nuralam, Inggang Perwangsa Onni Meirezaldi Panjaitan, Natanael Prandita Sabda Kristarti Priandhita Sukowidyanti Asmoro Puji Handayani Putri, Hajeng P. A. Qoyyima Zulqarnaen Rafi Bintang Saputra Rahma Sugiharto Putra Raisha, Serefika Restu Hilal Maulana Rizki Prafitri Rizky Anisatus Sholikhah Sandi, Kemal Sazkiya, Lubna D. Septa Lukman Andes Setyowati, Andri Shafira Indie Diva Hartono Sri Mangesti Rahayu Suroto Suroto Thongvanh Sirivanh tri wahyuni Utomo, Yoga Cahyo Vitra Islami Ananda Widyasa Wahyono, Agatha Christy Wicaksono, Moch.Fikriansyah Yan Rathih Kumala Sari Dewi Yudi, Alqudri Ramadani