Do ESG Perceptions Discipline Irrational Investing Among Generation Z Investors?

Andien Kirana Priliyanti (Sekolah Tinggi Ilmu Ekonomi YKPN Yogyakarta)
Baldric Siregar (Sekolah Tinggi Ilmu Ekonomi YKPN Yogyakarta)
Miswanto (Sekolah Tinggi Ilmu Ekonomi YKPN Yogyakarta)
Frasto Biyanto (Sekolah Tinggi Ilmu Ekonomi YKPN Yogyakarta)

Agregat: Jurnal Ekonomi dan Bisnis
Vol. 10 No. 2 (2026)

This study aims to examine the effects of herding behavior, overconfidence bias, and loss aversion bias on the investment decisions of Generation Z investors in Indonesia and to investigate the moderating role of Environmental, Social, and Governance (ESG) perception. A quantitative approach with an associative-causal survey design was employed. Data were collected from Indonesian Generation Z investors using purposive sampling and analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM). The findings indicate that herding behavior and overconfidence bias positively influence investment decisions, whereas loss aversion bias has no significant effect. ESG perception moderates the effects of overconfidence bias and loss aversion bias but does not moderate the effect of herding behavior. These findings suggest that ESG perception selectively moderates behavioral biases, with implications for ESG literacy and investment decision-making among Generation Z investors