Published Online:July 2026
Product Name:The IUP Journal of Accounting Research & Audit Practices
Product Type:Article
Product Code:IJARAP100726
DOI:10.71329/IUPJARAP/2026.25.3.187-199
Author Name:A Charles Ambrose and K Alex
Availability:YES
Subject/Domain:Finance
Download Format:PDF
Pages:187-199
The growing importance of green finance as a mechanism for promoting sustainable development has intensified interest in understanding the behavioral factors influencing investors’ adoption of environmentally responsible financial products. This paper examines the role of behavioral biases in shaping green finance adoption across generational cohorts among urban investors in Bengaluru, India. Using a quantitative, cross-sectional research design, primary data were collected from 412 retail investors representing Generation Z, Millennials, and Generation X through a structured questionnaire. Reliability and validity analysis, multiple regression, analysis of variance, and multi-group structural equation modeling were employed for data analysis. The findings reveal that loss aversion, status quo bias, and familiarity bias significantly impede green finance adoption, while herding behavior positively influences adoption, particularly among younger cohorts. The study contributes to behavioral finance literature by integrating generational cohort theory with green finance adoption in an emerging market context and offers actionable managerial and policy insights.
Green finance refers to the integration of environmental considerations into financial decision making, facilitating investments in projects that promote a low-carbon and resource-efficient economy. This includes ‘green financial products’ such as green bonds, environmental, social, and governance (ESG) mutual funds, and sustainable fixed deposits, which allow retail investors to align their portfolios with ecological goals. Furthermore, ‘generational differences’ are crucial in this context because cohorts like Gen Z, Millennials, and Gen X have been shaped by vastly different economic and technological landscapes.