Three Essays on Sustainable Finance and Behavioral Insights: Exploring Sustainability, Inclusion, and Decision-Making Dynamics

Abstract

This dissertation examines critical intersections between sustainable finance, financial inclusion, and executive behavioural influences on corporate decision-making. The first paper investigates the role of energy efficiency in the U.S. residential real estate market, highlighting how climate-conscious beliefs drive the pricing of sustainable homes. Using a hedonic pricing model, the study demonstrates that homes with higher energy ratings command a premium, especially in regions with prominent sustainability concerns. The second paper investigates how a CEO’s birth order impacts corporate risk-taking behaviour. Using data from Chinese firms listed on U.S. exchanges, this study demonstrates that later-born CEOs are more inclined to engage in risk-taking through increased capital expenditure, R&D, and acquisition activities. The research controls for variables such as CEO tenure, political connections, and firm size, revealing robust empirical evidence of how sibling dynamics influence executive decision-making and firm strategies. The third paper explores the dynamics of peer-to-peer (P2P) lending platforms during the COVID-19 pandemic, assessing how they balance financial inclusion with their profit-driven nature. The research highlights a flight to quality phenomenon during times of crisis, as well as the platforms’ evolving lending criteria to maintain profitability while supporting access to credit for diverse borrower groups. Together, these studies contribute to our understanding of sustainable and behavioural finance and their role in shaping economic and social resilience, with implications for policymakers and financial institutions focused on equity and environmental awareness.