Yuliani

Capital market functions as a mediator between parties who have excess funds that is, investors and those who need the funds that is, emitents. Decision to sell and buy shares of a financial asset is very strategic decision for investors because it is associated with the chances of return to be earned in the future. The objective of this paper is to investigate the investor’s psychology on buying and selling common stock in the stock exchange in emerging market. The specific purpose of this research is to provide the simultaneous empirical evidence about the perception of risk, psychology aspects towards the confidence and performance. The sample consists of 100 individual investors in Palembang, South Sumatera, Indonesia. The data were collected during March-May 2016 using questionnaire. Research findings show that perception of risk and psychology significantly affect confidence. Furthermore, confidence has a significantly positive impact on performance. This research has not been explained entirely towards the investor’s psychological behavior aspects, so the additional variable may be needed as the full reflection of investor’s psychology. The further research may use experimental study, starts from buying stocks, and factors that can be considered in selling stock.

Type of the article: Research Article

Abstract
The growing global demand for the integration of strong corporate governance in the banking industry is essential for enhancing financial performance. However, the interactive role of sustainable finance in strengthening governance mechanisms remains relatively underexplored. This study aims to examine whether adopting sustainable finance practices strengthens corporate governance mechanisms in the banking sector in ASEAN countries during the period 2018–2022. Utilizing the Fixed Effects Model, this study presents a notable finding. The results indicate that the interaction between management scores and green bonds has a positive and significant effect on Return on Assets, whereby a 5% increase in green bonds exposure raises ROA by 0.248, but exerts a negative effect on Return on Equity, with a decrease of 0.340 for every 1% increase. In contrast, the interaction between shareholder scores and green bonds has a negative and significant impact on ROA, with a decline of 0.223 for each 5% increase, while positively influencing ROE by 0.222 for every 1% increase. This study confirms that green bonds asymmetrically moderate the relationship between corporate governance and banking performance, in which management-oriented governance enhances asset efficiency but suppresses ROE, whereas shareholder-oriented governance reduces ROA while improving ROE. Conceptually, green bonds function as a balancing mechanism between corporate governance and banking performance, whereby managerial governance improves asset efficiency at the expense of equity returns, while shareholder-based governance enhances ROE with the trade-off of lower ROA.