Impact of Behavioral Biases on Investment Decisions: Theoretical and Research Gap Review
Keywords:
Heuristic, Prospect bias, Market variables, Herding, Risk-perceptionAbstract
This study contributes to creating a theoretical and research gap by identifying behavioural biases in investment decisions by reviewing the available literature in the field of behavioural finance-related biases. The analysis reveals that behavioural finance is a relatively new field of study in finance, and not much worthwhile work is being done. This paper assists in identifying a significant research gap and prevalent behavioural biases in the investment decision-making process. Moreover, this study helps researchers and academicians develop a reliable theoretical framework by thoroughly reviewing the literature on behavioural biases.
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