An Empirical Examination of Behavioral Biases and Investment Decision-Making: Evidence from Retail Investors
Keywords:
Rationality, Mainstream Economics, Investor Behavior,, Behavioral Finance, Psychological Biases,, Heuristics, Emotional Factors,, Perception Factors,, Social Influence, Decision-Making,, Information Efficiency, Empirical Evidence,, Cognitive Biases, Investor Psychology, Market PredictionsAbstract
The mainstream economics paradigm presupposes that investors are complete rationality, and they take their decision on the basis of all the information (Fama, 1970). However, there is an increasingly accumulating amount of empirical data that indicates otherwise, in the sense that investors tend to use psychological shortcuts and biases (Tversky and Kahneman, 1974; Barberis, 2018). Therefore, emotional, perception factors and social influences are some of the issues of behavioral finance that make decisions in a manner that is arguably rational, or not in accordance with model prediction.
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2025-09-30
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Razzaq, M. F. (2025). An Empirical Examination of Behavioral Biases and Investment Decision-Making: Evidence from Retail Investors. International Journal of Business, Management & Financial Insight, 1(3), 25–29. Retrieved from https://scholarclub.org/index.php/IJBMFI/article/view/120
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