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Behavior biases and investment decision: theoretical and research framework

Satish K. Mittal (School of Management, Gautam Buddha University, Greater Noida, UP, India)

Qualitative Research in Financial Markets

ISSN: 1755-4179

Article publication date: 27 June 2019

Issue publication date: 13 April 2022




This paper developed a theoretical and research framework by identifying the behavioral biases in investment decision and by presenting a review of the available literature in the field of behavior finance-related biases. This paper aims to present a compressive review of the literature available in the public domain in past five decades on behavior finance and biases and its role in investment decision-making process. It also covers insights on the subject for developing a deeper understating of the behavior of investor and related biases.


The work follows the comprehensive literature review approach to review the available literatures. The review carried out on different parameters such as year of publication, journal of publication, country, type of research, data type, statistical technique used and biases identified. This is a funnel approach to decrease the number of behavior biases up to six for further research.


Most of the existing works have summarized behavior finance as an emerging area in finance. This indicates the limited valuable research in developing economy in this area. This literature review helps in identifying major research gap in this domain. It helps in identifying the behavior biases which work dominantly in investment decision-making. It would be interesting to explore the area of behavior biases and their impact on investment decision of individual investors in India.


This paper worked on literature prevailing on the subject and available on various online research data source and search engines. It covers a long time frame of almost five decades (1970-2015). This paper is an attempt to look at the impact of behavior finance and biases and its role in investment decision-making process of the investor behavior. This study builds up a strong theoretical framework for researchers and academicians by detailed demonstration of available literature on behavior biases.



Mittal, S.K. (2022), "Behavior biases and investment decision: theoretical and research framework", Qualitative Research in Financial Markets, Vol. 14 No. 2, pp. 213-228.



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