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This paper describes how financial professionals' behavioral biases influence their financial forecast and decision-making process. Most of the earlier studies are focused on well-developed financial markets, and little is researched about financial professionals, such as institutional investors, portfolio managers, investment advisors, financial analysts, etc., in emerging markets.

An expert-validated questionnaire measure four prominent behavioral biases and Indian financial professionals' rational decision-making process. The final sample consists of 274 valid responses using the purposive sampling technique. IBM SPSS and AMOS structural equation modeling (SEM) software are used to build measurement and structural models, multivariate analysis including regression, factor analysis, etc.

The results provide empirical insights into the relationship between behavioral biases and the decision-making process. The results suggest that the structural path model closely fits the sample data. The presence of behavioral biases indicates that financial professionals' forecasting and decision-making is not always rational but bounded rational or irrational due to these factors. Furthermore, these biases (except overconfidence bias) have a markedly significant and positive relationship with irrational decision-making.

It is critical to eradicate these psychological errors, but awareness and attentiveness toward behavioral biases may help financial professionals to make informed decisions. Investors can improve their portfolio decisions and investments by recognizing their judgment errors and focusing on specific investment strategies to mitigate the impact of these biases. It is necessary to incorporate behavioral insights while developing training techniques for financial professionals. Rules of thumb, visual tools, financial coaching and implementing social-cultural elements in training programs enable financial professionals to develop simple, engaging, appealing and customized approaches for their clients.

This novel study is the first of this kind of research that examines the relationship between financial professionals' behavioral biases and rational decision-making process. This study significantly and remarkably provides insights into irrationality in financial professionals' decision-making.

This study explores the decision-making powers of Australian female consumers in the financial product market. More precisely, it examines how the integrative effects of rationality, emotions and personality traits influence the decision-making powers of Australian female consumers when making financial product purchase decisions.

The study employs a quantitative research approach, utilising a survey strategy. The proposed conceptual model was tested using structural equation modelling (AMOS) on a valid 357 responses from Australian female consumers.

The findings revealed that rationality, self-efficacy and impulsivity have a positive impact on the decision-making powers of Australian female consumers. Besides this, self-efficacy and anxiety had significant moderating effects on the decision-making power of Australian female consumers when buying financial products, whereas anger and impulsivity were found to have no moderating effects.

The study offers understanding on the role of emotions and personality traits in financial decision-making, which can help financial institutions design sound products and services that can also ensure consumers' overall well-being.

Informed by the theoretical notions of the appraisal-tendency framework (ATF) and emotion-imbued choice model (EIC), the study makes a unique contribution by investigating the impact of rationality, emotions and personality traits on the decision-making powers of female consumers in the Australian financial product market.

This study explored the relationship between employees' cognitive capabilities and firm performance by exploring the moderating role of decision-making style and the mediating effect of knowledge creation. Understanding the role of cognitive capabilities in value creation is crucial for human resource management to achieve the anticipated organizational performance.

Structural equation modeling, cognitive skills theory, cognitive skills acquisition theory and a knowledge creation framework were applied.

The first finding suggests that only A-shaped skills predict higher knowledge creation, while T-shaped skills do not. Second, knowledge creation predicts higher financial performance and a lower level of financial uncertainty. Third, T-shaped skills have no indirect effect on financial performance or financial uncertainty. Fourth, A-shaped skills exerted significant indirect effects on financial performance and uncertainty. Fifth, the rational decision-making style did not moderate the link between knowledge creation and financial performance, as opposed to the intuitive decision-making style.

A review of existing research indicates a lack of studies examining the effect of cognitive skills on organizational outcomes and contingencies under which cognitive skills lead to superior outcomes. This study advances research on T-shaped and A-shaped skills and knowledge creation by empirically exploring their interrelationships with financial performance. Managerial implications and suggestions for future research are also highlighted.

The purpose of this paper is to contribute to a better understanding of the financial decision-making process of farmers and to highlight the potential role that improved farm financial management (FFM) could play in developing sustainable farm enterprises.

This paper adopts a qualitative approach with 27 semi-structured interviews exploring farmers’ financial decision-making processes. Subsequently, the interview findings were presented to a focus group. Sensemaking theory is adopted as a theoretical lens to develop the empirical findings.

The evidence highlights that FFM has a dual role to play in farmer decision-making. Some FFM activities may act as a cue, which triggers a sensebreaking activity, causing the farmer to enter a process of sensemaking whilst some/other FFM activities are drawn upon to provide a sensegiving role in the sensemaking process. The role of FFM in farmer decision-making is strongly influenced by the decision type (strategic or operational) being undertaken and the farm type (dairy, tillage or beef) in operation.

The literature suggests that the majority of farmers spend little time on financial management. However, there are farmers who have quite a high level of engagement in FFM activities, when undertaking strategic farm expansion decisions. Those FFM activities help them to navigate through operational decision-making and to make sense of their strategic decision-making.

Financial planning is important in promoting the social well‐being of a nation. Without proper financial planning, individuals may be ill‐prepared in coping with the escalating cost of living, medical costs as well as enjoying their desired quality of life. However, financial decision making is not always made in a rational manner. This study aims to investigate the influence of personality traits, genders and course majors on decision making dimensions of risk aversion, cognitive biases and socially responsible investing (SRI) criteria among Generation Y undergraduates.

The study utilizes a sample of undergraduates from a business school in Klang Valley, Malaysia. The study adapts the Big 5 personality scales from McCrae and Costa. The scales for the financial decision making dimensions, namely risk aversion, cognitive biases and SRI constructs, were developed for this study based on concepts developed from the extant literature. The validity and reliability of the scales were tested using exploratory factor analysis and Cronbach's alpha respectively. Hypotheses were tested using multiple linear regressions, t‐tests and ANOVA methods.

Conscientiousness, openness and agreeableness were found to have a significant influence on risk aversion, cognitive biases and SRI respectively. Gender and course majors taken were not significant in financial decision making.

Future research should extend this to different cohorts of individuals including working adults and retirees. The mediating influences of personality and moderating influences of demographic factors such as education level, age and religiousity should also be explored to better target potential investors and fulfill their financial goals.

Awareness of the influence of specific personality traits in financial decision making would help financial planners tailor products more effectively to cater for the understanding and lifestyle of the younger generation. There may also be a need in the future for business schools to introduce courses on behavioural finance in their curriculum.

Studies on financial planning have more often focused on rational aspects of financial decision making rather than on personality dimensions. This study bridges the gap by investigating the influence of the Big 5 personality traits in financial decision making. The study also posits that the influence of personality traits is more significant than demographic factors in financial decision making.

The purpose of this paper is to propose an integrative framework bringing together results from neuroplasticity and decision-making from a neuroscience perspective with those from market plasticity, i.e. with which practices market actors shape markets.

Provided that developments in neuroscience indicate that training the brain for orientation toward efficient decision-making processes under uncertainty is possible, an in-depth analysis can be conducted by using the integrative framework, which was set up by the authors for advancing research efforts in neuroeconomics and neurofinance on these lines.

Markets have a plastic character; they can change shape and form and remain in that way thereafter. The marketers have always been causing this change to succeed in their marketing strategies and efforts. Plasticity, hitherto considered by marketing, market sociology and evolutionary economics, has a potential in financial decision-making processes, especially regarding its role in training the brain for stable financial decisions.

The theoretical approach can be incorporated for delivering an alternative representation of the knowledge processes associated with financial decisions.

The practical approach can be used for improving the practical aspects of financial decision-making processes.

The contribution is the first of its kind which integrates neuroscience approaches of plasticity and decision-making with the concept of market plasticity from the literature on economics and management, showing their similarities and opening a new front of discussion on how these two approaches can learn from each other to increase the explanatory power of financial decision-making processes and to gain new insights for financial decision makers on how to make more efficient financial decisions in the times of uncertainty.

Financial capability is considered to be an important concept that has drawn the attention of many world nations. While the literature suggests various studies on financial capability and financial wellbeing, focus on their combined significance has been limited. The purpose of this paper is to examine how financial capability affects the financial wellbeing of women in community-based organizations and how decision-making ability mediated this relationship.

In total, 1,000 women who are associated with the community-based organization – Kudumbashree in the state of Kerala, India participated in the survey-based study.

The structural equation modelling results show that there exists a significant relationship between financial capability and the financial wellbeing of women in CBOs. Further, decision-making ability was identified as a significant mediator in this relationship thus establishing a partial mediation effect.

The financial social workers can focus their activities on promoting financial capability and decision making aspects of women from middle/low income families to facilitate their financial wellbeing. The scope for financial socialisation and proper orientation is more for the women associated with the community based organisations. This opportunity can be made use by the government authorities and other practitioners to change their financial outlook and contribute towards the empowerment of these women from the grass root level.

The studies related to financial literacy and financial inclusion are available in the Indian context, but the conceptualization of financial capability is still an under-researched area in India. Hence, this study is an attempt to explain the capability-wellbeing relationship from a financial point of view in the Indian context, and further establishes its connection with the individual's decision-making ability. To strengthen the research base, the study was conducted among the women in the community-based organization who belong to middle and low-income families.

This article aims to systematically review the literature published in recognized journals focused on cognitive heuristic-driven biases and their effect on investment management activities and market efficiency. It also includes some of the research work on the origins and foundations of behavioral finance, and how this has grown substantially to become an established and particular subject of study in its own right. The study also aims to provide future direction to the researchers working in this field.

For doing research synthesis, a systematic literature review (SLR) approach was applied considering research studies published within the time period, i.e. 1970–2021. This study attempted to accomplish a critical review of 176 studies out of 256 studies identified, which were published in reputable journals to synthesize the existing literature in the behavioral finance domain-related explicitly to cognitive heuristic-driven biases and their effect on investment management activities and market efficiency as well as on the origins and foundations of behavioral finance.

This review reveals that investors often use cognitive heuristics to reduce the risk of losses in uncertain situations, but that leads to errors in judgment; as a result, investors make irrational decisions, which may cause the market to overreact or underreact – in both situations, the market becomes inefficient. Overall, the literature demonstrates that there is currently no consensus on the usefulness of cognitive heuristics in the context of investment management activities and market efficiency. Therefore, a lack of consensus about this topic suggests that further studies may bring relevant contributions to the literature. Based on the gaps analysis, three major categories of gaps, namely theoretical and methodological gaps, and contextual gaps, are found, where research is needed.

The skillful understanding and knowledge of the cognitive heuristic-driven biases will help the investors, financial institutions and policymakers to overcome the adverse effect of these behavioral biases in the stock market. This article provides a detailed explanation of cognitive heuristic-driven biases and their influence on investment management activities and market efficiency, which could be very useful for finance practitioners, such as an investor who plays at the stock exchange, a portfolio manager, a financial strategist/advisor in an investment firm, a financial planner, an investment banker, a trader/broker at the stock exchange or a financial analyst. But most importantly, the term also includes all those persons who manage corporate entities and are responsible for making their financial management strategies.

Currently, no recent study exists, which reviews and evaluates the empirical research on cognitive heuristic-driven biases displayed by investors. The current study is original in discussing the role of cognitive heuristic-driven biases in investment management activities and market efficiency as well as the history and foundations of behavioral finance by means of research synthesis. This paper is useful to researchers, academicians, policymakers and those working in the area of behavioral finance in understanding the role that cognitive heuristic plays in investment management activities and market efficiency.

This meta-analysis reviews and summarizes the results of 34 studies to investigate the relationship between overconfidence and financial decision-making.

A correlation meta-analysis was conducted with three moderators of the relationship between overconfidence and financial decision-making examined: the type of overconfidence construct, the type of overconfidence measuring method and the type of financial decision-making.

It was found that the effect of overconfidence on financial decision-making was significant, but the magnitude of this effect was low. Additionally, indirect measures of overconfidence showed to have stronger effect than direct measures, and the overconfidence was mostly related to investment, followed by trading and innovativeness.

This was the first attempt to meta-analytically integrate results concerning the relationship between overconfidence and financial decision-making. Although overconfidence is described as a keystone for understanding financial decision-making, it was shown that it has rather limited effect on individuals' financial decisions. The findings suggest that indirect measures increase the overall effect and may cause the overvaluation of overconfidence in literature. The results call for more rigorous and consistent conceptualization of overconfidence in behavioral research.

This study examines whether financial literacy is a relevant factor that determines authority in household financial decision-making, an area that is often viewed as boring, difficult and full of uncertainties. Cognitive ability and personality traits are also included as additional explanatory variables.

The logistic regression technique was applied using a sample of more than 2,300 microfinance institutions' clients in three provinces in Indonesia.

This study finds that financial literacy correlates positively with authority in household financial decision-making only among men. This does not mean that financial literacy is irrelevant for women's agency, since the skill might be important for authorities in other decision-making areas, including those outside households. Meanwhile, the relationship between cognitive ability and household financial decision-making authority is more universal.

This study does not collect information on the levels of financial literacy of other household members and does not capture respondents' perceptions of household financial decision-making.

The overall low level of financial literacy calls for the need for more targeted efforts to address this issue by policymakers. Education policy should also be designed to improve cognitive ability, as this ability is important for human agency and well-being.

Household decision-making has received significant attention in the literature. Authority in household decision-making is important because it represents a person's agency and has a profound impact on well-being. To the best of author's knowledge, studies on the importance of skills in household financial decision-making are very limited.