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Journal of Statistics and Management Systems cover

Journal of Statistics and Management Systems

(Since 1998)
Hybrid ·Peer-reviewed·ISSN (Online): 2169-0014·ISSN (Print): 0972-0510

Indexed in ABDC Australia

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Monthly Journal: Publishes peer-reviewed aticles on theoretical and applied statistics and management systems, expoloring industrial statistics, actuarial and decision sciences.

Issues up to 2022 co-published with and available at:Taylor & Francis Online
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Journal of Statistics and Management Systems
Open Access Research Article

An analysis of behavioural biases in investment decision making

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pp. 1455–1465Vol. 26Issue 6September 2023DOI: 10.47974/JSMS-1161XML
Received:
03 May 2023
Published Online:
17 Oct 2023
Article type:
Research Article
Language:
EN
Article no.:
JSMS-1161
Pages:
1455–1465

Abstract

The psychological biases cause participants in the financial market to feel uneasy and unfavourable, which causes them to act impulsively. Against this backdrop, this study attempted to investigate the connection between behavioural bias and financial decision-making for stock market investors. This study is sample-based and the sample of the study has been stock market investors from Rajasthan. Our results confirm that behavioural bias plays a significant role in explaining investment decisions. Specifically, we find a positive relationship between overconfidence bias, optimism bias, disposition bias and home bias on investment decision-making and a significant negative relationship between herding bias on investment decision making. These results imply that investor psychology plays an important role in investment decision-making. 

Keywords

InvestmentsBehavioural biasOverconfidence biasOptimism biasDisposition biasHome biasHerding bias

Subject Classifications

D81G1

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