MAPPING BEHAVIORAL BIASES IN INVESTMENT DECISIONS: A BIBLIOMETRIC ANALYSIS (2014 2024) (KEY IJP************535)

• Dr. Irudhayamary Premkumar,Ms. Muskan M. Parmar

Abstract

Behavioral finance has emerged as a pivotal area of research in understanding the irrational financial behaviors of investors. Traditional finance theories assume that individuals make rational decisions aimed at maximizing their utility. However, behavioral finance challenges this notion by exploring how psychological factors and biases influence decision-making, often leading investors to act irrationally. These biases, which can be categorized into cognitive and emotional, affect how individuals perceive information, assess risks, and ultimately make financial choices. Cognitive biases stem from flawed reasoning and information processing, while emotional biases are driven by feelings and instinct, making them more difficult to overcome.Over the last decade, research on behavioral biases and their effects on investment decisions has seen significant growth. This surge in interest reflects the increasing recognition that understanding investor psychology is crucial for explaining financial market anomalies. Behavioral biases such as overconfidence, herding, the disposition effect, and anchoring are frequently cited as major influences that deviate investors from rational decision-making.The current study aims to conduct a comprehensive bibliometric analysis of publications on behavioral biases in investment decisions between 2014 and 2024. This analysis provides a quantitative and qualitative assessment of research trends, geographical distribution, author collaborations, and the gender dynamics in sole authorship. It offers insights into the evolution of the field over the past decade and highlights key contributors, both in terms of countries and publishers, as well as influential researchers.One of the primary objectives of this analysis is to map the growth of academic publications in this domain and to identify which countries have contributed most significantly to the body of research. Early findings suggest a strong concentration of research output from the United States, which leads in terms of both the number of publications and citations. Other countries such as the UK and India are also emerging as important contributors, though the research output from these regions is much lower compared to the USA. The analysis also seeks to understand the performance of major academic publishers in this field, with Elsevier standing out as the leading publisher.In addition to country-wise and publisher-wise distribution, the analysis delves into authorship patterns, identifying trends in single-authored versus multi-authored publications. This is complemented by a gender analysis, which shows significant disparities in publication contributions by male and female authors, particularly in countries like the USA, UK, and India. However, interestingly, Russia shows a near-equal distribution of publications between male and female authors.Overall, this bibliometric study serves to provide a holistic view of the research landscape on behavioral biases in investment decisions. By analyzing trends across time, regions, and contributors, it sheds light on the growing academic interest in behavioral finance and offers a roadmap for future research in the field. The study also underscores the importance of addressing geographical and gender disparities in academic contributions to foster a more inclusive and diverse body of knowledge in this rapidly evolving domain. NEED FOR THE STUDYBehavioral biases significantly influence investment decisions, impacting investor behavior and market dynamics. Understanding these biases is crucial for developing strategies to mitigate their effects, thereby enhancing investment performance. This study aims to provide a comprehensive bibliometric analysis of research on behavioral biases in investment decision-making from 2014 to 2024. By examining publication trends, geographical distributions, and authorship patterns, this research seeks to highlight gaps in the existing literature and promote further exploration of this critical field. The insights gained will not only contribute to academic discourse but also inform practitioners and policymakers about the importance of addressing behavioral factors in investment strategies.