Abstract:

This study aims to consolidate research on key behavioral biases affecting individuals’ investment decisions in both financial markets and corporate finance. Through a thorough literature review, the study identifies and categorizes these biases into two primary groups: heuristics and frame-dependent biases. Additionally, it explores other prevalent behavioral biases such as confirmation bias, hindsight bias, endowment bias, and herding. The research also delves into biases specific to corporate finance investment decisions. By highlighting less-explored areas in the existing literature, this study identifies critical gaps and suggests directions for future research. The findings have practical implications, offering valuable insights to help investors and managers mitigate the impact of behavioral biases on investment decisions.

Please choose your submission type: Full Paper

Primary Track: Financial Management

Keywords: Behavioral Finance ;Financial Decision Making

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Ms. Aishwarya Das