International Journal For Multidisciplinary Research

E-ISSN: 2582-2160   •   Impact Factor: 9.24

A Widely Indexed Open Access Peer Reviewed Multidisciplinary Bi-monthly Scholarly International Journal

Call for Paper Volume 8, Issue 2 (March-April 2026) Submit your research before last 3 days of April to publish your research paper in the issue of March-April.
Submit Research Paper Join as a Reviewer

Plagiarism is checked by the leading plagiarism checker TurnItIn

Call for Paper

Volume 8 Issue 2
March-April 2026

Submit your research paper

Indexing Partners
Academia Advanced Sciences Index Bielefeld Academic Search Engine CiteSeer DRJI Google Scholar Independent Search Engine & Directory Network ISI (International Scientific Indexing) Issuu Mendeley Research Networks
RefSeek ResearcherId - Thomson Reuters ResearchGate Scirus Scribd Semantic Scholar UTeM - Universiti Teknikal Malaysia Melaka Wiki for Call for Papers WorldCat Zenodo

Dynamics of Behavioral Finance on Stock Investment Decisions – a Study

Author(s) Prof. Rajender Katla, Mr. Chindam Ramesh
Country India
Abstract This study investigates the dynamics of behavioral finance and its influence on stock investment decisions, highlighting how psychological biases shape investor behavior in volatile markets. Drawing upon established theories and empirical evidence, the research identifies key biases—overconfidence, loss aversion, herd behavior, anchoring, optimism, and representativeness—as critical determinants of investment choices. A quantitative methodology was employed, using a structured questionnaire administered to 100 active investors, with data analyzed through descriptive and inferential statistics including t tests, ANOVA, correlation, and regression. Findings reveal that loss aversion and optimism bias are the most dominant influences, while herd behavior is comparatively weaker. Demographic factors such as age and education significantly moderate bias expression, with younger investors exhibiting stronger herd tendencies and higher education correlating with reduced anchoring. Investment behavior patterns show a preference for equities and mutual funds, moderate diversification, and increasing reliance on online platforms and self directed research. Regression analysis indicates that overconfidence positively predicts perceived performance, whereas loss aversion negatively impacts it. Overall, the study concludes that while investors are optimistic and increasingly independent, psychological biases continue to drive decision making, underscoring the need for enhanced financial literacy and investor education programs to foster rational, long term investment strategies.
Keywords Behavioral Finance, Stock Investment Decisions, Investor Biases, Loss Aversion, Overconfidence
Field Business Administration
Published In Volume 7, Issue 6, November-December 2025
Published On 2025-12-24
DOI https://doi.org/10.36948/ijfmr.2025.v07i06.64278
View / Download PDF File

Share this



E-ISSN 2582-2160
CrossRef

CrossRef DOI is assigned to each research paper published in our journal.

IJFMR DOI prefix is
10.36948/ijfmr

Downloads
Research Paper Format Copyright Permission Form and Undertaking Form Cover Page Vol 8 Isu 2Cover Page Vol 8 Isu 1Cover Page Vol 7 Isu 6

All research papers published on this website are licensed under Creative Commons Attribution-ShareAlike 4.0 International License, and all rights belong to their respective authors/researchers.

CC-BY-SA Open Access

About IJFMR
Fees & Payment
Current Issue
Publication Archive 		Submit Research Paper
Track Submission Status
Publication Guidelines
Publication Ethics
Peer Review & Plagiarism 		Join as a Reviewer
Editors & Reviewers
Reviewer Referral Program
Get Reviewer Membership Certi. 		Website/Journal Policies
Usage Policy
Content Policies
Privacy Policy
Contact Us +91-9687-828-838 editor@ijfmr.com
Powered by Sky Research Publication and Journals