Qualitative analysis of the influence of biases and emotions on decision-making in stock markets: the case of individual investors

Alain Finet, Julie Laznicka and Hugo Palumbo
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Alain Finet: University of Mons
Julie Laznicka: University of Mons
Hugo Palumbo: Health Institute, Financial Management Department, University of Mons, Mons, Belgium

International Journal of Research in Business and Social Science (2147-4478), 2025, vol. 14, issue 3, 151-163

Abstract: Using a qualitative experimental design underpinned by elements of experimental finance, we analyze decision-making processes on stock markets, using a student population. The various results obtained, based on the tools used (open and closed questionnaires as well as trading journals), demonstrate the presence of certain biases (representativeness bias, rank bias, presence of heuristics and “all that glitters attracts†) and the influence of specific emotions (anger, fear, anxiety and sadness) in decision-making. The conclusions drawn from the analysis allow us to suggest that the development of biases and emotional pressure are strongly conditioned by the general context in which decision-making takes place, as well as by some socio-demographic characteristics of the participants (in particular, gender). Key Words:Emotions, Experimental Finance, Individual Investors, Qualitative Research, Behavioral Biases.

Date: 2025
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