Prominent behavioural biases affecting investment decisions: a systematic literature review with TCCM and bibliometric analysis

Shubhangi Gautam and Pardeep Kumar

International Journal of Indian Culture and Business Management, 2025, vol. 35, issue 1, 96-120

Abstract: Behavioural finance since its inception is centred on bridging the gap between psychology and finance. The study aims to discover the most common behavioural biases in investment decision-making and to find new emerging dimensions for further research. This research employed the PRISMA guidelines to finalise the research studies for final review. The review paper adopted the TCCM 'a theory development, context, characteristics, and methodology' and bibliometric approach to analyse the 'Scopus-indexed' research publications. The study establishes that behavioural biases are inescapable; and they are bound to influence individuals, corporates, financial analysts, or other investors' investment choices, whether positively or negatively. The research concludes that prospect theory, heuristics, and herding are three categories of biases that mostly influence and impact the opinions of prospective investors. Moreover, the relationships of behavioural finance with neurofinance and emotional intelligence are recognised as the most promising emerging areas for future research.

Keywords: behavioural biases; herding bias; investment decision; mental accounting; overconfidence bias. (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:ids:ijicbm:v:35:y:2025:i:1:p:96-120

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