Mapping investor sentiment and behavioral biases in financial decisions (2000–2024): a bibliometric approach

Rumysa () and Ajaz Ul Islam ()
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Rumysa: National Institute of Technology Srinagar
Ajaz Ul Islam: National Institute of Technology Srinagar

SN Business & Economics, 2025, vol. 5, issue 11, 1-31

Abstract: Abstract Behavioral biases, risk perception, and investor sentiments have significantly influenced the financial markets; however, the exploration of chronological evolution in this area is still unexplored. Earlier studies have investigated the impact of specific behavioral biases on investors’ behavior; little focus has been placed on the amalgamation of these themes and how they work in interconnectivity. This study addresses the gap in the existing literature by conducting a thorough bibliometric analysis of literature published in the domain, as most of the studies have focused on the classical financial framework. The Scopus database is used as a source of data and advanced bibliometric techniques, including keyword mapping, clustering analysis, thematic mapping, Bradford’s Law, and Lotka’s Law to identify the trends, patterns, and prominent sources, authors, and thematic clusters. The results suggest a significant chronological growth in the literature investigating the relationship, with powerful thematic concentration on cognitive and emotional biases, the risk perception as an influencer of decision making, and the role of sentiments in market dynamics. The United States is a major contributor based on the number of publications and total citations; however, research hubs are emerging worldwide. The inferences of the study not only advance theoretical understanding but also significantly contribute towards overall market development by providing insights to investment professionals, policymakers, and regulators on the various drivers of financial behavior. The study’s findings highlight the need to inculcate behavioral aspects in financial behavior, market policy, and investment strategies, ensuring that human cognitive limitations and emotional responses are accounted for while making financial decisions.

Keywords: Behavioural biases; Investor sentiment; Risk perception; Decision-making; Bibliometric analysis; Clustering; Word map; Thematic analysis (search for similar items in EconPapers)
JEL-codes: G11 G41 (search for similar items in EconPapers)
Date: 2025
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DOI: 10.1007/s43546-025-00941-5

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