Bias And Behavior: Understanding Equity Investment Decisions In Kolhan Region Through Behavioral Finance

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Published: Aug 22, 2023
DOI: https://doi.org/10.53555/jrtdd.v6i1.3427
Keywords:
Herding Bias Investment Behavior Confirmation Bias Optimism Bias Financial Awareness.

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Nishant Kumar
Dr. Sonia Riyat

Abstract

This study investigates the influence of cognitive biases—anchoring, herd behavior, loss aversion, and recency bias—on investment decisions among equity investors in the Kolhan region, Jharkhand. Using a descriptive cross-sectional design and stratified random sampling, data from 300 participants revealed significant behavioral patterns. Anchoring bias was more prevalent among less-educated investors, while herd behavior was notably higher among males. Loss aversion decreased with rising income levels, and recency bias strongly correlated with recent market fluctuations. These findings align with established behavioral finance literature but highlight unique socio-economic and cultural factors shaping investor behavior in semi-urban and rural contexts.
The study underscores the critical role of financial literacy in mitigating biases, emphasizing the need for targeted interventions, such as gender-sensitive training and technology-driven advisory tools. While contributing valuable region-specific insights, this research opens avenues for future studies, including longitudinal analyses and comparative regional investigations. By bridging theory and practice, the paper offers actionable strategies for fostering rational investment behavior, promoting financial inclusion, and enhancing market stability. This work adds depth to the discourse on behavioral finance and provides a foundation for tailored policy frameworks in emerging markets.

Article Details

How to Cite
Nishant Kumar, & Dr. Sonia Riyat. (2023). Bias And Behavior: Understanding Equity Investment Decisions In Kolhan Region Through Behavioral Finance. Journal for ReAttach Therapy and Developmental Diversities, 6(1), 2340–2348. https://doi.org/10.53555/jrtdd.v6i1.3427
Issue
Vol. 6 No. 1 (2023)
Section
Articles
Author Biographies

Nishant Kumar

Research Scholar, Arka Jain University, Jamshedpur, Jharkhand

Dr. Sonia Riyat

Associate Professor, Arka Jain University, Jamshedpur, Jharkhand

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