Gender, behavioral finance and the investment decision

Authors

Bimal Jaiswal, University of Lucknow, Lucknow, Uttar Pradesh, India
Naela Kamil, Academy of Higher Learning, Lucknow, Uttar Pradesh, India

Abstract

As per classical economic theory, humans are completely rational decision makers who carefully evaluate all facts and evidences before taking decisions that aim at maximizing outcomes. However it has been found that in real life humans are not totally rational, rather they are influenced by various behavioural factors while making decisions. Behavioural Finance has thus emerged as an emerging field that studies the influence of psychology on financial decisions. However, it still remains to be investigated whether the impact of behavioural factors is homogenous on all individuals or whether the demographic and psychographic characteristics of the individuals in any way influence the behavioural investment decision. This research takes up one demographic variable, gender, and attempts to investigate the extent to which gender differences influence behavioural investment decisions.

Keywords

Behavioural finance, Herd vehaviour, Mental accounting, Over-reaction, Prospect theory

DOI

https://doi.org/10.54784/1990-6587.1201

Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

Recommended Citation

Jaiswal, B., & Kamil, N. (2012). Gender, behavioral finance and the investment decision. Business Review, 7(2), 8-22. Retrieved from https://doi.org/10.54784/1990-6587.1201