Title: Behavioural finance: understanding impact of human behaviour towards financial decision making

Authors: Rajashree K. Gethe; Ankit Bajaj; Mahesh S. Hulage

Addresses: Pune Institute of Business Management, Savitribai Phule Pune University, Pune, India ' Pune Institute of Business Management, Savitribai Phule Pune University, Pune, India ' Mahindra and Mahindra Ltd., Pune, India

Abstract: The purpose of this research paper is to develop a conceptual framework and understanding of the field of behavioural finance. This paper puts forth theoretical aspects and practical implications of how human's behaviour affects a person's financial decision making. The research paper proposes a conceptual interrelation between finance, psychology, and sociology where the paper focuses on developing a certain factor which will help to deeply understand human's behaviour while making a financial decision (behavioural finance). Behavioural finance is one of the emerging areas of research in the field of finance. It focuses on the impact of human psychology and behaviour on financial decision making. So, it will be really interesting to find out the behavioural and emotional state factors that promote a human being to make a financial decision. This research paper is to find out the factors that promotes a human being to make the financial decisions which sometimes are not as per the financial theories.

Keywords: behavioural finance; behavioural biases; individual's financial decision making; psychology of investors.

DOI: 10.1504/IJEA.2022.124149

International Journal of Economics and Accounting, 2022 Vol.11 No.2, pp.182 - 198

Accepted: 11 Aug 2021
Published online: 14 Jul 2022 *

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