An Empirical Investigation on the Influence of Behavioural Factors on Investment Decision Making

Abstract

The present research attempts to examine the influence of different behavioural factors such as overconfidence, self-attribution and under and over-reaction on investors’ investment decision-making, keeping the age and gender of the investors as control variables. To test and validate the proposed research hypotheses and model, 145 valid responses were collected using the snowball sampling technique from the investors of the North Eastern Region of India using a structured questionnaire. Data were analysed using a two-staged PLS–SEM–ANN approach. The result of the study indicates a significant and positive influence of different behavioural factors on investors’ decision-making. The current research provides numerous implications for academics as well as for practitioners. The present research findings will help to understand the key behavioural factors that impact retail investors’ decision-making in the North Eastern Region of India. The study also provides practical implications for retail investors, financial advisors and policymakers.