Investor behavior and financial decisions

Abstract EN

In this paper we study the behavior of investors, behavioral factors and biases affecting financial decision-making by addressing a range of articles and workes conducted in a number of financial markets over the past decade.

the study concluded by identifying four behavioral factors that affect decision making in financial markets, ie, prospect theory, heuristic theory, the herd and the market factors.

we found that the herd factor and overconfidence bias are the most influential on financial decisions in different markets.