Behaviour Biases and Investment Decisions: How Gender Affects the Decision-Making Process

Abstract

Purpose – The objective of the research is to examine the gender’s moderation effect on the influence of behavioural biases on the investing decisions of retail investors.

Design/methodology/approach – The study used a deductive approach as it was based on behavioural finance. A total of 250 retail investors were surveyed using a standardized questionnaire. Regression & moderation analysis were used to analyse the hypotheses. The moderation analysis was performed using the PROCESS MACRO technique.

Findings – It was observed that all of the behavioural biases that were considered for the study have a beneficial influence on investment decisions; however, gender did not moderate any of the relationships that were found to exist between behavioural biases & investment decisions. In addition to this, a positive correlation may be seen between each of the behavioural biases and the investment choice.

Originality/value – This is the first study to examine gender as a moderator between behavioural biases and investing decisions. This article improved understanding of behavioural factors and their impact on investing decision-making process. The study's findings will increase investors' understanding of the financial decision-making approach.