Comparative Analysis of Behavioral Biases Affecting Investors' Decisions: Evidence from a Meta-Analysis of Behavioral Finance Studies

Articles in Press

Document Type : Research Paper

Authors

1 Department of management, Faculty of Industrial and management, Shahrood University of Technology, Shahrood, Iran

2 Department of management, Faculty of Industrial and Management, Shahrood University of Technology, Shahrood, Iran

10.22108/amf.2025.144225.1956

Abstract

Since behavioral finance emerged, it has been able to respond to many of the contradictions of classical economics in realities. The most important results obtained from behavioral finance indicate the existence of behavioral biases in dealing with various economic events. Recognizing, examining the impact of these biases, and comparing them with each other is very important and effective for investors and decision makers to prevent the consequences of these biases, which is the basis of this research. In fact, the purpose of this research is to compare important and effective biases obtained from previous studies on investor decisions. In this research, which is based on meta-analysis and analysis of other research conducted in the field of behavioral biases, 12 main biases identified in the work of others were selected according to the sources and the plurality of research conducted for these biases. These biases were selected based on 61 articles studied, of which 24 were domestic articles and 37 were from international sources. The data extracted from the articles were submitted to the CMA-V2 software, which according to the output of the software, heterogeneity was observed among the results of all studies, and for this reason, the random variable method was used to analyze the results of the meta-analysis. Finally, the effect of these biases on decision-making was confirmed based on Z scores and the significance level calculated by the software, and the largest effect size was obtained for mental accounting bias.

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Journal of Asset Management and Financing

Articles in Press, Accepted Manuscript
Available Online from 23 April 2025

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