Literature review of Behavioral Finance: Then and Now

Abstract

Purpose- The paper aims to organize and take a supply from past to present research on Behavioral finance by reviewing available literature to provide quick and easy access for future researchers. The present study also emphasizes the classification ofliteratureandprovides acomprehensiveviewofBehavioralfinance,andanalyzes the studies' findings and results for review.
Design/methodology/approach- A range of sources were searched to review the existing literature on Behavioral finance, and out of thousands of papers, 44 papers are based on the impact of behavioral biases on individual investors decisions and impact of demographical factors on behavioral biases(research papers and Literature Review)form the sample for the present study. To know the status of research on the topic, these 44 papers are classified based onvarious variables,like behavioral biases, investors' investment decisions and demographical factors, etc.
Findings- This paper classifies the past literature on Behavioral finance and finds that the research work on behavioral financeis still in demand in developed countries, and behavioral finance coverage across emerging economies has increased in recent years. The study revealed many other findings also.
Originality/value- The present paper provides the collection, classification, and comprehensive literature on behavioral finance, which will help academicians, professionals, and future researchers study the current research work and consider future research in the same area.