Understanding Human Behavior in Finance: A Qualitative Study on Cognitive Biases and Decision-making in Investment Practices

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Qualitative analysis reveals cognitive biases in investment decisions, suggesting improvements in financial outcomes.

Investment decisions are significantly influenced by cognitive biases like overconfidence and confirmation bias, impacting choices.
Thematic analysis uncovers critical insights from iterative coding of financial behavior data across various contexts.
Emotional factors such as fear of missing out drive speculative investment behaviors, contributing to inefficiencies in markets and risk perceptions. The study highlights the need for behavioral interventions and technological advancements to address biases and improve decision outcomes.

Noch et al. (2024) studied this question.

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