Behavioural determinants of financial decision quality: Self-Control bias and regret aversion among university faculty

This study challenges the prevailing deficit-oriented perspective in behavioural finance, which casts cognitive biases as inherently detrimental, by exploring whether self-control bias and regret aversion bias can foster superior investment decisions among educated professionals in emerging markets. Grounded in bounded rationality and dual-process frameworks, the research examines these dynamics within a cohort of Indian university faculty (characterised by financial literacy and occupational stability). It assesses gender as a moderator shaped by collectivist cultural norms. Analysis of survey responses from 389 participants across 25 institutions, employing structural equation modelling, reveals that both biases are positively associated with investment quality, defying traditional assumptions. Notably, gender moderation of these associations was insignificant, suggesting convergence in bias manifestation among peers with comparable educational attainment. These results advance behavioural finance theory beyond Western contexts, recasting biases as context-sensitive heuristics, and carry practical weight for regulators and advisors crafting targeted, culture-attuned interventions such as pension nudges and regret-averse planning tools.