The Influence of Overconfidence and Loss aversion factors in Investment Decision Making: Evidence on Stock Investors in India

Abstract

The aim of this research is to investigate the influence of several prominent behavioral finance variables discussed in the financial literature, such as loss aversion and overconfidence, on the decision-making process when investing in stocks. Furthermore, the study aims to determine the relative significance of these variables. The value of this study originates from the fact that local studies focused on the subject of behavioral finance are rare and so, the researchers believe that such study will enrich awareness in this domain.