Assessing the Influence of Behavioral Biases on Financial and Investment Choices Among investors in Golaghat District of Assam

Abstract

The study investigates the impact of behavioral biases on investors' behavior and financial decision-making through regression analysis. Results indicate that behavioral biases significantly influence investors' behavior in securities trading, with a regression coefficient of 0.1847 and a standard error of 0.236. The analysis also reveals a substantial effect of behavioral biases on the financial culture of investors, with a regression coefficient of 0.557 and a standard error of 0.065. ANOVA contrast analysis further confirms the significance of these findings, with an F-value of 100.344 for investors' behavior and an F-value of 563.495 for financial culture. The R-squared values of 0.439 and 0.819 respectively suggest a high level of variance explained by behavioral biases in both aspects. However, while investors' behavior in securities trading shows a significant impact of behavioral biases, the regression coefficient for raising the financial culture of investors (0.342) indicates a lower level of significance, with a probability value of 0.082. These findings underscore the critical role of behavioral biases in shaping investors' behavior and financial decision-making processes. Understanding and addressing these biases are crucial for improving investment outcomes and promoting financial literacy among investors. The study emphasizes the importance of behavioral finance in guiding effective investment strategies and enhancing overall financial well-being.