Impact of Regret Aversion and Disposition Effect On Investment Behavior: A Systematic Review

DOI

10.2991/978-94-6239-801-6_54How to use a DOI?

Keywords

Regret Aversion; Disposition Effect; Behavioral Finance; Investment Decision-Making; Irrational Behavior

Abstract

According to numerous empirical studies on financial markets, more investors exhibit “irrational behavior”in real investment activities, rather than behaving as rational investors. This universal phenomenon is direct evidence of regret aversion and disposition effect, two deep-seated psychological biases that synergistically influence investors. The article is based on domestic and international core journals, as well as a selection of doctoral dissertations with reference value since 2000, in accordance with systematic sorting. It makes a comment about regret aversion and disposition effect, which influence investors’ decisions. On this basis, this article provides a framework to sort out the framework about the difference between regret aversion and disposition effect a framework for investors’ individual level as well as group level combined with irrational factors, giving intervention and correction methods after fully understanding how regret aversion and disposition effect influence investors’ decisions. What’s more, it offers research direction, thinking, and inspiration about regret aversion and disposition effect in the future.

Copyright

© 2026 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Xinying Lyu
PY  - 2026
DA  - 2026/10/23
TI  - Impact of Regret Aversion and Disposition Effect On Investment Behavior: A Systematic Review
BT  - Proceedings of the 2026 2nd International Conference on Financial Innovation and Marketing Management (FIMM 2026)
PB  - Atlantis Press
SP  - 504
EP  - 511
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6239-801-6_54
DO  - 10.2991/978-94-6239-801-6_54
ID  - Lyu2026
ER  -