Cognitive and Emotional Biases in Investment Decision Making: A PRISMA Systematic Review and Bibliometric Analysis

DOI

10.2991/978-94-6239-772-9_6How to use a DOI?

Keywords

Behavioural Finance; Investment decision-making; Investor Sentiment; Cognitive Biases; Emotional Biases

Abstract

The study explores the establishment of behavioural finance, focusing on how rational and affective factors leverage every individual's decision-making. It discovers the key contributors, dominant themes, and contemporary research gaps in this growing field. A bibliometric and ‘systematic literature review’ SLR were conducted on 158 Scopus- indexed data base published between 2007- 2025 using the Prisma framework. The study employed publication performance and thematic mapping techniques, including co-citation, co-occurrence, and bibliographic coupling, to examine publication trends, influential sources, and thematic evolution. Results indicated a significant transformation from a rational financial model to psychologically based models. Cognitive and emotional biases such as overconfidence, loss aversion, herding, and anchoring are found to significantly influence investment decisions. Theme-based cluster highlights psychological significance on investment, gender-based financial behaviour, intelligent retrieval and bias concession, and emotional-cognitive exaggeration in the financial system. This inspection harmonises the intellectual development of financial behavior and helps by linking the unexplored area of emotional and psychological factors impacting on retail investors’ behaviour. The findings provide theoretical knowledge that is essential for practitioners and policymakers to recognise and overcome the behavioural factors influencing investment decision-making.

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  - S. N. Shalini
AU  - Sangeetha Rangasamy
PY  - 2026
DA  - 2026/09/07
TI  - Cognitive and Emotional Biases in Investment Decision Making: A PRISMA Systematic Review and Bibliometric Analysis
BT  - Proceedings of the 2nd International Conference on Innovations and Challenges in Financial Technology (ICICFT 2025)
PB  - Atlantis Press
SP  - 54
EP  - 70
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6239-772-9_6
DO  - 10.2991/978-94-6239-772-9_6
ID  - Shalini2026
ER  -