Title: Determinants of investment behaviour of investors: a review and research agenda

Authors: Rakhi Arora; Sonal Purohit

Addresses: University School of Business-MBA, Chandigarh University, Punjab, 140413, India ' Symbiosis Institute of Business Management, Nagpur, Symbiosis International University, Nagpur, 440035, India

Abstract: Investment decision-making is often difficult for individual investors where millions of investors have similar access to information for saving and investment. The huge variation in the investment decision-making procedure makes the overall process complex and difficult to understand. The extant literature on determinants of investment decisions is scattered with contradictory claims from the authors. Therefore, the purpose of this study is to present a comprehensive view of the determinants of investment behaviour of investors through a systematic literature review. A total of 43 journal papers that were peer reviewed and published between 2010 and 2023 were subjected to this review. A conceptual framework that comprehensively presents the factors that affect investment related decisions is put forth after an exhaustive analysis of this review. This study explains about diverse factors, which are demographic factors, social factors, psychological factors, market factors, financial factors and risk and return criteria prescribing the decision of an investor for investment based on their rational behaviour. The potential factors for future studies are also discussed.

Keywords: behavioural finance; investment behaviour; investment decision-making; investment factors; financial market; risk and return.

DOI: 10.1504/IJBAF.2024.139359

International Journal of Behavioural Accounting and Finance, 2024 Vol.7 No.2, pp.153 - 176

Accepted: 27 Feb 2024
Published online: 01 Jul 2024 *

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