Proceedings of the 2025 3rd International Academic Conference on Management Innovation and Economic Development (MIED 2025)

<Previous Article In Volume
Next Article In Volume>

A Study of Investor Decision-Making Behavior Based on Behavioral Finance

Authors
Zhongzhe Sun1, *
1School of Mathematics and Physics, Xi’an Jiaotong-Liverpool University, Jiangsu, 215000, China
*Corresponding author. Email: Zhongzhe.Sun23@student.xjtlu.edu.cn
Corresponding Author
Zhongzhe Sun
Available Online 17 September 2025.
DOI
10.2991/978-94-6463-835-6_26How to use a DOI?
Keywords
Behavioral Finance; Cognitive Biases; Emotional Biases; Investment Decision
Abstract

This article endeavors to provide an in-depth exploration of the intricate factors influencing investor decision-making behavior, with a particular emphasis on cognitive biases, emotional heuristics, and social influences through the lens of behavioral finance. Synthesizing research from various scholars, this study elaborates on how investment decisions under these factors impact individual portfolio performance and the efficiency of financial markets. Specifically, the analysis examines how behavioral biases can lead to suboptimal decisions by individual investors, such as excessive trading and momentum investing. Furthermore, it investigates the macroeconomic implications of these biases, including their effects on market volatility and the formation of market bubbles. The findings of this research aim to enhance investors’ understanding of the limitations inherent in their decision-making processes, thereby facilitating more informed investment strategies. In addition, this paper provides a theoretical framework for financial regulators to inform the development of policies that maintain market stability and protect investor interests.

Copyright
© 2025 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.

Download article (PDF)

<Previous Article In Volume
Next Article In Volume>
Volume Title
Proceedings of the 2025 3rd International Academic Conference on Management Innovation and Economic Development (MIED 2025)
Series
Advances in Economics, Business and Management Research
Publication Date
17 September 2025
ISBN
978-94-6463-835-6
ISSN
2352-5428
DOI
10.2991/978-94-6463-835-6_26How to use a DOI?
Copyright
© 2025 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.

Cite this article

risenwbib
TY  - CONF
AU  - Zhongzhe Sun
PY  - 2025
DA  - 2025/09/17
TI  - A Study of Investor Decision-Making Behavior Based on Behavioral Finance
BT  - Proceedings of the 2025 3rd International Academic Conference on Management Innovation and Economic Development (MIED 2025)
PB  - Atlantis Press
SP  - 241
EP  - 248
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-835-6_26
DO  - 10.2991/978-94-6463-835-6_26
ID  - Sun2025
ER  -