ISSN: 2222-6990
Open access
Purpose: The primary purpose of the study was to examine the roles of heuristic techniques and cognitive biases in Investment decision making and suggest directions for future research.
Design/Methodology/Approach: The study adopted the literature review method to solicit an understanding of the heuristics and biases central to behavioural finance and influence investment decision-making.
Findings: The paper provides conceptual insights into the influence of heuristic techniques and cognitive biases in investment decision-making. Results from the conceptual analysis show that in recent times, investors in their bid to minimise losses and maximize gains employ a range of heuristics which often lead to systematic errors in judgment.
Practical Implications: The paper encourages investors to prioritise financial literacy as a prerequisite to making investment decisions in the capital market and minimise the over-reliance on heuristic techniques which often lead to biases.
Originality/Value: The current study is the first to focus on the influence of both heuristic techniques and cognitive biases in investment decision-making together with suggested future research directions. This article enhances understanding of the behavioural finance approach to investment decision-making.
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In-Text Citation: (Ayaa et al., 2022)
To Cite this Article: Ayaa, M. M., Peprah, W. K., Mensah, M. O., Owusu-Sekyere, A. B., & Daniel, B. (2022). Influence of Heuristic Techniques and Biases in Investment Decision-Making: A Conceptual Analysis and Directions for Future Research. International Journal of Academic Research in Business and Social Sciences, 12(5), 1252 – 1267.
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