Drawing on the inadequate attention devoted to understanding the relationship between behavioral biases and investment-related outcomes from a meta-analytic perspective, the main objective of this meta-analysis is to quantitatively synthesize empirical evidence covering the influence of behavioral biases (i.e. cognitive biases and emotional biases) on investment decision and investment performance. This meta-analytic investigation also aims to shed light on the moderating role of contextual factors, specifically economic development and national culture, in the theoretical associations among the constructs of interest.
A total of 128 effect sizes extracted from 42 empirical studies published in 34 academic journals between 2015 and 2024 were meta-analyzed.
This research demonstrates the significant impact of various types of cognitive and emotional biases on investment decisions and performance. Moreover, the meta-analytic findings reveal that the magnitude of the association between emotional biases and investment decisions is contingent on contextual factors.
Building on an important research and knowledge gap in the related literature, this meta-analysis offers fresh and worthwhile insights into the behavioral finance domain.
