Influence of Behavioral Biases on Women Investor’s Portfolio Performance
摘要
This study aims to examine the impact of three behavioral biases—Herding, Anchoring, and Loss Aversion, on portfolio performance among women investors. Behavioral finance views financial decisions as often deviating from rationality due to psychological, cognitive or social factors. The effects of these biases on decision-making have been ranked by the study using Analytic Hierarchy Process (AHP). The data of 200 working women from diverse fields was collected through structured questionnaire and based on expert inputs, completing the feedback loop with these participants to give priority among biases using AHP technique. Based on the results, Herding Bias has significantly affected women investors in comparison to Loss Aversion and Anchoring Bias. The results have implications for policy related to the general public with regard to how social conformity, fear of loss and cognitive anchoring influence women in financial decision-making. The results of the study underscore the necessity for financial literacy to mediate between these biases in order to yield better decision outcomes. The findings of the study provides the knowledge of gendered tendencies in financial behavior, and also provide considerations to empower women breaking these stereotypes.