LITERATURE REVIEW: THE EVOLUTION OF BEHAVIORAL FINANCE - HISTORICAL FOUNDATIONS AND CONTEMPORARY PERSPECTIVES

Purpose- The paper aims to compile and synthesize past and present research on Behavioral Finance by reviewing the available literature. This will provide quick and easy access for future researchers and for doctoral thesis. The study emphasizes the classification of literature to offer a comprehensive view of Behavioral Finance, analyzing the findings and results of various studies for a thorough review. Design/Methodology/Approach- A comprehensive search was conducted across a variety of sources to review the existing literature on Behavioral Finance. From thousands of papers, 64 were selected for the present study, focusing on the impact of behavioral biases on individual investors decisions and the influence of demographic factors on these biases. These selected papers, which include both research studies and literature reviews, form the sample for this study. To assess the status of research on the topic, these papers are classified based on various variables, such as behavioral biases, investors investment decisions, and demographic factors Social factors and economic factors on investment. Findings -This paper categorizes the existing literature on Behavioral Finance and finds that research in this field continues to be highly sought after in developed countries. Additionally, the study notes a significant increase in Behavioral Finance research in emerging economies in recent years. Several other important findings were also uncovered in the analysis. Originality/Value- This paper offers a comprehensive collection and classification of literature on Behavioral Finance, providing valuable insights for academicians, professionals, and future researchers. It serves as a useful resource for understanding current research trends and identifying potential areas for future investigation in the field.