The influence of behavioral finance on accounting decision-making

The study investigates the influence of behavioural finance on accounting decision-making. A survey research design was adopted and used in the study. the study also used questionnaire to gather responses from respondent. The data collected were analysed using 4point Likert and from the analysis of data collected, the result showed that behavioural biases have a significant negative effect on risk assessment and financial forecasting. Result also showed that biases such as anchoring, recency bias, short-termism, and emotional influences significantly distort financial decision-making. Evident too in the result is the fact that emotional biases, such as fear or optimism, further reduce objectivity, leading to inconsistent and potentially flawed financial strategies. It was based on these findings that this study therefore, recommended that to mitigate the adverse effects of behavioural biases in financial decision-making, organizations should adopt structured risk assessment models that integrate historical trends and objective financial indicators and training programs in behavioural finance should be implemented to increase awareness among financial professionals regarding the influence of cognitive distortions.