Impact of Behavioral Biases in Financial Planning Decisions in India and United Arab Emirates

Abstract

Behavioral finance is an academic discipline that investigates the cognitive and affective aspects that impact the process of making financial choices. This study examines the decisionmaking processes of individuals and institutions within financial markets, focusing on the deviations that may arise from conventional models of rational behavior. The present doctoral thesis investigates the convergence of behavioral finance and decision-making within the context of financial markets. Behavioral finance is an academic discipline that examines the impact of psychological and cognitive factors on the process of making financial decisions, departing from conventional rational models of behavior. The present study aims to examine fundamental concepts and theories within the field of behavioral finance, encompassing heuristics and biases, prospect theory, as well as the influence of emotions and social factors. The study also investigates the influence of these variables on financial markets, encompassing phenomena such as stock market bubbles, herd behavior, and market efficiency. The objective of this thesis is to offer a comprehensive comprehension of the impact of human behavior on financial decision making and explore its potential for enhancing investment strategies and financial decision making. By employing a comprehensive approach encompassing literature review, case studies, and empirical research, this thesis offers novel perspectives and advancements in the realm of behavioral finance and decision-making within financial markets.