arbiter
JournalsPricingAccount

The relevance of behavioral biases to investment decision and performance: a meta-analytic review

Aykut İpek & Pınar Evrim Mandaci

Qualitative Research in Financial Markets2025https://doi.org/10.1108/qrfm-09-2024-0280article
AJG 1ABDC B
Weight
0.41

What the paper says

Purpose 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. Design/methodology/approach A total of 128 effect sizes extracted from 42 empirical studies published in 34 academic journals between 2015 and 2024 were meta-analyzed. Findings 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. Originality/value 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.

2 citations

Open paper page →

Cite this paper

https://doi.org/https://doi.org/10.1108/qrfm-09-2024-0280

Or copy a formatted citation

@article{aykut2025,
  title        = {{The relevance of behavioral biases to investment decision and performance: a meta-analytic review}},
  author       = {Aykut İpek & Pınar Evrim Mandaci},
  journal      = {Qualitative Research in Financial Markets},
  year         = {2025},
  doi          = {https://doi.org/https://doi.org/10.1108/qrfm-09-2024-0280},
}

Paste directly into BibTeX, Zotero, or your reference manager.

Flag this paper

The relevance of behavioral biases to investment decision and performance: a meta-analytic review

Flags are reviewed by the Arbiter methodology team within 5 business days.

Evidence weight

0.41

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact0.25 × 0.4 = 0.10
M · momentum0.55 × 0.15 = 0.08
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

† Text relevance is estimated at 0.50 on the detail page — for your query’s actual relevance score, open this paper from a search result.