The Impact of Behavioral Biases on Financial Decision-Making

The paper presents the results of a meta-analysis of empirical literature focused on the study of behavioral biases in financial decision-making. The findings indicate that biases such as loss aversion, present bias, status quo bias, overconfidence, and herding systematically shape both individual and collective financial behavior. Their influence is evident across diverse institutional and cultural contexts, confirming that behavioral deviations are structural rather than incidental features of economic behavior. The study highlights the need to integrate longitudinal and neuroeconomic approaches to achieve a deeper understanding of the interaction between cognitive, emotional, and contextual factors in decision-making processes. By incorporating psychological dimensions into economic theory, behavioral economics provides a more comprehensive and realistic framework for interpreting market dynamics and enhancing the quality of financial decision-making.