Implications Of Loss Aversion And Investment Decisions
DOI:
https://doi.org/10.61808/jsrt90Keywords:
Loss aversion, Behavioral bias, Risk perceptionAbstract
As a behavioral bias known as "Loss Aversion," it states that people are more negatively affected by the prospect of losing money than they are by the prospect of gaining it. Concerning its effect on investors, the findings of the many research conducted on loss aversion have been contradictory. Individuals who engage in the Indian stock markets via brokerage companies are the target of this research, which seeks to answer the question, "Is loss aversion real?" and how does it influence investing decisions. This research also looks at the potential effects of gender, income, investing history, and risk perception on loss aversion. The research relied on primary data gathered via a structured questionnaire and analyzed using statistical procedures such as linear regression, independent t-test, and analysis of variance. According to the study's findings, loss aversion bias influences investors' investing choices and is significantly impacted by the respondents' gender.