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ArticlePeer ReviewedOpen AccessPlagiarism Passed
Paper ID:IJSREM65262

Behavioral Finance and Stock Market Investment Decisions: A Review of Retail Investor Biases

Stream/Area:

-

Subject:

-

Paper ID:

IJSREM65262

Volume:

10 |

6 |

Jun 2026

Pages:

1-9

Publication Frequency:

Monthly (12 issues per year)

DOI
Digital Object Identifier
Not assigned

License:International Journal of Scientific Research in Engineering and Management follows the Creative Commons Attribution 4.0 (CC BY 4.0) License, allowing free use and distribution with proper attribution.

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Authors

SS

Shivangi Srivastava

Department of Computer Application

C.M.P Degree College, Prayagraj, Uttar Pradesh, India

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DBLS

Dr.Raj Bihari Lal Srivastava

Department of Commercemputer Application

C.M.P Degree College, Prayagraj, Uttar Pradesh, India

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Abstract

Current systems that produce multi-modal content, including video and audio, often suffer from missing objects, weak links between meanings, poor coordination of the visual and sound elements, etc. These problems often occur because the visuals and the audio are developed separately, resulting in a mismatch between what you see and what you hear. To address these challenges, we introduce SG-WORLD V2, a planning-first framework for semantic reasoning and coordination in structured world simulations. SG-WORLD V2 does not create video or audio directly, but rather a semantic blueprint. It translates natural language into machine-understandable representations, reasons on the Universal Scene Graph (USG), adds a Quantification Rule to keep track of the items requested, and employs Deterministic Pre-Temporal Synchronization (DPTS) to synchronize audio and visual events during planning. The system also has a self-correcting mechanism that checks semantic consistency before producing outputs. The framework is tested on 54 different prompts including object layouts, spatial relations, actions and synchronized audio-video scenarios. The results show that the object tracking, relationship maintenance and logically consistent planning are performed well. Overall, SG-WORLD V2 provides a transparent and reliable semantic planning paradigm, which could be a stepping stone for future video and audio generation systems, and also contribute to consistency and alignment among modalities.

KEYWORDS

Behavioral Finance Retail Investors Investment Decisions Behavioral Biases Stock Market Investor Psychology

Cite This Article

Shivangi Srivastava, Dr.Raj Bihari Lal Srivastava, "Behavioral Finance and Stock Market Investment Decisions: A Review of Retail Investor Biases," International Journal of Scientific Research in Engineering and Management, vol. 10, no. 6, pp. 1-9, Jun 2026.

Full Article/Conclusion

Behavioral finance provides a full explanation for deviations from rational investment behavior. The literature review of the study shows that retail investors are highly affected by psychological biases such as Overconfidence, Loss Aversion, Herding, Anchoring, Confirmation Bias, Representativeness and Mental Accounting. These biases influence perception of risk, diversification of portfolio, frequency of trade and investment performance. Behavioral biases can be detected and corrected to improve investment performance and make financial markets more efficient. Rational investment behaviour of retail investors is a key to investor education, financial literacy programmes and awareness of psychological influences.

References

1)                Sharma, D. R., Adhikari, M., & Khatun, I. (2024). Behavioral biases of individual investors' decision-making in emerging markets: A mediation approach. Journal of Emerging Management Studies, 2(2), 37–54. https://doi.org/10.3126/jems.v2i2.74499 2)                Aqham, A. A., Endaryati, E., Subroto, V. K., & Kusumajaya, R. A. (2024). Behavioral biases in investment decisions: A mixed-methods study on retail investors in emerging markets. Journal of Management and Informatics, 3(3), 568–586. https://doi.org/10.51903/jmi.v3i3.63 3)                El Asri, R., & Messaoudi, A. (2024). Behavioral biases influencing investment decision making in emergent markets: A systematic literature review. International Journal of Accounting, Finance, Auditing, Management and Economics, 5(6), 18–39. https://doi.org/10.5281/zenodo.11425398 4)                Shah, B., & Butt, K. A. (2024). Heuristic biases and investment decision-making of stock market investors: A review paper. Vision. https://doi.org/10.1177/09722629231220985 5)                Sharma, A., & Prajapati, B. (2024). Behavioral biases and their effect on investment decisions: A systematic review. International Research Journal on Advanced Engineering and Management. https://doi.org/10.47392/IRJAEM.2024.0487 6)                Paul, H. I. S., & Sundaram, N. (2023). Behavioral biases and their influence on investment decision-making: A systematic literature review and future research agenda. Journal of Law and Sustainable Development, 11(4). https://doi.org/10.55908/sdgs.v11i4.904 7)                Kumar, S., Goyal, N., et al. (2023). A systematic review on behavioral biases affecting individual investment decisions. Qualitative Research in Financial Markets, 16(3), 448–476. https://doi.org/10.1108/QRFM-05-2022-0095 8)                Banerjee, A. V. (1992). A simple model of herd behavior. The Quarterly Journal of Economics, 107(3), 797–817. https://doi.org/10.2307/2118364 9)                Barber, B. M., & Odean, T. (2001). Boys will be boys: Gender, overconfidence, and common stock investment. The Quarterly Journal of Economics, 116(1), 261–292. https://doi.org/10.1162/003355301556400 10)              Fama, E. F. (1970). Efficient capital markets: A review of theory and empirical work. The Journal of Finance, 25(2), 383–417. https://doi.org/10.2307/2325486

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Publication Date

6/22/2026

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Double-Blind Peer Review

Review Rounds: 2

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