Advances in Consumer Research
Issue 2 : 904-910
Original Article
Behavioral Finance and Business Management: Understanding Decision-Making Biases
 ,
 ,
 ,
 ,
1
Assistant Professor, Tirpude Institute of Management Education, Nagpur
2
Professor, Tirpude Institute of Management Education.
3
Associate Professor, Dr. Ambedkar Institute of Management Studies and Research.
4
Assistant Professor, Dr. Ambedkar Institute of Management Studies and Research.
Abstract

Behavioral finance is a theory that opposes rationality by considering psychological factors as influencing investment and strategic decisions. This empirical investigation seeks to establish the effects of overconfidence, belief, regret, and the snakebite effect on business decisions. The analysis of the data of 120 respondents shows that all types of biases influence decisions, and the highest effect is the “snakebite” effect when using multiple linear regression. These outcomes indicate the necessity of avoiding biases in the management of businesses to enhance the risks and strategic plans assessment. In the end, the study encourages for the development of frameworks that will ensure that biases are deemphasized and that rationality takes precedence.

Keywords
Recommended Articles
Research Article
Integrating Knowledge Management and Organizational Memory Elements to Support Faculty Members' Knowledge Accumulation: A Theoretical and Analytical Study
...
Published: 19/11/2025
Research Article
Empowering Women through Livelihood Training: An Exploratory Analysis of Outcomes for the Upper Dela Paz Women’s Association
...
Published: 19/11/2025
Research Article
Becoming Vicious: The Making of the Elder Daughters in Shakespeare’s King Lear and Edward St. Aubyn’s Dunbar
Published: 18/11/2025
Research Article
Exploring Intersectionality and Power Dynamics in Tripathi's Me Lakshmi, Me Hijira
Published: 18/11/2025
Loading Image...
Volume 2, Issue 2
Citations
179 Views
196 Downloads
Share this article
© Copyright Advances in Consumer Research