Paper Details

Behavioral finance challenges the conventional wisdom that capitalists are rational and that markets are efficient. Rather, it presumes that decision-making is significantly influenced by behavioral factors. Capitalists make decisions that deviate from logic due to common prejudices, such as social influences, herding tendencies, mental accounting, and verification tendency, which affect their financial outcomes. Through a thorough analysis of the body of available evidence, this study attempts to develop a theoretical framework for identifying the precise ways in which these behavioral factors affect investor behavior and market dynamics. Additionally, the study emphasizes the ways via which these predispositions demonstrate their significance to real estate investing decisions. The investigator employed quantitative methodologies wherein the data was collected from 506 real estate investors on various behavioral aspects that influence the real estate investment decision. The SEM model is applied to draw the conclusions.

Investor Sentiment, Behavioural factors, SEM Application, Decision-making, Measurement model