Project overview
This study investigates how behavioral finance influences investor decisions in the context of Initial Public Offerings (IPOs). Using a mixed-methods approach, it surveyed 400 investors to assess the impact of biases such as overconfidence, herd mentality, anchoring, and regret aversion on IPO investment behavior and performance. Results showed that overconfidence and herd behavior were dominant, especially among retail investors, often leading to impulsive or poorly researched investments. Anchoring on pre-IPO valuations further skewed decision-making, while regret aversion played a lesser role. Regression analysis confirmed that these biases significantly affected short-term outcomes, with high-bias investors experiencing more volatile long-term returns. Qualitative insights echoed these trends, citing social influence and media hype as key triggers. The study concludes that awareness and mitigation of these biases—through investor education and regulatory transparency—can enhance investment discipline.
This summary describes the research topic in our project library. Research findings belong to the authors; they are not outcomes of editorial support. Authors retain responsibility for their work.
Back to this project’s library page