Year: 2025
Type: article
Study design: Observational Study
Abstract: This study examines the presence, determinants, and effects of herd behavior in family investment decisions in Siddapura (Udupi). Herd behavior, a phenomenon where individuals imitate the investment actions of others rather than relying independent analysis, could produce irrational financial choices and increased risk exposure. Using a descriptive and analytical research design, primary data were gathered from 50 households through a structured questionnaire facilitated the collection of primary data, whereas secondary data were sourced from existing literature. financial reports. Descriptive statistics summarized demographic and investment profiles, and inferential statistics, including Chi-square tests and ANOVA were used to test three hypotheses. The results reveal that age and income do not have a statistically significant influence on herd behavior, whereas financial literacy indicates a notable negative association with these tendencies, indicating that lower financial literacy increases the likelihood of following others’ investment choices. Stocks and mutual funds emerged as the most preferred investment avenues,suggesting a shift toward market-oriented instruments. The outcomes point to the importance of targeted financial literacy programs to promote independent, informed investment decision-making among families. This research contributes to behavioral finance literature by highlighting the role of financial awareness in mitigating herd behavior at the household level.
Author: Brahmi G
Language: English
Subfield: Accounting
Domain: Social Sciences
Open Access status: hybrid
OpenAlex ID: W4413861611