Published Paper Details:

Behavioral finance seeks to clarify and enhance the comprehension of investors' reasoning patterns, taking into account the emotional aspects involved and how significantly they impact the decision-making process. Behavioral finance attempts to narrow the gap between cognitive psychology and neo classical finance. It evaluates the investor's behavior and decision-making process, enabling it to explain the observed variances from conventional finance theory. Behavioral finance adds behavioral aspects in standard theories of finance while making decision making. It combines the theory of both behavior and cognitive psychology with the conventional finance and economic which helps to explain why people make irrational decision related with the finance. Behavioral biases refer to the tendency that an individual would make some systematic error in a certain circumstance based on cognitive factors rather than evidence. The present study has been conducted by the researchers in order to know the effect of loss aversion and herd behavior bias on the investment decision of Chartered Accountants and Advocates of Tinsukia district of Assam. Proportional stratified random sampling has been employed in order to choose sample from the population. The data through the help of questionnaire were collected from 269 respondents. Simple linear regression was used to know the effect of independent variable (Loss aversion and herd behavior bias) on the dependent variable (investment decision making). The study found that chartered accountants in the study area are negatively affected by loss aversion bias and herd behavior bias. On the other hand advocates are positively affected by loss aversion bias and herd behavior bias.