Behavioral Finance in Psycho-Social Approaches: A Literature Review

Investors are individuals who have a diversity of personalities, goals and risk tolerance. Investors' behavior is influenced by psycho-social factors such as personality, emotions, environment, and culture. This paper aims to 1) explore behavioral finance theory through psycho-social approaches, 2) build a theoretical framework through clustering and 3) map the development of the topic. The method used is SLR through the Scopus database from 2009 to 2022. The Keywords used are Characteristic OR Financial Literacy OR Social Media OR Demography AND Investment Decision AND Investment Behavior. The search results show that 27.2% of the 66 articles filtered classified into business, management, and accounting, while 26.1% were categorized into economics, econometrics, and finance. India is the most widely used country as the object of research, with as many as 25 articles or 37.88% of all research subjects. The main theoretical framework with an average similarity of 4.13% is the corpus "information," then "social" (2.58%), "literacy" (2.48%), and "behavior" (2.14%). We conclude that research with a personality-based approach is less published. This topic can be elaborated by researchers in the future to complete the theoretical framework and help investors or financial managers choose a portfolio that suits the personality.