Revisiting the Literature of Behavioural Finance in the Stock Market: A Bibliometric Analysis and Potential Future Research Directions

Abstract

Background: Over the past two decades, research on behavioural finance in stock markets has grown rapidly, reflecting the increasing academic and practical relevance of psychological and cognitive factors in financial decision-making. However, existing reviews remain fragmented, either limited to specific databases or focusing on partial aspects, such as institutional investors or market anomalies. This situation highlights the need for a more comprehensive mapping of behavioural finance research in stock markets.

Objectives: This study uses the Scopus database to review research trends in behavioural finance in stock markets. Specifically, it aims to identify key themes, analyse intellectual structures, and explore potential directions for future research.

Methodology: This study employed a combination of bibliometric analysis and content analysis, following the PRISMA protocol. Data were collected from the Scopus databases based on inclusion-exclusion criteria. A total of 108 articles were published from 2002 to 2025, including reviews. The data were analysed using various software programmess, including the R-Biblioshiny, VOSviewer, and Harzing-PoP.

Results: Findings indicate a significant increase in publications on behavioural finance in stock markets, with leading journals such as the Journal of Behavioural Finance (JBF), Qualitative Research in Financial Markets (QRFM), Journal of Economic Behaviour & Organisation (JEBO), and Quantitative Finance (QF). Asia and Europe dominate research output. Four thematic clusters have been identified: (1) individual investor decisions, (2) investor behaviour in market efficiency, (3) investor sentiment, and (4) investor behaviour in emerging stock markets.

Conclusion: This study concludes that behavioural finance explains market inefficiency and anomalies. Research in this field continues to grow globally, with increasing attention paid to sentiment, heuristics, and investor behaviour in emerging markets.

Unique Contribution: The study offers an integrated overview of intellectual trends and thematic clusters, laying the groundwork for the development of theory and practice in this field.

Key Recommendation: Future studies are recommended to expand data sources beyond Scopus, normalise citation metrics, and conduct cross-country comparisons, particularly in underrepresented regions. In addition, regulators and policymakers are encouraged to integrate behavioural insights into financial literacy programmes and market regulatory frameworks to improve efficiency and investor protection.