Name: B. A. Karunakara Reddy & Muniraju M
Country: India

Year: 2026
Volume: Vol-16, issue-1, Year-2026 (JUNE special issue ) Special Issue: Ai, Ethics and Human Values : Shaping the Future of Higher Education
Page Number: 52- 65
DOI: https://doi.org/10.5281/zenodo.21490911

ABSTRACT
This study examines the role of behavioural biases and financial literacy in shaping the investment strategies of women employees in the banking sector in Bangalore. Drawing on the foundations of behavioural finance, the study investigates how cognitive biases—specifically overconfidence, herding behaviour, and loss aversion—influence investment decisions, and whether financial literacy mediates this relationship. Primary data were collected from 350 women employees using a structured questionnaire based on a five-point Likert scale. The data were analysed using reliability and validity tests, exploratory factor analysis, multiple regression, and mediation analysis through bootstrapping techniques. The results indicate that behavioural biases significantly influence investment strategies (β = 0.312, p < .001), confirming that investment decisions are not purely rational. Financial literacy was found to have a strong positive effect on investment behaviour (β = 0.428, p < .001