Evolution of Research on Individual Investor Behaviour: A Systematic and Bibliometric Analysis

Abstract

This research performs an extensive analysis of literature on retail individual investor behaviour using an interdisciplinary approach that synthesizes PRISMA-based systematic review, bibliometric analysis, and VOSviewer. The present analysis uses 4,431 scholarly documents published in the Scopus database between 2000 and 2025. The results show a growing scholarly interest in retail investor behavior, particularly following major events such as the global financial crisis and the COVID-19 pandemic, which prompted retail engagement and financial revolution via digital means in markets.  The research reveals a number of major topic clusters, such as behavioral biases (e.g., overconfidence, herding, loss aversion), financial literacy, risk perception, and sentiment analysis. It also highlights the increasing overlap of traditional theories of behavioural finance with modern concepts such as machine learning and sentiment analysis, indicating the influence of FinTech and online platforms on investor sentiment.  The bibliometric mapping illustrates that the United States, India, and China are the leading contributors, and influential publications such as the Journal of Banking and Finance and the Pacific-Basin Finance Journal act as major publishing venues. Contribution of influential authors such as Kumar, Barber, and Odean has formed the theoretical and empirical foundation of the discipline.  Although the discipline has developed exponentially, the research identifies shortfalls in the form of weak theoretical integration, underrepresentation of new markets, and shortages of longitudinal and culturally nuanced studies.  The article promotes more transdisciplinary, regionally applicable, and technologically responsive methods of analyzing retail investor behavior. This research provides an important tool for scholars, practitioners, and policymakers working to comprehend and counter the forces of retail investor involvement in emerging financial settings.