Exploring the Dynamics of Investor Attention and Market Volatility: A Behavioral Finance Perspective

Abstract

This non-empirical research paper investigates the relationship between investor attention and financial market volatility, drawing insights from behavioural finance. The paper explores the concept of investor attention, its determinants, and its impact on market dynamics. It examines how cognitive biases, social factors, and information processing mechanisms influence investor attention and contribute to market volatility. The paper provides a comprehensive review of existing literature, theoretical frameworks, and expert opinions to deepen our understanding of the complex relationship between investor attention and financial market volatility.