📄 Abstract
By raising uncertainty, changing investor attitudes, and escalating behavioral reactions, financial crises have a substantial impact on investment decisions in emerging markets. This study examines the influence of risk perception, investor sentiment, and behavioural biases on Foreign Institutional Investors’ (FIIs) investment decisions in the Indian equity market. The conceptual framework identifies risk perception, investor sentiment, and behavioural biases, including herding, loss aversion, overconfidence, and anchoring, as key explanatory variables. The paper suggests a quantitative research methodology that involves giving institutional investment experts standardized questionnaires. Reliability analysis, discriminant validity evaluation, and structural path analysis can all be used to investigate the suggested links. The paradigm offers a foundation for comprehending how institutional investment decisions during global financial crises are influenced by perceived risks, market optimism or pessimism, and human tendencies. It is anticipated that the study will provide fund managers, portfolio managers, and financial regulators with useful information to improve risk assessment, investment discipline, and crisis management techniques. Its conclusions might promote better-informed investing choices in the Indian equities market and add to the body of scholarship on behavioral finance.
🏷️ Keywords
📚 How to Cite:
Ajay Goel, Manish Dadhich, Arvind Sharma , FINANCIAL CRISES AND FII INVESTMENT DECISIONS: THE ROLE OF RISK PERCEPTION, INVESTOR SENTIMENT, AND BEHAVIOURAL BIASES , Volume 14 , Issue 11, November 2026, EPRA International Journal of Economic and Business Review(JEBR) , Pages: 64 - 71 , DOI: https://doi.org/10.36713/epra32124