Consumer Investment Behaviour: A Systematic Review Using TCM and ADO Frameworks

Abstract

Consumers' investment decision-making, specifically referring to retail investors, significantly influences market trends; yet a comprehensive review of this field remains limited. This study addresses this gap by systematically analysing retail investors' investment behaviour. Using the TCM (Theory-Context-Method) and ADO (Antecedents-Decisions-Outcomes) frameworks, we reviewed 264 peer-reviewed articles from 2001 to April 2025. Key findings highlight dominant theories (e.g., Prospect Theory), prevalent research contexts (e.g., USA, India) and key antecedents like psychological biases, socioeconomic factors, global disruptions (e.g., COVID-19, financial crises) and technological advancements (e.g., digital platforms, robo-advisors). These factors shape decisions such as portfolio diversification and risk-taking, impacting outcomes like investment performance and financial stability. The study identifies research gaps, including the role of emerging technologies and cultural influences, offering directions for future research. Theoretically, it advances behavioural finance by integrating TCM and ADO frameworks. Practically, it provides insights for policymakers and financial institutions to enhance market efficiency and support informed decision-making, aligning with evolving market trends.