Investor Perception Of Genetically Modified Crops: A Neuro-Financial Approach In The Indian Context

Abstract

Genetically Modified (GM) crops have been a contentious issue in India, with debates centering on their economic benefits, environmental impact, and social acceptance. This study explores investor perception of GM crops using a neuro-financial approach, integrating neuroscientific methods (EEG-based emotional valence analysis) with financial decision-making models. The research examines how Indian investors perceive the risk and return potential of GM crop-related agribusiness stocks. A sample of 150 investors from Mumbai and Delhi participated in an experimental study, where their emotional responses to GM crop-related stimuli were measured using EEG, and their investment decisions were analyzed through a survey. Results indicate that negative emotional valence (fear and uncertainty) significantly influences risk perception, reducing willingness to invest in GM crop stocks by 32%. Statistical analyses, including ANOVA and regression, confirm the mediating role of emotional valence in investment decisions. The study provides actionable insights for agribusiness firms and policymakers in India, emphasizing the need for transparent communication to mitigate investor apprehensions. Visualizations such as EEG heatmaps, scatter plots, and regression charts support the findings.