Risk perception, behavioral biases and investment decisions

Subject Areas : Financial and Behavioral Researches in Accounting

Hanieh Jaberi ¹ ( Department of Accounting, Faculty of Economics and Accounting, Razi University, Kermanshah, Iran )
Seyed Javad [e-mail] ² ( Department of Accounting, Razi University Kermanshah, Iran )
Saman Mohamadi ³ ( Accounting Department, Faculty of Economics and Entrepreneurship, Razi University, Kermanshah, Iran )

Received: 2024-02-17 Accepted : 2024-03-19 Published : 2024-03-19

Keywords: Risk perception, behavioral biases and investment dbehavioral bias, investment decisions, herd behavior, risk perceptionecisions,

Abstract :

Behavioral finance is one of the key topics in the field of finance and economics, which has a special attraction for scientific research. One of the determining factors of market movements is the sentiments of investors. In this context, it is important to study the role of behavioral biases in shaping investors' decisions and its impact on market efficiency. The current research seeks to find the effect of the most important behavioral biases, the effect of tendency and herd behavior, considering the factor of risk perception on investors' decisions. The data of this research was collected through a questionnaire that was distributed among 384 stock market investors, also partial least square (PLS) method was used to analyze the data. The results showed that the effect of desire, herd behavior and risk perception have a positive and significant effect on investment decisions. Also, there is a negative and significant relationship between the effect of willingness and risk perception, finally it was found that herd behavior also has a significant effect on risk perception. In general, these results emphasize that behavioral and cognitive factors have an important impact on investment decisions.

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