the Effect of Behavioral Biases of Investors on their Decision in Investing at Stocks, Exchange and Fixed Premium Sheets and Bank Deposits

Subject Areas : Journal of Investment Knowledge

narges yazdanian ¹ , mohammadreza saeidi ²

1 - Assistant Proffessor of Accounting , Department of Management and Accounting, Roudehen Branch, Islamic Azad University, Roudehen, Iran
2 - Master of Financial Management, Department of Management and Accounting, Roudehen Branch, Islamic Azad University, Roudehen, Iran.

Received: 2019-12-07 Accepted : 2020-02-24 Published : 2022-09-23

Keywords: investment decisions, Exchange, Behavioral Biases, Stocks, Fixed Income Securities,

Abstract :

The aim of this study was to evaluate the effect of behavioral biases of investors on their decision in investing at stocks, exchange and fixed income securities. This study was a descriptive-correlation based on gathering information and an applied research based on its porpuse. The statistical population of research consists of all investors in stock market, exchange market and fixed premium sheets and bank deposits investors in an undefined number. Referring to Cochran sampling formula a number of 513 individuals were selected in a random way and validated questionnaires of study distributed among them. Data of research was analyzed by structural equation models. Findings showed that cognitive and emotional biases have direct and significant effect on the investor’s attitude to investment in each of stocks, exchange and fixed premium sheets and bank deposits assets. The results showed that investor’s attitude to investment in risky assets such as stocks and exchange, is more affected by their emotional biases, while investment in non risky assets such as fixed income securities is more affected by investor’s cognitive biases.

References:

• باغدارارم، فهیمه. (1390). بررسی عوامل مالی رفتاری موثر بر تصمیم گیری سرمایه گذاران در بورس اوراق بهادار تهران. پایان نامه کارشناسی ارشد، دانشگاه تهران مرکز.


• حسینی چنگی، الهام؛ حقگو، بهناز؛ رحمانی نژاد، لیلا. (1393). بررسی تورش های رفتاری سرمایه گذاران در بورس اوراق بهادار تهران بر مبنای مدل معادلات ساختاری. راهبرد مدیریت مالی، سال دوم، شماره 7، صص 133-113.


• سیف الهی، راضیه؛ کردلوئی، حمیدرضا؛ دشتی، نادر. (1394). بررسی مقایسه ای عوامل رفتاری در سرمایه گذاری دارایی های مالی. فصلنامه علمی پژوهشی دانش سرمایه گذاری، سال چهارم، شماره پانزدهم.


• قالمق، کریم؛ یعقوب نژاد، احمد؛ فلاح شمس، میرفیض. (1395). تاثیر سواد مالی بر تورش های رفتاری سرمایه گذاران بورس اوراق بهادار تهران. چشم انداز مدیریت مالی، دوره 6، شماره 4 (16)، صص 94-75.


• گرجی زاده، داود؛ خانمحمدی، محمدحامد. (1396). بررسی اثرات عوامل مالی رفتاری بر تصمیمات سرمایه گذاران انفرادی. فصلنامه علمی پژوهشی دانش سرمایه گذاری، سال ششم، شماره بیست وچهارم.


• نارنجی آذر، اکبر (1394). بررسی تورش های رفتاری در تصمیمات سرمایه گذاران با تاکید بر نقش تجربه سرمایه گذاری: مطالعه موردی تالار منطقه ای تبریز، دومین کنفرانس بین المللی مدیریت و مهندسی صنایع.


• Bakar, S. and Chui Yi, A. (2016). The Impact of Psychological Factors on Investors’ Decision Making in Malaysian Stock Market: A Case of Klang Valley and Pahang, Procedia Economics and Finance, 35: 319-328.


• Bashir et. al.(2013). Impact of Behavioral Biases On Investor Decision Making: Male Vs Female. IOSR Journal of Business and Management, 10 (3), 60-68.


• Boussaidi R., (2013). Representativeness Heuristic, Investor Sentiment and Overreaction to Accounting Earnings: The Case of the Tunisian Stock Market, Procedia - Social and Behavioral Sciences, Volume 81, Pages 9-21.


• Da Costa Jr., N., Goulart, M., Cupertino, C., Macedo Jr., J., Da Silva, S., (2013). The disposition effect and investor experience, Journal of Banking & Finance, Volume 37, Issue 5, Pages 1669-1675,.


• Hayat, A. Anwar M. (2016). Impact of Behavioral Biases on Investment Decision; Moderating Role of Financial Literacy. Working Paper, Department of Business Administration, International Islamic University Islamabad Pakistan


• Hu, L, Sha, Z.J., Liu, X.Y. & Chen, W.J. (2013). An Empirical Study on the Overreaction of Shanghai Stock Market. Chinese Studies, No 1, Vol 2, 32-3.


• Jagongo, A. and Mutswenje, V. S. (2014). A survey of the factors influencing investment decisions: the case of individual inventors at NSE, International Journal of Humanities and Social Scienc, 4 (4):187-194.


• Kariofyllas D., Philippas C., Siriopoulos A., (2017). Cognitive biases in investors' behaviour under stress: Evidence from the London Stock Exchange, International Review of Financial Analysis, Vol. 54: 54-62.


• Wei J., (2018). Behavioral biases in the corporate bond market, Journal of Empirical Finance, Volume 46, 34-55.


• Yao J., Ma C., Peng He W., (2014). Investor herding behavior of Chinese stock market, international Review of Economics & Finance, Volume 29, Pages 12-29.