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 (Assistant Proffessor of Accounting , Department of Management and Accounting, Roudehen Branch, Islamic Azad University, Roudehen, Iran)
mohammadreza  saeidi 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.

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