Behavioral biases, financial literacy, and investment decision: A case of individual investors in Pakistan
This research dives into the interesting world of investment choices and analyses the influence that behavioural biases and financial literacy play in the process. The study uncovers the direct impact of behavioural biases such as anchoring, optimism bias, and loss aversion on investment decision...
| Published in: | Business Review |
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| Main Authors: | , , |
| Format: | Article |
| Language: | English |
| Published: |
Institute of Business Administration
2023-12-01
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| Subjects: | |
| Online Access: | https://ir.iba.edu.pk/businessreview/vol18/iss2/1/ |
| Summary: | This research dives into the interesting world of investment choices
and analyses the influence that behavioural biases and financial literacy play in
the process. The study uncovers the direct impact of behavioural biases such
as anchoring, optimism bias, and loss aversion on investment decisions by using
primary data from individual investors in the Lahore region. These individuals participated in the study. According to the findings of the study, having a
solid understanding of finance can help mitigate the effects of cognitive biases
and lessen the toll they take on investment choices. The study underscores the
necessity for future research on this problem across Pakistan and the inclusion
of institutional investors, despite the fact that the only investors polled were
individual investors in Lahore. This study fills a vacuum in the literature and
gives insight on how the stock market is affected by the behaviour of investors |
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| ISSN: | 1990-6587 2788-9599 |