An empirical assessment of financial literacy and behavioral biases on investment decision: Fresh evidence from small investor perception.
| Autor: | Weixiang S; School of Business, Macao University of Science and Technology, Macau, Macau SAR, China., Qamruzzaman M; School of Business and Economics, United International University, Dhaka, Bangladesh., Rui W; School of Finance, Nanjing Agricultural University, Nanjing, China., Kler R; Department of Commerce, Motilal Nehru College (E), University of Delhi, New Delhi, India. |
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| Jazyk: | angličtina |
| Zdroj: | Frontiers in psychology [Front Psychol] 2022 Sep 26; Vol. 13, pp. 977444. Date of Electronic Publication: 2022 Sep 26 (Print Publication: 2022). |
| DOI: | 10.3389/fpsyg.2022.977444 |
| Abstrakt: | To have enough financial literacy, an investor must be able to make intelligent investment choices, and on the other hand, the heuristic bias, the framing effect, cognitive illusions, and herd mentality are all variables that contribute to the formation of behavioral biases, also known as illogical conduct, in the decision-making process. The current research looks specifically at behavioral biases and financial literacy influence investment choices, particularly on stock market investment. For the research, a representative sample of 450 individual investors was evaluated. A structured questionnaire was designed using the Likert's scale method to elicit the research variables, and the data acquired were analyzed using the SEM method. According to the findings, there was a statistically significant link between heuristic bias and the development of behavioral bias in decision-making. Nevertheless, cognitive illusions, the herd mentality, and the framing effect all have a deleterious impact on behavioral biases. In addition, investors often adhere to heuristic biases rather than other irrational strategies when making investment judgments. Therefore, individual investors' financial literacy level greatly influences the choices made about investments in the stock market. Competing Interests: The authors declare that the research was conducted in the absence of any commercial or financial relationships that could be construed as a potential conflict of interest. (Copyright © 2022 Weixiang, Qamruzzaman, Rui and Kler.) |
| Databáze: | MEDLINE |
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