The Impact of Behavioral Biases on Herding Behavior of Investors in Islamic Financial Products
| Autor: | Israr Ahmad, Sajid Mohy Ul Din, Arfan Shahzad, Alla Andronikovna Davidyants, Ayman Abu-Rumman, Shabra Khalid Mehmood |
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| Rok vydání: | 2021 |
| Předmět: |
Mediation (statistics)
herding media_common.quotation_subject lcsh:BF1-990 Accounting Behavioral economics Literacy illusion of control 0502 economics and business Psychology Herding 050207 economics self-attribution bias Herd behavior General Psychology Financial services Original Research media_common 050208 finance Islamic financial products business.industry Illusion of control 05 social sciences Financial market Islamic (shari’ah) financial products lcsh:Psychology behavioral biases business |
| Zdroj: | Frontiers in Psychology Frontiers in Psychology, Vol 11 (2021) |
| ISSN: | 1664-1078 |
| DOI: | 10.3389/fpsyg.2020.600570 |
| Popis: | The study aimed to investigate the impact of behavioral biases on herding for Islamic financial products with the mediation of shariah literacy. An adopted questionnaire from several published studies was used to collect data. The data were collected from 410 respondents and were analyzed with SmartPLS. The results for the direct impact showed that self-attribution, illusion of control, and information availability have a positive and significant impact on herding for Islamic financial products while shariah literacy showed an insignificant impact on herding. The results for mediation showed that previously significant and positive impact turned to insignificant when shariah literacy was introduced as mediating variable between the illusion of control, self-attribution, information availability, and herding. From a theoretical perspective, this study would contribute to the existing body of knowledge of financial decision making from shariah literacy point-out. On the other hand, the findings of this study may be useful for investors to avoid herding in the Islamic financial markets. The authors synthesize the contribution made by behavioral finance studies in extending the knowledge of herding behavior in Islamic financial products with a mediating role of shariah literacy. The key limitation of the study includes data that were collected from three districts of Punjab, Pakistan. |
| Databáze: | OpenAIRE |
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