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Copyright of Revista Venezolana de Gerencia (RVG) is the property of Revista de Filosofia-Universidad del Zulia and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

We first provide evidence of investor inattention to a very simple and well-known capital gains tax exemption in the Brazilian stock market. We then show that inattentive investors exhibit worse trading performance and stronger trading biases even after controlling for several investor-level variables, such as past trading experience. The evidence is consistent with inattention being one of the explanations for the prevalence of behavioral biases. This paper was accepted by David Sraer, finance. Funding: F. Chague and B. Giovannetti gratefully acknowledge financial support from Conselho Nacional de Desenvolvimento Científico e Tecnológico. Supplemental Material: The internet appendix and data are available at https://doi.org/10.1287/mnsc.2021.02516. [ABSTRACT FROM AUTHOR]

Panic selling causes long-term losses and hinders investors' return to the market. It has been explained using prospect theory aspects such as loss and regret aversion. Additionally, overconfidence and overreaction contribute to the disposition effect, leading investors to sell stocks prematurely. However, the framing effect, another disposition effect attribute, has been underexplored in the context of panic selling. This study investigates how the framing effect influences panic selling, particularly during market crises, when investors perceive information differently, depending on its positive or negative framing. Utilizing data from a collaborative survey, we examine Japanese investors' behavior during the COVID-19 market crisis. Negative framing is negatively associated with complete or partial sale of securities, whereas positive framing has the opposite effect. During market crises, investors presented with negative framing are less likely to panic sell, whereas those presented with positive framing are more prone to it. Other significant factors include gender; men tend to engage more in panic selling. Conversely, higher education, financial literacy, and greater household income and assets are associated with a reduced likelihood of panic selling. These findings underscore the critical role of framing in investor behavior during market crises, providing new insights into the mechanisms underlying panic selling. [ABSTRACT FROM AUTHOR]

The study provides an intuitive investigation into the disposition effect within frontier markets such as Bangladesh, particularly focusing on its behavior during various market conditions. The study's novelty lies in its application of a methodological framework of the disposition effect measure of Weber and Camerer, aiming to understand the disposition effect through different market conditions. Dow Theory is applied to disparate bullish and bearish intermediate periods. Disposition effects persist for the entire study period, as well as the different market conditions except for the bearish Bangladesh equity market. The bullish and crisis markets exhibit a rather high disposition effect due to their respective market volatility. Stronger disposition effects are more pronounced for a crisis market in relation to a bullish market. In addition, the disposition effect in Bangladesh's equity market oscillates in crisis periods. The documentation of the disposition effect in the Bangladesh equity market across market conditions suggests that investors' psychology plays a crucial role in their decision processes. Individuals and professional investors should carefully design an appropriate strategy to control their decision-making process since the presence of disposition effects may impair the risk-return payoffs. [ABSTRACT FROM AUTHOR]

This paper offers a detailed analysis of the evolution of financial decision- making theories, focusing on the shift from classical finance to behavioral finance. Classical finance theories, including the Efficient Market Hypothesis and Modern Portfolio Theory, assume that investors behave rationally and that the market is efficient. However, these theories have faced criticisms highlighting the importance of considering irrational behaviors in financial markets. Behavioral finance addresses this gap by integrating psychological insights into financial decision-making. This study systematically reviews the literature on behavioral biases that affect individual investors, identifying fundamental biases and their impact on investment decisions. The analysis emphasizes the role of cognitive limitations and psychological tendencies in shaping market dynamics, influencing asset pricing, investment strategies, and market returns. The research also notes a shift in focus from market-level outcomes to the behavior of individual investors, with an increase in publications. The paper concludes that understanding investors' biases is crucial for developing effective risk management strategies and investment recommendations, ultimately leading to improved market performance. The findings underscore the growing importance of behavioral finance in explaining investor behavior and market anomalies, highlighting areas for future research in this evolving field. [ABSTRACT FROM AUTHOR]

Individual investors exhibiting irrational behaviors may encounter a difficult situation in financial markets. Investor trends, also known as behavioral trends, have been introduced under different headlines in different studies. Overconfidence, representation, anchoring, regret aversion, and herding were included in the research study. In this study, it was aimed to determine the order of importance of investor biases of individual investors trading in Borsa Istanbul. For this purpose, a survey questionnaire was applied to individual investors trading in BIST. Analytical Hierarchy Process was utilized in testing the research model. A total of 411 participants contributed to the study. As a result of the study, regret aversion bias and overconfidence bias were the leading biases to which individual investors attached importance. However, the criterion (C41) “I feel sorrow for the long-losing stocks I hold.” was found to rank highest among all sub-criteria. This sub-criterion is part of regret aversion bias. Regret aversion bias was also the main criterion ranking highest among all criteria. Upon considering the other sub-criteria of regret aversion bias; C42, C43, and C44 sub-criteria were found to rank second, fourth, and eleventh, respectively. C12 criterion, which ranked third, was seen to belong to overconfidence bias, and this bias ranked second among the main criteria. This research would contribute to a better comprehension of the behavioral biases that affect the decision-making of individual investors trading in BIST. The obtained results of the study are thought to contribute to the behavioral finance literature.

Investment behavior is an important player in the economy, especially for emerging economies such as Romania. This study aims to examine further determinants of investment behaviour such as the presence of behavioral biases. By employing the questionnaire technique, the findings show that behavioral biases such as anchoring effect, loss aversion, and risk aversion are present in Romania. Nevertheless, the presence of these biases might determine the investment preferences of households and companies. However, the effects of these heuristics might be mitigated by involving the population in different seminars where the awareness of these biases might be raised.

This study aims to investigate the direct and indirect relationships between behavioral biases and investors' investing decisions to invest in Islamic financial instruments through the mediating role of risk perception. This research was conducted by collecting primary data through self-administered questionnaires. The samples used in the research were Gen X and Gen Y investors in the sharia capital market who live in the Jabodetabek area. Hypothesis testing was carried out using the structural equation modeling (SEM) method via smart partial least squares (PLS). The research results show that herding behavior and Islamic financial instruments can have a significant positive effect on investors' decisions to invest in Islamic financial instruments. The disposition effect and Islamic financial instruments can have a positive and significant effect on risk perception. Meanwhile, risk perception is unable to mediate the relationship between all behavioral bias variables and investors' decisions to invest in sharia financial instruments. In general, there is no significant difference between the characteristics of the gen X and Y. In the gen Y, it was found that herding behavior has a positive and significant influence on investor decisions to invest in sharia financial instruments. Furthermore, the disposition effect is a factor that explains the occurrence of risk perception. Both of these findings were not found in the behavior of the gen X. [ABSTRACT FROM AUTHOR]

Purpose The main objective of this study is to examine how different types of biases affect investment choices. Investment choices play a crucial role in an individual's financial well-being and long-term wealth accumulation. However, these decisions are often not purely rational and are significantly influenced by a range of behavioral biases. Behavioral finance, a field that merges psychology with traditional finance, seeks to understand how cognitive and emotional factors affect investors' decision-making processes. Design/methodology/approach This study aims to examine the different types of behavioral biases that affect investment choices. By identifying and analyzing these biases, we can better comprehend their impact on individual and market-level behaviors. Ultimately, this research seeks to provide insights that can help investors recognize their biases and adopt more rational investment strategies, enhancing their potential for financial success. Findings Many investors overestimate their knowledge and ability to predict market movements, leading to excessive trading and increased risk-taking. Studies show that overconfident investors often underperform due to poor decision-making. Investors tend to fear losses more than they value gains, which can result in holding onto losing investments longer than advisable (the disposition effect). This behavior can lead to suboptimal portfolio management. Investors often rely too heavily on initial information or specific price points when making decisions, even if that information becomes irrelevant. This can affect buy/sell decisions and lead to missed opportunities. Originality These biases can lead to suboptimal investment decisions, such as excessive trading, failure to diversify, or holding onto losing investments for too long. Suboptimal outcomes of investment are triggered from the irrationality of investor decisions. The irrationality is due to psychic issues. Limited research was carried out due to the lack of awareness and focus in the behavioral and prospect biases. For improving the awareness and to educate investors a clear study is required for strategic investment planning and optimizing the outcomes of investments. Research limitations/implications Many studies may rely on small or homogenous samples, limiting the generalization of findings across different demographics, such as age, gender, socioeconomic status, and geographical location. Research often depends on self-reported data from investors, which can be influenced by social desirability or lack of self-awareness. This can lead to inaccuracies in understanding the extent of biases. Establishing causal relationships between cognitive biases and investment decisions can be challenging. Many studies can only demonstrate correlation, leaving the underlying mechanisms unclear. Practical implications The present study is framed with two broad sets of dependent and independent variables, two sets of independent variables i.e. Behavioral Biases and Prospect Biases and each of these independent variables are chosen with four biases each and single dependent variable i.e. Before making an investment, researchers must determine whether independent factors have an effect on the dependent variable. Each of these variables is framed with four questions each. The responses are analyzed with SPSS. Social implications The expected optimal return is possible with the awareness in investors where decision making strategies will be improved and psychological errors will be mitigated. This behavior is going to build much value for the bull market, during the bear market, herding can exacerbate sell-offs, due to which a steep decline in a stock price will take place. To avoid the adverse impact of herding investors should make independent decisions based on fundamentals and their own analysis. [ABSTRACT FROM AUTHOR]

Purpose: This study aims to systematically review various behavioral biases that impact an investor's decision-making process. The prime objective of this paper is to thematically explore the behavioral bias literature and propose a comprehensive framework that can elucidate a more reasonable explanation of changes in financial markets and investors' behavior. Design/methodology/approach: Systematic literature review (SLR) methodology is applied to a portfolio of 71 peer-reviewed articles collected from different electronic databases between 2007 and 2021. Content analysis of the extant literature is performed to identify the research themes and existing gaps in the literature. Findings: This research identifies publication trends of the behavioral biases literature and uncovers 24 different biases that impact individual investors' decision-making. Through thematic analysis, an attribute–consequence–impact framework is proposed that explains different biases leading to individual investors' irrationality. The study further proposes directions for future research by applying the theory–characteristics–context–methodology framework. Research limitations/implications: The results of this research will help scholars and practitioners in understanding the existence of various behavioral biases and assist them in identifying potential strategies which can evade the negative effects of these biases. The findings will further help the financial service providers to understand these biases and improve the landscape of financial services. Originality/value: The essence of the current paper is the application of the SLR method on 24 biases in the area of behavioral finance. To the best of the authors' knowledge, this study is the first attempt of its kind which provides a methodical and comprehensive compilation of both cognitive and emotional behavioral biases that affect the individual investor's decision-making. [ABSTRACT FROM AUTHOR]

Purpose: This study aims to conduct a bibliometric analysis to provide a comprehensive picture and identify future research directions to enrich the existing literature on behavioral biases. Design/methodology/approach: The data set comprises 518 articles from the Web of Science database. Performance analysis is used to highlight the significant contributors (authors, institutions, countries and journals) and contributions (highly influential articles) in the field of behavioral biases. In addition, network analysis is used to delve into the conceptual and social structure of the research domain. Findings: The current review has identified four major themes: "Influence of behavioral biases on investment decisions," "Determinants of home bias," "Impact of biases on stock market variables" and "Investors' decision-making under uncertainty." These themes reveal that a majority of studies have focused on equity markets, and research on other asset classes remains underexplored. Research limitations/implications: This study extracted data from a single database (Web of Science) to ensure standardization of results. Consequently, future research could broaden the scope of the bibliometric review by incorporating multiple databases. Originality/value: The novelty of this research is to provide valuable guidance by evaluating the existing literature and advancing the knowledge base on the conceptual and social structure of behavioral biases. [ABSTRACT FROM AUTHOR]

In the realm of investment decisions, the influence of behavioral biases has emerged as a captivating area of exploration. This article embarks on a comprehensive journey through the landscape of behavioral biases in investment choices, delving into their profound impact on financial markets. Contrary to traditional finance theories assuming rationality, a multitude of empirical evidence attests to the pervasive effects of cognitive and emotional biases. Through an extensive literature review, this article elucidates the intricacies of key biases such as overconfidence, loss aversion, anchoring, confirmation bias, herding behavior, disposition effect, framing effects, and regret aversion. By examining the distinct ways these biases distort investors' judgment and decision-making processes, we unveil the often unexpected deviations from rationality. Each bias, rooted in human psychology, can lead to suboptimal investment behaviors, portfolio misalignments, and heightened market volatility. However, recognizing the impact of these biases provides opportunities for transformative insights. As investment professionals, policymakers, and individuals alike comprehend the subtle nuances of behavioral biases, tailored interventions, educational initiatives, and adaptive strategies can be devised to mitigate their adverse effects. This article not only synthesizes the prevailing research but also charts a course for future investigations. The implications of understanding and addressing behavioral biases extend beyond financial realms, offering a bridge between finance and psychology. As interdisciplinary collaboration gains momentum, pathways for future research become evident, beckoning scholars to delve deeper into the uncharted territories of human behavior and its intricate relationship with investment decisions. Through the exploration of these biases and their potential remedies, this article illuminates the evolving landscape of investment decision-making in a world where cognitive fallacies intersect with financial choicest. [ABSTRACT FROM AUTHOR]

The study aims to comprehensively examine the behavioral biases of fund managers by conducting a bibliometric analysis of research papers published during the years 2011–2022 from the Scopus database based on the keywords searched for behavioral biases of fund managers. One hundred and thirty-five articles have been chosen after careful review. This article explains the most cited articles, top authors, leading countries, prolific journals, and important keywords. This study has identified 10 different types of behavioral biases which are summarized in this article. In this review article, we only considered the journal articles excluding conference publications, editorials, and book chapters. This article is based on the existing literature on behavioral biases in investment decision-making processes. This study will be helpful for researchers and academicians to understand the impact of behavioral biases on investment decisions and to reduce it. Finally, this research will provide a roadmap for future research. [ABSTRACT FROM AUTHOR]

This paper offers a detailed analysis of the evolution of financial decision-making theories, focusing on the shift from classical finance to behavioral finance. Classical finance theories, including the Efficient Market Hypothesis and Modern Portfolio Theory, assume that investors behave rationally and that the market is efficient. However, these theories have faced criticisms highlighting the importance of considering irrational behaviors in financial markets. Behavioral finance addresses this gap by integrating psychological insights into financial decision-making. This study systematically reviews the literature on behavioral biases that affect individual investors, identifying fundamental biases and their impact on investment decisions. The analysis emphasizes the role of cognitive limitations and psychological tendencies in shaping market dynamics, influencing asset pricing, investment strategies, and market returns. The research also notes a shift in focus from market-level outcomes to the behavior of individual investors, with an increase in publications. The paper concludes that understanding investors’ biases is crucial for developing effective risk management strategies and investment recommendations, ultimately leading to improved market performance. The findings underscore the growing importance of behavioral finance in explaining investor behavior and market anomalies, highlighting areas for future research in this evolving field.

Understanding the factors that contribute to decreased financial literacy and increased behavioral biases can suggest solutions for risk management and improving decision-making processes. On the other hand, investors make financial decisions based on their levels of financial literacy and behavioral biases. The main goal of this research is to examine the various levels of financial literacy with investors' behavioral biases, and understanding this relationship can help us recommend the best strategies to encourage investors to make better-informed decisions. The research population includes all investors in the Tehran Stock Exchange. A sample, calculated using Cochran's formula, ultimately collected 390 questionnaires manually and online, and necessary pretests were conducted to confirm the validity and reliability. Descriptive statistics, including the demographic characteristics of respondents and the frequency of responses to each question, were performed in this study. Then, structural equation modeling was used to test hypotheses. The results of hypothesis testing showed that professional financial literacy has an inverse effect on overconfidence behavioral bias. It was also found that professional financial literacy has a significantly positive effect on risk tolerance. Finally, it was determined that there is a significant negative relationship between professional financial literacy and self-documentary and risk aversion biases. On the other hand, it was revealed that investors with low levels of financial literacy have a positive relationship with the mentioned behavioral biases. Based on the research results, it can be claimed that as the level of financial literacy decreases among investors, they will become more involved in behavioral biases.

The subject of the study consists of the biasess made when investing in photovoltaic panels. The purpose of the study is to identify biasess associated with investing in renewable energy sources.

Bank financing decisions by small and medium-sized enterprises (SMEs) are crucial to their growth and survival, particularly in emerging economies such as Morocco. This study aims to assess the impact of behavioral biases on these decisions, an area little explored in the existing financial literature. The main objective is to analyze how behavioral biases such as overconfidence, risk aversion, confirmation bias, anchoring, and managerial myopia biases influence bank financing decisions of Moroccan SMEs. The approach adopted is quantitative and uses robust least squares regression to analyze data collected from 167 Moroccan SMEs. The results reveal that overconfidence and anchoring have a significant positive impact on the propensity to take out bank loans, while risk aversion and confirmation bias have a negative effect. Managerial myopia had no significant influence. Control variables such as past financial performance, the length of the banking relationship, and lower risk also positively influence the financing decision.

In business negotiations, negotiators' behavioral biases can lead to irrational negotiation performance and further injure long-term business development. Dao, an ancient Chinese philosophical theory, can provide negotiators with a new perspective on considering reasons and solutions to behavioral biases by analyzing complex situations in business negotiation in a more comprehensive and objective manner. A feature of Dao is Yin Yang, and the essence of Dao is composed of causality and unforeseen events. Causality is not always apparent. According to the Dao framework, the combination of the mix of 'Yin and Yang,' 'broader effects,' the time gap between cause and effect, and unforeseen events in business negotiation can distort negotiators' perspectives and lead to behavioral biases. This article discusses the formation of behavioral biases from the perspective of Dao and how to reduce the biases in business negotiations according to the wisdom of Dao. [ABSTRACT FROM AUTHOR]

Investment behavior is an important player in the economy, especially for emerging economies such as Romania. This study aims to examine further determinants of investment behaviour such as the presence of behavioral biases. By employing the questionnaire technique, the findings show that behavioral biases such as anchoring effect, loss aversion, and risk aversion are present in Romania. Nevertheless, the presence of these biases might determine the investment preferences of households and companies. However, the effects of these heuristics might be mitigated by involving the population in different seminars where the awareness of these biases might be raised. [ABSTRACT FROM AUTHOR]

Copyright of Dilemas Contemporáneos: Educación, Política y Valores is the property of Dilemas Contemporaneos: Educacion, Politica y Valores and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Understanding the factors that contribute to decreased financial literacy and increased behavioral biases can suggest solutions for risk management and improving decision-making processes. On the other hand, investors make financial decisions based on their levels of financial literacy and behavioral biases. The main goal of this research is to examine the various levels of financial literacy with investors' behavioral biases, and understanding this relationship can help us recommend the best strategies to encourage investors to make betterinformed decisions. The research population includes all investors in the Tehran Stock Exchange. A sample, calculated using Cochran's formula, ultimately collected 390 questionnaires manually and online, and necessary pretests were conducted to confirm the validity and reliability. Descriptive statistics, including the demographic characteristics of respondents and the frequency of responses to each question, were performed in this study. Then, structural equation modeling was used to test hypotheses. The results of hypothesis testing showed that professional financial literacy has an inverse effect on overconfidence behavioral bias. It was also found that professional financial literacy has a significantly positive effect on risk tolerance. Finally, it was determined that there is a significant negative relationship between professional financial literacy and self-documentary and risk aversion biases. On the other hand, it was revealed that investors with low levels of financial literacy have a positive relationship with the mentioned behavioral biases. Based on the research results, it can be claimed that as the level of financial literacy decreases among investors, they will become more involved in behavioral biases. [ABSTRACT FROM AUTHOR]

Copyright of Revista Pretexto is the property of Revista Pretexto and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

The subject of the study consists of the biasess made when investing in photovoltaic panels. The purpose of the study is to identify biasess associated with investing in renewable energy sources. Data from a survey conducted among owners of photovoltaic installations in Subcarpathia were used. The literature has identified papers on factors other than behavioral errors affecting investments in photovoltaic panels. Respondents succumbed to the anchoring effect, the error of positive retrospection, information bias, choice-supportive bias and framing bias when deciding to invest in photovoltaic panels. The research conducted makes it possible to confirm that people's behavior while investing is influenced by non-economic factors. Knowledge of behavioral biases can allow one to calibrate financial incentives in order to influence customers more effectively. [ABSTRACT FROM AUTHOR]

The increasing use of social media platforms for investment-related information and advice has raised concerns about the impact of social media on investment choices. In this paper, we investigated the role of behavioral biases and risk perception in investment decisions. Specifically, this paper aims to explore the impact of social media on these factors and their influence on investment decisions. To achieve this aim, we investigated the existing works on the impact of social media on investment decisions, including its influence on behavioral biases and risk perception. We also collected data through an online survey from individual investors who use social media for investment-related information and advice. The survey measured their investment decisions, behavioral biases, risk perception, and the impact of social media on these factors. The valuable insights offered by this paper shed light on how social media affects the decisions made regarding investments and extend our understanding of the role of behavioral biases and risk perception in this context. Our results indicate that social media has a significant impact on the investment-related behaviors and perceptions of individual investors. Specifically, social media can exacerbate the effects of behavioral biases, such as herding and overconfidence bias, and influence risk perception. Moreover, the paper highlights the significance of managing social media use to make rational investment decisions. The paper's results can help individual investors make more informed investment decisions by understanding the impact of social media on their investment-related behaviors and perceptions. Moreover, the paper provides useful information to policymakers and financial regulators to develop guidelines for the responsible use of social media in the investment industry. [ABSTRACT FROM AUTHOR]

Despite many revolutionary asset pricing models developed over the past decades, traditional finance does not explain investor behavior very well. The purpose of this study is to examine the influence of behavioral biases on the investment decisions of investors of Pakistan Stock Exchange. In addition, the moderating influence of investment experience investigated in this study. The findings were reported using a sample of 230 individual investors, who make their own investments, typically through a mutual fund, bank, or internet broker. They make investments to achieve their unique investment objectives, such as saving for retirement, a child’s education, or increasing their overall wealth. The influence of behavioral biases on investment decisions was calculated using regression analysis. Regression results show that beta and t-values are significant and have a significant impact on investment decisions. Regression findings show that Confirmation Bias, Gamblers Fallacy Bias, Negativity Bias, Bandwagon Effect Bias, Loss Aversion Bias, and Overconfidence Bias all have a substantial impact on Investment Decisions. Status quo prejudice and endowment bias have a favorable but minor influence on Investment Decisions. Investment Experience is regarded as an essential component that contributes to successful decision making under risk and uncertainty, however the results of this study show that moderating variables have a minor influence. According to the findings, the moderating variable had no effect on the connection between behavioral biases and investment decisions. And the reason for this is that behavioral biases persist regardless of investing experience.

Research aims: This study aims to analyze the influence of Sharia stock literacy and risk factors on Sharia stock investment decisions with behavioral bias as an intervening variable. Design/Methodology/Approach: The population was investors in East Java Province who invested in Sharia stock. The sample for this research was 500 respondents. The analysis employed was the Structural Equation Model. Research findings: The impact of Sharia stock literacy on both Sharia stock literacy and investor behavioral bias was positive. Sharia stock investment decisions were adversely impacted by risk factors. Additionally, risk factors had a detrimental impact on investor behavioral bias. Behavioral bias yielded a favorable impact on the decision-making process for investing in Sharia-compliant stocks. Through behavioral bias, Sharia stock literacy positively affected Sharia stock investment decisions. Meanwhile, risk factors obtained a negative effect on Sharia stock investment decisions through behavioral bias. Theoretical contribution/Originality: This research contributes to Sharia stock investment decisions and provides empirical evidence of Sharia stock investment decisions concerning Sharia stock literacy, risk factors, and behavioral biases. Practitioner/Policy implication: This research contributes to investors' ability to determine investment decisions in Sharia stock. Research limitation/Implication: The limitation of this research is that independent variables only used two components of Sharia stock investment decision, i.e., Sharia stock literacy and risk factors. Hence, the level of influence of the independent variables on the dependent was small.

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

Panic selling causes long-term losses and hinders investors’ return to the market. It has been explained using prospect theory aspects such as loss and regret aversion. Additionally, overconfidence and overreaction contribute to the disposition effect, leading investors to sell stocks prematurely. However, the framing effect, another disposition effect attribute, has been underexplored in the context of panic selling. This study investigates how the framing effect influences panic selling, particularly during market crises, when investors perceive information differently, depending on its positive or negative framing. Utilizing data from a collaborative survey, we examine Japanese investors’ behavior during the COVID-19 market crisis. Negative framing is negatively associated with complete or partial sale of securities, whereas positive framing has the opposite effect. During market crises, investors presented with negative framing are less likely to panic sell, whereas those presented with positive framing are more prone to it. Other significant factors include gender; men tend to engage more in panic selling. Conversely, higher education, financial literacy, and greater household income and assets are associated with a reduced likelihood of panic selling. These findings underscore the critical role of framing in investor behavior during market crises, providing new insights into the mechanisms underlying panic selling.

Copyright of Revista del Centro de Investigación. Universidad La Salle is the property of Universidad La Salle and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Modern economic theory has been dominated by neoclassical economics since the 1970s. Like any theory, neoclassical economics also has a series of assumptions underpinning it. These assumptions have been criticized and challenged on various grounds in the past several decades. The most serious assumption is the assumption of rational economic agents who aim to maximize their utility by analyzing the costs and benefits of every decision. The presence of "homo economicus" is very rare in our society. In fact, it is practically and psychologically impossible to be rational even most of the times. Empirical and experimental research heavily corroborates this fact. Despite such massive evidence, nearly all economic models and public policies use this distorting assumption in analysis and research. The result has been catastrophic, as can be seen in the Global Financial Crisis of 2008, the Dot-Com bust and numerous financial market crashes before that. Furthermore, the theory of rationality also reduces the effectiveness of government policies in achieving their objectives. Behavioral economics has emerged to address these fallacies of modern neoclassical economics and complement it to improve economic theory, methodologies and forecasting. Behavioral economics has mainly two branches macro theory which aims to design macro-economic models incorporating behavioral concepts and micro theory which explains the various biases that individuals, groups and institutions exhibit in economic and even social decision-making. This research is focused on micro-behavioral economic theory. While a colossal magnitude of research has been done in identifying, testing and explaining the plethora of behavioral biases, there is a dearth of research on systematically reducing these biases. This research aims to fill this gap by conducting research on private and public sector employees of 30 to 40 years age and testing for a significant difference in level of biases revealed between the two groups of employees. The research found that there is a significant level of difference in the rational decision-making behavior of the two groups of employees. It also discusses the applications of the findings and the further scope for research. [ABSTRACT FROM AUTHOR]

Objective: Investigation and behavioral finance analysis of investors and market participants in the nascent field of financial management is one of the topics. Integration can be considered classical economics and sciences of psychology and decision-making. While taking note of the recent developments on the stock exchange, have all the internal and external factors considered in the nuances and micro-sighted because this process of thought, conscience, and a mentally wide variety of people (investors) that has this is a subjective understanding is vital for transparency and a better understanding of the market. Since the 1980s, logical investment hypotheses and efficient markets have been ruined by appearing in behavioural finance literature. The mentioned literature states that some biases cause decision-making problems while trading shares. Tversky and Kahneman, in the 70s, in a series of articles, achieved the development of applications of psychological knowledge in finance and economy. This research gradually became known as behavioral finance in the 90s as a field of financial matters. In the behavioural finance paradigm, the prevalent assumption of viewing a human being as a rational entity who is always satisfied in optimizing his/ her benefits is questionable. Behavioral finance asserts that the attitude of investors to the capital market is a function of investment psychology, ideas and position about risk. Research shows that many micro and macro factors that are measurable and non-measurable affect the behavior of investors. The advocates of Behavioral finance knowledge strongly believe that awareness of psychocognitive" tendencies in the investment realm is essential and requires serious improvement in expanding the scope of studies. However, academicians and professionals who are advocates of classic financial schools do not believe in examining the behavioral aspects of humans and their impact on financial decisions as an independent field of study. Yet, both quantitative and qualitative advancement of experimental studies within this field indicates the importance of research on behaviors in financial markets. Financial literacy is essential in understanding investors' behavior in advanced and emerging stock markets. While previous studies have shown a positive association between improved financial literacy levels and the quality and performance of investors' decisions, the dynamics of this process have not been adequately examined. This study aims to identify influential factors in individual investor's decisionmaking and designing a model in the capital market. Due to the necessity of the subject and the lack of a comprehensive model that shows the factors influencing investors' decision-making in the Iran capital market, the present study developed this model. Method: The methodology of this research is a development, exploratory and qualitative research in terms of result, objective and method, respectively. The research method is based on the strategy of the data foundation theory method with the coding method and paradigm model of Strauss and Corbin. The statistical population of the present study includes university experts and experts in the capital market who have continued to collect information through interviews until saturation; also, a sample of the snowball method has been used based on the opinions of 50 experts and the Strauss and Corbin system approach. The data collection tool was a structured interview, and the focus group continued with the subject matter experts until the theoretical level was reached. Also, using open coding, axial coding and selective coding, the concepts, categories, specifications and dimensions of the categories that were classified into contextual factors, causal conditions, strategies, intervening conditions, and outcomes were extracted and presented and Approved by the expert opinion of the expert. Results: This study provides new insight into the factors affecting decision-making. The research data were analyzed using open, axial and selective coding methods, which is a component of the grounded theory approach with the aid of Maxqda 2018 software; finally, the integrated model of developing investor decision-making is provided, which resulted in the identification of 2 categories of causal conditions, 6 categories of phenomena/context, 9 categories of intervening conditions, 7 categories of action strategies and 7 categories of consequences related to the main phenomenon of research. Conclusion: Based on the research results, individual investors can improve the quality of their decision-making and make more effective investment decisions by implementing the presented strategies and identifying and reducing their mental biases. These strategies include capital market knowledge, consulting with the expert capital market, extensive training in stock exchange concepts, employing specialized and experienced brokers in the capital market, reforming the structural system of the stock exchange, transparency of financial information, expansion of the secondary market, security of investment, Providing the ground for the investor not to leave the capital market. [ABSTRACT FROM AUTHOR]

The purpose of this research is to reclassify behavioral biases in financial markets into two types of historical- and current-oriented ones. In this study, new models were developed for measuring the size of historical-oriented behavioral biases based on the random walk and current-oriented ones based on changes in the P/E ratio. Data for the TEPIX index of Tehran Stock Exchange and the S&P500 index from 05/14/2014 to 06/13/2021 showed that criteria developed for the historical- and current-oriented biases are, respectively, 71 and 15.8 times more for the TEPIX compared to S&P500. So, the results of this study imply that underdeveloped financial markets such as the Tehran Stock Exchange, suffer from large frictions and widespread inefficiencies that should be addressed by policy makers. [ABSTRACT FROM AUTHOR]