Cognitive Bias and the Extraversion Personality Shaping the Behavior of Investors

Frontiers in Psychology

article

Muhammad Ishfaq¹  Mian Sajid Nazir¹  Muhammad Ali Jibran Qamar¹  Muhammad Usman¹ 

[1] Department of Management Sciences, COMSATS University Islamabad, Lahore Campus;Department of Management Sciences, Riphah International University, Faisalabad Campus

关键词: cognitive biases;    investor behavior;    personality traits;    decision making;    risk perception;   

DOI  :  10.3389/fpsyg.2020.556506

学科分类：社会科学、人文和艺术（综合）

来源: Frontiers

【 摘 要 】

The paper examines the direct and indirect effects (via investors’ risk perception) of heuristic biases on investors’ irrational behavior in decision-making. The study also investigates the moderating effect of investors’ extraversion on both the direct and the indirect associations between heuristic biases and irrational decision-making. Based on survey data collected from 247 investors registered in various brokerage houses in Pakistan and the analyses (mediation and moderation) performed using the Process Macro technique (proposed by Hayes, 2017 ) in SPSS, the results of this study reveal that heuristic biases positively affect investors’ irrational decision-making both directly and indirectly via risk perception. The results reveal that extraversion moderates both direct and indirect associations between heuristic biases and investors’ irrational behavior in decision-making. Our findings carry useful practical implications for organizations’ policymakers.

【 授权许可】

CC BY