Thursday, 11 August 2022

Influence of Behavioral Biases on Investment Decision Making with Moderating Role of Financial Literacy and Risk Attitude: A Study Based on Colombo Stock Exchange


Ahmad, Z., Ibrahim, H., and Tuyon, J. (2017), “Institutional investor behavioral biases: syntheses of theory and evidence”, Management Research Review, Vol. 40 No. 5, pp. 578-603.

Alsemgeest, L. (2015), “Arguments for and against financial literacy education: where to go from here?”, International Journal of Consumer Studies, Vol. 39, pp. 155-161.

Baddeley, M., Burke, C., Schultz, W., & Tobler, P. (2010). Impacts of Personality on Herding in Financial Decision-Making. 36.

Balagobei, S. (2019). Impact Of Investor’s Behavior on Investment Decision Making: A Survey on Colombo Stock Exchange, Sri Lanka. 12

Bashir, D. T., Azam, S. N., Butt, S. A. A., Javed, S. A., & Tanvir, S. A. (2013). Are Behavioral Biases Influenced by Demographic Characteristics & Personality Traits? Evidence From Pakistan. 17.

Bashir, D. T., Azam, S. N., Butt, S. A. A., Javed, S. A., & Tanvir, S. A. (2013). Are Behavioral Biases Influenced by Demographic Characteristics & Personality Traits? Evidence From Pakistan. 17.

Bakar, S. And Yi, A.N.C. (2016), “The Impact of Psychological Factors on Investors’ Decision Making in Malaysian Stock Market: A Case of Klang Valley and Pahang”, Procedia Economics and Finance.

Baker, H. & Ridder, Adri & De Vries, Annalien. (2018). Stockholdings Of First-Time and More Experienced Investors. Review Of Behavioral Finance. 10. 00-00. 10.1108/Rbf-11-2016-0077.

Bazerman, M. Judgment in Managerial Decision-Making. London: Wiley, 1998.

Bikhchandani, S. And Sharma, S. (2001), “Herd Behavior in Financial Markets”, Imf Staff Papers, Vol. 47 No. 3.

Chaffai, Mustapha & Medhioub, Imed. (2014). Behavioral Finance: An Empirical Study of The Tunisian Stock Market. International Journal of Economics and Financial Issues. 4. 527-538.

Chang, Y. Y., Faff, R., And Hwang, C.-Y. (2009). Does Investor Sentiment Impact Global Equity Markets? In Milan Efma Meetings.

Christie, W. G., & Huang, R. D. (1995). Following The Pied Piper: Do Individual Returns Herd Around the Market? Financial Analysts Journal, 51(4), 31–37.

Daniel, K., Hirshleifer, D. & Subrahmanyam, A. (1998). Investor Psychology and Security Market Under-and Overreactions, The Journal of Finance, Vol. 53, No. 6, Pp. 1839-85.

De Clercq, B., & Venter, J. M. P. (2009). Factors Influencing a Prospective Chartered Accountant’s Level of Financial Literacy: An Exploratory Study. Meditari Accountancy Research, 17(2), 47–60.

Dhar, R. And Zhu, N. (2006), “Up Close and Personal: Investor Sophistication and The Disposition Effect”, Management Science, Vol. 52 No. 5, Pp. 726-740.

Fama, E. (1969). Efficient Capital Markets: A Review of Theory and Empirical Work. The Journal of Finance, Vol. 25(2), 36.

Fellner, G. And Maciejovsky, B. (2007), “Risk Attitude and Market Behavior: Evidence from Experimental Asset Market”, Journal of Economic Psychology, Vol. 28 No. 3, Pp. 338-350.

Fernández, B., Garcia‐Merino, T., Mayoral, R., Santos, V., & Vallelado, E. (2011). Herding, Information Uncertainty and Investors’ Cognitive Profile. Qualitative Research in Financial Markets, 3(1), 7–33.

Gunathilaka, C. (2014). Factors Influencing Stock Selection Decision the Case of Retail Investors in Colombo Stock Exchange.

Hirshleifer, D., Low, A. And Teoh, S.H. (2012), “Are Overconfident CEOS Better Innovators?”, The Journal of Finance, Vol. 67 No. 4, Pp. 1457-1498.

Hogarth, R.M. Judgment and Choice. Chichester: Wiley, 1987.

Humra, Y. (N.D.). Behavioral Finance: An Introduction to The Principles Governing Investor Behavior in Stock Markets. Behavioral Finance, 8.

Hunter, K. And Kemp, S. (2004), “The Personality of E-Commerce Investors”, Journal of Economic Psychology, Vol. 25 No. 4, Pp. 529-537.

Hwang, S. And Salmon, M. (2004), “Market Stress and Herding”, Journal of Empirical Finance, Vol. 11 No. 4, Pp. 585-616.

Kannadhasan, M. And Nandagopal, R. (2010a), “Influence of Decision Makers’ Characteristics on Risk Analysis in Strategic Investment Decisions”, Journal of Modern Accounting and Auditing, Vol. 6 No. 4, Pp. 38-44.

Kahneman, Daniel, Jack L. Knetsch, And Richard H. Thaler (1991). "Anomalies: The Endowment Effect, Loss Aversion, And Status Quo Bias." Journal Of Economic Perspectives, 5 (1): 193-206.

Kengatharan, L. And Kengatharan, N. (2014), “The Influence of Behavioral Factors in Making Investment Decisions and Performance: Study on Investors of Colombo Stock Exchange, Sri Lanka”, Asian Journal of Finance & Accounting, Vol. 6 No. 1, P. 1.

Kirchler, E. And Maciejovsky, B. (2002), “Simultaneous Over-and Under Confidence: Evidence from Experimental Asset Markets”, Journal of Risk and Uncertainty, Vol. 25 No. 1, Pp. 65-85.

Kumar, Satish & Goyal, Nisha. (2015). Behavioural biases in investment decision making – a systematic literature review. Qualitative Research in Financial Markets. 7. 88-108. 10.1108/QRFM-07-2014-0022.

Linet, H.-W. (2011). Elucidating Rational Investment Decisions and Behavioral Biases: Evidence from The Taiwanese Stock Market. African Journal of Business Management, 1630-1641.

Lusardi, A. And Mitchell, O.S. (2011), “Financial Literacy Around the World: An Overview”, Journal of Pension Economics and Finance, Vol. 10 No. 4, Pp. 497-508.

Markowitz, H. (1952). Portfolio Selection. Journal Of Finance.

Metawa, N., Hassan, M. K., Metawa, S., & Safa, M. F. (2019). Impact Of Behavioral Factors on Investors’ Financial Decisions: Case of The Egyptian Stock Market. International Journal of Islamic and Middle Eastern Finance and Management, 12(1), 30–55.

Odean, T. (1999). Do Investors Trade Too Much? The American Economic Review, Vol. 89, No. 5, Pp. 1279-1299.

Odean, T. (2002), “Volume, Volatility, Price and Profit When All Traders Are Above Average”, The Journal of Finance.

Oecd, 2015. (2009). Framework For the Development of Financial Literacy Baseline Surveys: A First International Comparative Analysis (Oecd Working Papers on Finance, Insurance and Private Pensions No. 1; Vol. 1).

Pak, O., & Mahmood, M. (2015). Impact Of Personality on Risk Tolerance and Investment Decisions: A Study on Potential Investors of Kazakhstan. International Journal of Commerce and Management, 25(4), 370–384.

Pompian, M.M. (2006), Behavioural Finance and Wealth Management: Building Optimal Portfolios That Account for Investor Biases. Hoboken, New Jersey, Usa: John Wiley & Sons, Inc.

Potrich, A. C. G., & Vieira, K. M. (2018). Demystifying Financial Literacy: A Behavioral Perspective Analysis. Management Research Review, 41(9), 1047–1068.

Prosad, Jaya M, Kapoor, S., & Sengupta, J. (2012). An Examination of Herd Behavior: An Empirical Study on Indian Equity Market. 5.

Raut, R. K. (2020). Past Behaviour, Financial Literacy and Investment Decision-Making Process of Individual Investors. International Journal of Emerging Markets, 15(6), 1243–1263.

Rutherford, L. And Devaney, S.A. (2009), “Utilizing the Theory of Planned Behaviour to Understand Convenience Use of Credit Cards”, Journal of Financial Counseling and Planning, Vol. 719, Pp. 48-63.

Russo, E., Schoemaker, P. (1992). “Managing Overconfidence”, Sloan Management Review, No. 33, Pp. 7-17

Scharfstein, D.S. and Stein, J.C. (1990) Herd Behavior and Investment. The American Economic Review, 80, 465-479.

Sethi-Iyengar, Sheena & Jiang, Wei & Huberman, Gur. (2004). How Much Choice Is Too Much? Contributions to 401(K) Retirement Plans. Pension Design and Structure: New Lessons from Behavioral Finance. 10.1093/0199273391.003.0005

Sewwangdi, W. G. T. (2016). Herding In Colombo Stock Exchange. 16.

Shah, S. Z. A., Ahmad, M., & Mahmood, F. (2018). Heuristic Biases in Investment Decision-Making and Perceived Market Efficiency: A Survey at The Pakistan Stock Exchange. Qualitative Research in Financial Markets, 10(1), 85–110.

Shantha, K. V. A. (2019). The Evolution of Herd Behavior: Will Herding Disappear Over Time? Studies In Economics and Finance, 36(4), 637–661.

Shefrin, Hersh. (2010). Behavioralizing Finance. Foundations And Trends in Finance. 4.

Spyrou, S. (2013). Herding In Financial Markets: A Review of The Literature. Review Of Behavioural Finance, 5(2), 175–194.

Tauni, M. Z., Rao, Z.-R., Fang, H., Mirza, S. S., Memon, Z. A., & Jebran, K. (2017). Do Investor’s Big Five Personality Traits Influence the Association Between Information Acquisition and Stock Trading Behavior? China Finance Review International, 7(4), 450–477.

Victor Ricciardi and Helen K. Simon, (2000). “Betjournal”. The Business, Education and Technology Journal, Vol. 2 No. 2

Wang, D. (N.D.). Herb Behavior Towards the Market Index: Evidence From 21 Financial Markets.

Weerasekara, C. (2018). Antecedents And Consequences of Financial Literacy: A Case of Retail Investors at The Colombo Stock Exchange in Sri Lanka. Vistas Journal Volume 11, Issue 1, December 2018, 11(1), 20.                                                                                      

Yates, J. F., Lee, J.-W., And Bush, J. G. (1997). General Knowledge Overconfidence: Cross-National Variations, Response Style, And Reality. Organizational Behavior and Human Decision Processes, 70(2):87–94.

Zahera, S. A., & Bansal, R. (2018). Do Investors Exhibit Behavioral Biases in Investment Decision Making? A Systematic Review. Qualitative Research in Financial Markets, 00–00.