COGNITIVE AND EMOTIONAL BEHAVIOURAL FINANCE FACTORS AND INVESTORS’ INVESTMENT DECISION MAKING: EVIDENCE FROM THE NIGERIANCAPITAL MARKET
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Date
2022-12
Journal Title
Journal ISSN
Volume Title
Publisher
International Journal of Management, Social Sciences, Peace and Conflict Studies (IJMSSPCS)
Abstract
This study investigated cognitive and emotional behavioural finance biases and
investors’ investment decision making in the Nigerian capital market. The cognitive
behavioural finance biases examined were overconfidence bias and self-attribution bias;
while the emotional behavioural finance bias were illusion of control bias and regret
bias. The study used the survey-descriptive research design while four-point scale
likert-type questionnaire was employed as the research instrument to elicit responses
from one hundred respondents selected using the simple random sampling method. The
data was analyzedusing the ordinary least squares (OLS) multiple regression method.
Findings from the research showed a positive and significant effect of overconfidence
bias, self-attribution bias, illusion of control bias and regret bias on the investors’
investment decision making in the Nigerian bourse. Illusion of control demonstrated
little effect on investment decision making compared to other biases examined. The
study concluded that both cognitive and emotional behavioural finance biases are key
drivers of investors’ investment decision making in the Nigerian stock market. The
study therefore recommends that investors should frequently form a proper pattern of
judging and observing the behaviour of others while decisions are being made.
Description
Keywords
Overconfidence bias, Self-attribution bias, Illusion of Control bias, Regret bias, Investors’ Decision Making