Title: Impact of behavioural biases on investor's decision

Authors: Sunny Saha; Md. Humayun Kabir

Addresses: Department of Business Administration, East West University, Dhaka, Bangladesh ' Department of Business Administration, East West University, Dhaka, Bangladesh

Abstract: This paper examines the issue of whether or not Bangladeshi investors have behavioural biases when making investing decisions. For the first time, a sample of Bangladeshi investors has been chosen to study the influence of behavioural biases on investment choices. Based on other studies in the field, we carefully selected seven behavioural biases, including overconfidence, conservatism, herding, availability, mental accounting, anchoring, and gambler's fallacy. To investigate the effects of biases on investors, we used a sample of 147 Bangladeshi investors who traded on the Bangladesh stock exchange. We used IBM Amos 21 and SPSS 21 to analyse the impact of behavioural biases on investors' assessments. According to the study, only overconfidence and the gambler's fallacy affect investors' decision-making. We believe the researchers will find this study to help assess how much their biased stock market decision-making has reduced rational investing.

Keywords: behavioural finance; behavioural bias; investor's decision making; bangladesh stock exchange; rational investing; Bangladeshi investors; contemporary finance.

DOI: 10.1504/GBER.2025.143086

Global Business and Economics Review, 2025 Vol.32 No.1, pp.16 - 30

Received: 12 Mar 2023
Accepted: 01 Aug 2023
Published online: 03 Dec 2024 *

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