PERSONAL INVESTMENT CHOICES AND HUMAN BEHAVIORAL BIASES: RECENT DISCOVERIES IN THE PAKISTAN STOCK EXCHANGE

Abstract

Although the notion of finance has been examined for centuries, the domain of behavioral finance, which investigates individuals' attitudes about money ownership, is relatively recent. Psychological notions suggest that behavioral finance theories can elucidate the impact of emotions on the investment behaviors of individual investors in this setting. Consequently, the objective of this study is to examine the behavioral factors affecting the decisions of individual investors in the PSX. The correlations among the variables of Halo 
Bias, and investment success are examined. This research aims to contribute to the advancement of behavioral finance in Pakistan, given the scarcity of studies on the topic inside the country. The investigation started with ideas derived from existing behavioral 
finance theories. Of the 350 questionnaires emailed to investors of the Pakistan Stock Exchange, 295 were completed and returned. Questionnaires were administered to investors of the Pakistan Stock Exchange to evaluate the hypothesis. The data collected is 
analyzed using Smart PLS software. The literature evaluation indicates that Halo Bias, Framing Bias, and Locus of Control significantly influence individual investment decisions at PSX