Abstract:
Abstract
This paper examines the nexus between behavioural bias and investment decisions in a developing country context.
Specifically, this study tests the effect of four behavioural biases (overconfidence, regret, belief, and ―snakebite‖)
on investment decisions. Descriptive statistics and inferential statistics including multiple regression are used to
examine the behavioural biases-investment decisions nexus. The study reveals that the four bias have a significant
positive and robust relationship with investment decision making. The result also shows that the "snakebite" effect
contributes more to the decision making, followed by belief bias then regret bias. Overconfidence bias, however,
contributes the least effect on investment decisions. Our contribution confirms the prospect theory and that
behavioural bias influences investment decisions in the developing country perspective.
Keywords: behavioral Finance, behavioural bias, investment decisions, finance, developing countries
