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A Study of Investor Behaviour based on Behavior Economics

Xiaoju Dong


Investment decision-making is a complex process influenced by various factors. This study explores the relationships between cognitive biases, investor behavior, financial literacy, regulatory policies, and technology in investment decision-making. A quantitative survey method was used to collect data from 30 participants of varying demographics and investment experience. The data was analyzed using correlation and regression analysis to determine the relationships between the variables. The findings of this study indicate a significant negative correlation between cognitive biases and investor behavior. Additionally, there is a positive correlation between financial literacy and investor behavior, and between financial literacy and technology. The results also show that regulatory policies and technology have a positive relationship. The regression analysis suggests that cognitive biases and financial literacy are significant predictors of investor behavior. The implications of these findings are significant for both investors and financial advisors. By understanding the relationships between these variables, investors can make more informed decisions and financial advisors can develop strategies to mitigate the impact of cognitive biases on investment decision-making.


Financial Literacy; Investment Behavior; Regression Analysis

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DOI: http://dx.doi.org/10.18686/fm.v8i5.10237