What question did this study set out to answer?

This research aims to explore the impact of behavioural biases on investment decisions, particularly through the lenses of risk perception and financial literacy.

March 25, 2026Discover PsychologyOpen Access

Behavioural biases and investment decisions with mediating role of risk perception and moderating role of financial literacy

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Authors

LMLaraib MalikPir Mehr Ali Shah Arid Agriculture University AQAbdul QuddusInstituto Politécnico de Leiria WWWaqas Ahmad Watto

Discussion

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Implication

Research examines how behavioural biases impact investment decisions in retail investors, highlighting the role of risk perception and financial literacy.

Key Points

This research aims to explore the impact of behavioural biases on investment decisions, particularly through the lenses of risk perception and financial literacy.
Developed a comprehensive behavioural finance model
Collected primary data using structured questionnaires distributed online
Employed purposive sampling to gather 280 valid responses from active retail investors on the PSX
Analyzed data using Partial Least Squares Structural Equation Modelling (PLS-SEM)
Behavioural biases significantly influence investment decisions directly and through risk perception
Financial literacy moderates the relationship, reducing the negative effects of behavioural biases on investment decisions
Findings emphasize the importance of financial education in mitigating biased investment behaviours

Cite This Study

Malik et al. (2026) studied this question.

synapsesocial.com/papers/69c37b33b34aaaeb1a67d6c1 https://doi.org/10.1007/s44202-026-00669-9

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March 25, 2026Discover PsychologyOpen Access

Behavioural biases and investment decisions with mediating role of risk perception and moderating role of financial literacy

View Full Paper

Ask AI

Bookmark

Authors

LMLaraib MalikPir Mehr Ali Shah Arid Agriculture University AQAbdul QuddusInstituto Politécnico de Leiria WWWaqas Ahmad Watto

Discussion

Member takes

Implication

Research examines how behavioural biases impact investment decisions in retail investors, highlighting the role of risk perception and financial literacy.

Key Points

This research aims to explore the impact of behavioural biases on investment decisions, particularly through the lenses of risk perception and financial literacy.
Developed a comprehensive behavioural finance model
Collected primary data using structured questionnaires distributed online
Employed purposive sampling to gather 280 valid responses from active retail investors on the PSX
Analyzed data using Partial Least Squares Structural Equation Modelling (PLS-SEM)
Behavioural biases significantly influence investment decisions directly and through risk perception
Financial literacy moderates the relationship, reducing the negative effects of behavioural biases on investment decisions
Findings emphasize the importance of financial education in mitigating biased investment behaviours

Cite This Study

Malik et al. (2026) studied this question.

synapsesocial.com/papers/69c37b33b34aaaeb1a67d6c1 https://doi.org/10.1007/s44202-026-00669-9

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