Drivers and Consequences of Behavioral Bias and Strategies for Reducing the Effects of Bias in Institutional Investors

the Effects of Bias in Ins titutional Inves tors Abs tractMarket disorder and irrational behavior of inves tors escalate s tock market volatility.This research has been conducted to identify drivers and consequences of behavioral bias and s trategies for reducing the effects of bias behavioral in ins titutional inves tors by implementing the correlation research method.The evidence collected from a possible s tatis tical sample of 607 legal inves tors has been analyzed using a ques tionnaire, confirmatory factor analysis, and s tructural equation modeling.The results have shown that increasing the causes and bases of bias (social and psychological factors, knowledge and experience, and market) leads to an increase in behavioral biases and the use of behavioral biases s trategy in inves tors' decision-making.Also, the s trategy to reduce behavioral biases is influenced by behavioral biases, background factors, and intervening factors.In the end, the success of inves tors is significantly influenced by behavioral bias reduction s trategy, the causes of the behavior biases, and the behavioral biases.Evidence has shown that the inves tigated model has predictive validity for inves tment performance, and ins titutional inves tors can benefit from this s tudy by unders tanding the influence of behavioral factors on inves tors' decisions.