Behavioural Bias of Legal Clients of Stock Exchange Investors in the Banking Industry

Behavioural Bias of Legal Clients of S tock Exchange Inves tors in the Banking Indus try Abs tract12 public and private banks are currently present in the s tock exchange market in the "bank and credit ins titution" group.This s tudy examines the behavioral bias of legal clients of s tock exchange inves tors according to the literature on the behavioral finance.The grounded theory approach has been used to examine the patterns of behavioral bias of legal clients.The research data are the narratives of the participants (legal clients of s tock market inves tors) for 2021.Nineteen people were selected using the purpose-based sampling method, and their narratives were collected through semi-s tructured interviews and coded by MaxQda software and analyzed in three s tages.The findings of the s tudy have shown that ins titutional inves tor behavioral bias is formed on social, emotional and psychological bias platforms, whose drivers are social factors, market, knowledge and experience, and psychological factors.To reduce the impact of behavioral bias, s trategies for portfolio diversification s trategies, inves tment s trategies, inves tment analysis, and the use of information, are used which in turn result in improved capital market efficiency and inves tor success.Furthermore, the s trategies are influenced, on the one hand, by cultural, political and economic factors, and on the other hand by the financial characteris tics of the company, the policy of the company, and the ins titutional characteris tics.