The Behavioral Biases of Investors on Investment Decisions in Laguna: The Mediating Role of Risk Perception
Year: 2025
Type: conference-paper
Study design: Observational Study
Abstract: This study explores how behavioral biases influence individual stock investors' decision-making, focusing on Loss Aversion, Narrow Framing, Mental Accounting, and the Disposition Effect. The researchers surveyed utilizing the responses of 115 investors from GInvest, Maya, and COL Financials in Laguna. The research used a quantitative, causal approach to examine the direct impact of these biases and the mediating role of Risk Perception. The findings showed that Loss Aversion, Narrow Framing, and Mental Accounting significantly affect investment decisions, whereas the Disposition Effect does not. Additionally, Narrow Framing and Mental Accounting directly influence Risk Perception, but only Narrow Framing is mediated by it. The study suggests that future research should investigate additional biases, expand the sample size, and consider other investment platforms.
Institution: Malayan Colleges Laguna
Language: English
Subfield: Finance
Domain: Social Sciences
Open Access status: gold
OpenAlex ID: W7127312239