Investigating the effects of cognitive biases on investment decision-making: The mediating role of risk perception and robo-advisory services (Case study: Shareholders of companies listed on the Tehran Stock Exchange)

Document Type : Original Article

Authors

Department of Accounting, Imam Reza International University, Mashhad, Iran.

Abstract
Purpose: This study aims to examine the impact of cognitive biases on investment decisions, considering the mediating role of risk perception and the moderating role of robo-advisors among shareholders of companies listed on the Tehran Stock Exchange.
Methodology: This research is applied in terms of purpose and descriptive-survey in terms of methodology. The statistical population consisted of individual investors active in the Tehran Stock Exchange, from whom 335 respondents were selected using purposive sampling. Data were collected through a standardized questionnaire and analyzed using Structural Equation Modeling (SEM) with SPSS and SmartPLS software.
Findings: The results revealed that availability bias, anchoring bias, loss aversion bias, representativeness bias, and overconfidence bias have a positive and significant effect on investment decisions. Furthermore, risk perception plays a significant mediating role in the relationship between overconfidence bias and investment decision-making. In addition, robo-advisors significantly moderate the relationship between overconfidence bias and investment decisions.
Originality/Value: The novelty of this study lies in simultaneously examining the effects of cognitive biases on investment decisions while considering the mediating role of risk perception and the moderating role of robo-advisors. The findings contribute to the behavioral finance literature and provide insights into improving investment decision quality through the application of emerging financial technologies.

Keywords


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