Moderating Role of Information Asymmetry Between Cognitive Biases and Investment Decisions: A Mediating Effect of Risk Perception

• DOI: 10.3389/fpsyg.2022.828956
• Publication Date: 2022-03-28T17:51:18Z
• Authors: Mingming Zhang; Mian Sajid Nazir; Rabia Farooqi; Muhammad Ishfaq
• Keywords: Moderation; Risk Perception; Optimism bias; Moderated mediation; Investment; Investment Decisions

Behavioral Finance is an evolving field that studies how psychological factors affect decision making under uncertainty. This study seeks to find the influence of certain identified behavioral financial biases on decision-making process investors in developing countries. research examines moderating effect Information asymmetry two most important and commonly used cognitive biases, namely Anchoring bias Optimism investigates whether Risk perception mediates relationship between them or not. Quantitative has been conducted using a structured questionnaire for data collection. After completing pilot study, was designed sent via online channels. Data collected from 317 real estate investors. Mediation analysis performed model 4 moderation by applying 15 Process Macros (Hayes, 2017) interaction effect. The investigated both have significant positive investors' decisions also significantly them. Consistency with other suggests proposed conceptual provides insight into are influenced sector enhances understanding sector. recommended policymakers emerging developed current first its kind, focusing investment mediating role asymmetry.