Do Financial Knowledge Moderates Loss Aversion Bias in Investment Decision?(A Short & Long Run Analysis from Pakistan Stock Market)

This study investigated the Loss Aversion bias effect on investment decision short and long term under the moderating role of financial knowledge in the Pakistan stock market both in short and long run collected data from a sample of 160 investors. In the methodology econometric techniques, i.e. Reliability analysis, statistics of demographic variables, descriptive, correlation analysis, and regression analysis has been applied. The results reveals that Loss Aversion bias negatively affects short and long term investment decisions. The increase in financial knowledge assures trading investors to take better investment decisions by reducing Loss Aversion bias. The study concluded that policymakers need to clearly understand and control market players' cognitive errors by developing effective policies to guarantee low stock volatility. The study also advises financial advisors, strategists, and banks better understand their investors’ psychology during efficient portfolio management.
Overall Rating

0

5 Star
(0)
4 Star
(0)
3 Star
(0)
2 Star
(0)
1 Star
(0)
APA

Arif, M. (2023). Do Financial Knowledge Moderates Loss Aversion Bias in Investment Decision?(A Short & Long Run Analysis from Pakistan Stock Market). Afribary. Retrieved from https://tracking.afribary.com/works/40-awoesha-rahat

MLA 8th

Arif, Mashal "Do Financial Knowledge Moderates Loss Aversion Bias in Investment Decision?(A Short & Long Run Analysis from Pakistan Stock Market)" Afribary. Afribary, 14 Jul. 2023, https://tracking.afribary.com/works/40-awoesha-rahat. Accessed 26 Dec. 2024.

MLA7

Arif, Mashal . "Do Financial Knowledge Moderates Loss Aversion Bias in Investment Decision?(A Short & Long Run Analysis from Pakistan Stock Market)". Afribary, Afribary, 14 Jul. 2023. Web. 26 Dec. 2024. < https://tracking.afribary.com/works/40-awoesha-rahat >.

Chicago

Arif, Mashal . "Do Financial Knowledge Moderates Loss Aversion Bias in Investment Decision?(A Short & Long Run Analysis from Pakistan Stock Market)" Afribary (2023). Accessed December 26, 2024. https://tracking.afribary.com/works/40-awoesha-rahat