Abstract
Behavioral finance has gained significant attention as researchers explore how cognitive biases and emotional factors influence individual decision-making and financial markets. Unlike traditional finance, which assumes rational behavior, behavioral finance emphasizes the psychological elements that often lead to irrational investment decisions. This study applied a structured questionnaire to analyze the investment behavior of Mongolian individuals, examining twenty distinct behavioral biases. Using a scoring system and behavioral type identification tests, the study identified five key biases that affect investor decision-making: loss aversion, regret aversion, overconfidence, optimism, and illusory control. The results indicated that loss aversion and regret aversion were the most prominent biases, followed by optimism and illusory control. Overconfidence was found to have a relatively smaller effect on decision-making. These findings suggest that psychological factors play a significant role in shaping investment choices among Mongolian investors.
Published Version
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