Abstract
This paper examines the nexus between behavioural bias and investment decisions in a developing country context. Specifically, this study tests the effect of four behavioural biases (overconfidence, regret, belief, and “snakebite”) on investment decisions. Descriptive statistics and inferential statistics including multiple regression are used to examine the behavioural biases-investment decisions nexus. The study reveals that the four bias have a significant positive and robust relationship with investment decision making. The result also shows that the "snakebite" effect contributes more to the decision making, followed by belief bias then regret bias. Overconfidence bias, however, contributes the least effect on investment decisions. Our contribution confirms the prospect theory and that behavioural bias influences investment decisions in the developing country perspective. 
Highlights
Investors for many years depends on the modern financial theories and expert opinions in making investment decisions to maximize returns either in the short term or long term
The implication is that the four bias contribute 99.7% to decision in investing in stocks, other variables which are not considered in this study accounted for 0.3% of investment decision
99.7% variation in investment decisions of individual investors is explained by behavioural biases
Summary
Investors for many years depends on the modern financial theories and expert opinions in making investment decisions to maximize returns either in the short term or long term. Finance theories and models such as Capital Structure (Modigliani & Miller, 1958); Capital Asset Pricing Model (Sharpe, 1964; Lintner, 1965, and Mossin, 1966); Efficient Market Hypothesis (Fama, 1970); and Options Pricing model (Black and Scholes, 1973) postulated that investors are rational, and they base on available information in making decisions. The collapse of the deep-rooted institution such as Long Term Capital Management companies (LTCM) due to stock market changes indicates that something was wrong with modern financial theories (Prosad et al, 2015). The collapse of the deep-rooted institution such as Long Term Capital Management companies (LTCM) due to stock market changes indicates that something was wrong with modern financial theories (Prosad et al, 2015). Nofsinger and Varma (2014) added that these anomalies delineate that something was lacking in the contemporary theory of rationality
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