Abstract:
The study has aimed to exam me the effects of herding behavior, overconfidence, representative bias, anchoring, and risk aversion on investment decision making. The data has been collected in a quantifiable manner as the researcher has targeted stock market investors and gathered 219 sample responses. The data analysis has been performed based on the regression analysis technique. The results have showed that herding behavior has a negative and significant effect on investment decision making. The overconfidence has a negative and significant effect on investment decision making. The representative bias has a negative but insignificant effect on investment decision making. The anchoring has a negative but insignificant effect on investment decision making. The risk aversion has a negative and significant effect on investment decision making. Additionally, The objective of the study is to explore the factors which affect investment making decisions. The managers should be hyper aware while investing a huge amount as it would turn into huge losses as well. The managers should not go with the herding behavior every time as it can be misleading sometimes. The investors are implied to do the research and do data analysis before investing anywhere. The investors must not follow the majority because sometimes it might lead the managers astray.
