Published Paper Details:

In this study, the association demographic variables and the behavioural biases of individual investors is analyzed. Some behavioural biases such as the heuristic bias, overconfidence bias, herding bias, confirmation bias and framing bias are important factors affecting investment decision making. The study will explore if there is a statistically significant relationship between these behavioural biases and demographic factors (occupation, annual income). A quantitative research design was used and a structured questionnaire on a five-point Likert scale was used to draw primary data from 402 respondents. The collected data were analyzed with the use of Statistical Package for the Social Sciences (SPSS) and One-Way Analysis of Variance (ANOVA) was used for testing the association between the demographic variables and behavioural biases. Results of the study indicate that Occupation and annual income have different degrees of relationships with the different behavioural biases. There was significant effect among income groups in the cases of heuristic bias, overconfidence bias, and herding bias, and Occupation was significantly related to heuristic bias, overconfidence bias, herding bias, confirmation bias and framing bias. The findings reveal that investors' psychological tendencies and decision-making processes are greatly influenced by their demographic characteristics. The study adds to the behavioural finance literature by offering empirical evidence of the impact of socio-economic factors on behavioural biases.