Modeling influential criteria on investors' decisions and performance in financial markets

Understanding the cognitive factors driving individual investor behavior is critical for ensuring sustainable financial market growth. This study investigates the behavioral and cognitive determinants influencing investor decision-making and performance. A mixed-methods approach was employed; initially, a qualitative meta-synthesis generated a conceptual model. Subsequently, quantitative data from ۴۷۹ investors, gathered via simple random sampling, were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM). Findings reveal that financial literacy significantly enhances financial well-being, improves self-control, and mitigates negative impacts of behavioral biases on investment decisions. Furthermore, financial well-being and behavior positively dictate investment choices, which ultimately drive investor performance, though gender differences do not significantly moderate the impact of financial attitudes on behavior. By introducing a comprehensive six-dimensional framework comprising self-control, financial literacy, behavioral biases, financial well-being, behavior, and attitude, this research significantly enriches the behavioral finance literature. Ultimately, fostering financial literacy and inclusive education is vital for optimizing investment strategies and market stability, while promoting transparency facilitates equitable, rational market participation.

کلیدواژه ها:

Investor decision-making ، Financial Markets ، financial performance ، Behavioral financial analysis