Purpose

The purpose of this paper is to investigate the effect of heuristic biases, namely, availability bias and representativeness bias on investors’ investment decisions in the Pakistan stock exchange, as well as the moderating role of long-term orientation.

Design/methodology/approach

Using a structured questionnaire, a total of 374 responses have been collected from individual investors trading in PSX. The relationship was tested by applying the partial least square structural equation model using SmartPLS 3.2.2. Further, Henseler and Chin’s (2010) product indicator approach for moderation analysis was applied to the data set.

Findings

The results revealed that availability bias and representativeness bias have a significant and positive influence on the investment decisions of investors. Furthermore, a significant moderating effect of long term orientation on the effect of representativeness bias on investment decision is observed. This suggests that investors’ long term orientation weaken the effect of representativeness bias on investment decision. However, no significant moderating effect was observed for availability bias.

Originality/value

The paper provides novel insights on the role of heuristic-driven biases on the investment decisions of individual investors in the stock market. Particularly, it enhanced the understanding of behavioral aspects of investment decision-making in an emerging market.

中文翻译：

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启发式偏差对巴基斯坦股市投资者投资决策的影响：长期导向的调节作用

目的

本文的目的是研究启发式偏差，即可用性偏差和代表性偏差对巴基斯坦证券交易所投资者投资决策的影响，以及长期导向的调节作用。

设计/方法/方法

使用结构化问卷，共收集了 374 份来自在 PSX 交易的个人投资者的回复。通过使用 SmartPLS 3.2.2 应用偏最小二乘结构方程模型来测试该关系。此外，Henseler 和 Chin (2010) 的适度分析的产品指标方法应用于数据集。

发现

结果表明，可用性偏差和代表性偏差对投资者的投资决策具有显着的正向影响。此外，观察到长期导向对代表性偏差对投资决策的影响具有显着的调节作用。这表明投资者的长期取向削弱了代表性偏差对投资决策的影响。然而，没有观察到可用性偏差的显着调节效应。

原创性/价值

该论文提供了关于启发式驱动偏差对股票市场个人投资者投资决策的作用的新见解。特别是，它增强了对新兴市场投资决策行为方面的理解。