Purpose

This paper attempts to identify the biases in decision-making of individual investors. The paper aims to develop and validate a higher-order behavioral biases scale.

Design/methodology/approach

Scale development is done by identifying the relevant items of the scale through existing literature and then, adding new items for some biases. In phase 1, using a structured questionnaire, data was collected from 274 investors who invest in financial markets. The major dimensions of the scale have been pruned by using exploratory factor analysis administered on data collected in phase 1. Higher-order CFA is used to analyze the data and to validate the scale on another set of data (collected in phase 2) containing 576 investors.

Findings

The study reveals that the scale for measuring behavioral biases has many dimensions. It has two second-order factors and 13 zero-order constructs. Two second-order constructs have been modeled on the basis of cause of errors in investment decision-making, that is, biases caused due to cognition, biases caused due to emotions.

Originality/value

Behavioral biases are yet to receive a due attention, especially, in the Indian context. The present research is focusing on providing an empirically tested scale to test the behavioral biases. Some of the biases, which have been analyzed using secondary data in previous studies, have been tested with the help of statements in this study.

中文翻译：

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行为偏差量表的开发和验证：SEM 方法

目的

本文试图找出个人投资者决策中的偏见。本文旨在开发和验证高阶行为偏差量表。

设计/方法/方法

量表开发是通过通过现有文献确定量表的相关项目，然后为某些偏差添加新项目来完成的。在第一阶段，使用结构化问卷，从 274 名投资金融市场的投资者那里收集数据。通过对第 1 阶段收集的数据进行探索性因素分析，已对量表的主要维度进行了修剪。高阶 CFA 用于分析数据并在包含 576 的另一组数据（在第 2 阶段收集）上验证量表投资者。

发现

研究表明，衡量行为偏见的量表有很多维度。它有两个二阶因子和 13 个零阶结构。根据投资决策失误的原因，分别建模了两个二阶构念，即认知导致的偏差、情绪导致的偏差。

原创性/价值

行为偏见尚未得到应有的关注，尤其是在印度背景下。本研究的重点是提供一个经过经验测试的量表来测试行为偏差。一些偏倚已在先前研究中使用二手数据进行分析，并已在本研究中的陈述的帮助下进行了测试。