Do Behavioral Finance Factors Influence Stock Investment Decisions of Individual Investors? (Evidences from Saudi Stock Market)
Talal Alquraan, Ahmad Alqisie, Amjad Al Shorafa

The main objective of this study is exploring the behavioral finance factors influencing the stock investment decision of individual investors at Saudi Stock Market as one of the vital emerging markets in the Middle East. To conduct the study, (140) questionnaire has been distributed to the participants on randomly basis. Cronbach’s Alpha was used to test the validity of the instrument, in addition Multiple Linear Regression and ANOVA methods were used to test the hypotheses. Results of the study indicated that, behavioral finance factors (Loss Averse, Overconfidence, and Risk Perception) have significant effect on the stock investment decisions of individual investors in Saudi Stock Market, while Herd has insignificant effect. The demographic variables (Gender, Age, Education, Income, and Experience) don’t make any significant differences in the investor decision, except the demographic variable (Education) make significant differences in the investor decision.

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