Psychological Biases, Personality Traits, and Investment Behavior: The Role of Financial Information

Abstract

This research examines the influence of psychological biases and dispositional traits on individual investment behavior within the framework of behavioral finance. Traditional financial theory posits that investors process information rationally; however, behavioral research demonstrates that cognitive and affective factors systematically shape financial decision-making. Drawing on survey-based evidence, the study investigates how investors’ psychological characteristics affect their investment behavior in contexts where accounting-related decisions rely primarily on accounting-derived information. Data were collected from 410 participants via online questionnaires and analyzed using regression analysis. The findings reveal that overconfidence, herding behavior, risk tolerance, and self-monitoring significantly and positively impact Turkish investors’ investment behavior.