EXPLORING THE IMPACT OF BEHAVIORAL ANOMALIES IN INVESTMENT DECISION OF INVESTORS OF CAPITAL MARKET IN BANGLADESH: A BEHAVIORAL FINANCE APPROACH

This paper aims to investigate how behavioral anomalies manipulate investors" cogent investment decisions into silly decisions and how investors" behavioral anomalies play an imperative role on investment decisions. Regression method was adopted to analyze and interpret investors" behavioral anomalies. The study highlights on how investors" behavioral anomalies (i.e. anchoring, conservatism, endowment, optimism and hindsight) influence investors" investment decisions. To conduct this study, researchers collected primary data from 120 investors under Dhaka Stock Exchange and Chottogram Stock Exchange using structured questionnaire. Conversely, secondary data were collected from different journal articles and books. Basically logistic regression technique was run using SPSS to analyze behavioral anomalies of investors in decision making. The results showed that behavioral anomalies were leading factors to contribute decision making process of investors in Bangladesh. The findings of this paper would help to understand common behavioral anomalies and their effect in investment decisions for the decision makers and researchers.