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Behavioral Biases of Individual Investors and Financial Literacy Relationship: The Case of Samsun Province

Year 2021, Volume: 5 Issue: 2, 315 - 341, 20.12.2021
https://doi.org/10.33399/biibfad.901371

Abstract

In this study, the relationship between the financial literacy levels of individual stock investors and the psychological factors that affect their investment decisions are investigated. In this context, financial literacy criterion was divided into three categories as basic, intermediate and advanced, and their relationship with overconfidence, herding behavior and loss aversion bias was examined. In the study, individual investors who have accounts with brokerage houses in Samsun province and who have active stock transactions were targeted, and a questionnaire was applied to a total of 205 participants within the scope of the study. The Structural Equation Model was used in the analysis of the research data. According to the results of the study, it was determined that all financial literacy levels negatively affect on herding behavior. In addition, while advanced financial literacy has a positive effect on overconfidence, it has a negative effect on loss aversion bias. In addition, no significant relationship was found for loss aversion and overconfidence bias in investors with basic and intermediate levels of financial literacy.

References

  • Altunışık, R., Coşkun, R., Bayraktaroğlu, S. & Yıldırım, E. (2007). Sosyal bilimlerde araştırma yöntemleri: SPSS uygulamalı: Sakarya yayıncılık.
  • Ateş, S. (2014). Finansal okuryazarlık ve davranışsal önyargılar: Bireysel hisse senedi yatırımcısı üzerine ampirik bir çalışma. (Yüksek Lisans Yüksek Lisans Tezi). Galatasaray Üniversitesi İstanbul.
  • Atkinson, A., & Messy, A. (2010). Assessing financial literacy in countries and OECD pilot exercise. Center for Research on Pensions Welfare Policies.
  • Balcilar, M., & Demirer, R. (2015). Effect of global shocks and volatility on herd behavior in an emerging market: Evidence from Borsa Istanbul. Emerging Markets Finance and Trade, 51(1), 140-159.
  • Banerjee, A.V. (1992). A simple model of herd behavior. The Quarterly Journal of Economics, 107(3), 797-817.
  • Barber, B.M., & Odean, T. (1999). The courage of misguided convictions. Financial Analysts Journal, 55(6), 41-55.
  • Bayrak, O. ( 2012). Davranışal finans. . TSPAKB Sermaye Piyasasında Gündem Dergisi(120), 6-17.
  • Benartzi, S., & Thaler, R.H. (1995). Myopic loss aversion and the equity premium puzzle. The Quarterly Journal of Economics, 110(1), 73-92.
  • Bikhchandani, S., Hirshleifer, D., & Welch, I. (1992). A theory of fads, fashion, custom, and cultural change as informational cascades. Journal of political Economy, 100(5), 992-1026.
  • Bikhchandani, S., Hirshleifer, D., & Welch, I. (1998). Learning from the behavior of others: Conformity, fads, and informational cascades. Journal of economic perspectives, 12(3), 151-170.
  • Bikhchandani, S., & Sharma, S. (2001). Herd behavior in stock market. IMF Staff Papers, 47(3), 279-310.
  • Byrne, A., & Utkus, S. P. (2013). Behavioural finance. Understanding how the mind can help or hinder investment success, UK. Retrieved March, 20, 2019.
  • Chen, H., & Volpe, R.P. (1998). An analysis of personal financial literacy among college students. Financial services review, 7(2), 107-128.
  • Chiang, T.C., & Zheng, D. (2010). An empirical analysis of herd behavior in global stock markets. Journal of Banking & Finance, 34(8), 1911-1921.
  • Chuang, W.I., & Lee, B.S. (2006). An empirical evaluation of the overconfidence hypothesis. Journal of Banking & Finance, 30(9), 2489-2515.
  • Cipriani, M., & Guarino, A. (2009). Herd behavior in financial markets: an experiment with financial market professionals. Journal of the European Economic Association, 7(1), 206-233.
  • Cortina, J.M. (1993). What is coefficient alpha? An examination of theory and applications. Journal of applied psychology, 78(1), 98.
  • Daniel, K., Hirshleifer, D., & Subrahmanyam, A. (1998). Investor psychology and security market under‐and overreactions. The journal of finance, 53(6), 1839-1885.
  • Doğan, M. (2019). Türkiye Finansal Okuryazarlık Araştırması 1. Third Sector Social Economic Review, 54(4), 1602-1620.
  • Erdinç, Y. (2004). Yatırımcı ve teknik analiz sorgulanıyor: Siyasal Kitabevi.
  • Faikoğlu, S. (2012). İMKB’ de işlem yapan bireysel yatırımcıların davranışsal finans açısından incelenmesi. ( Doktora Doktora Tezi). Sakarya Üniversitesi, Sakarya.
  • Gervais, S., & Odean, T. (2001). Learning to be overconfident. The review of financial studies, 14(1), 1-27.
  • Gökmen, H. (2012). Finansal okuryazarlık İstanbul: Hiperlink Yayınları.
  • Gürbüz, S. (2019). Amos ile yapısal eşitlik modellemesi. Ankara: Seçkin Yayıncılık.
  • İçke, B. (2017). Finansal Okuryazarlık. İstanbul: Beta Yayıncılık.
  • Kahneman, D. (2003). A psychological perspective on economics. American Economic Review, 93(2), 162-168.
  • Kahneman, D., & Tversky, A. (1979). Prospect Theory: An Analysis of Decision under Risk. Econometrica, 47(2), 263-292.
  • Kengatharan, L., & Kengatharan, N. (2014). The influence of behavioral factors in making investment decisions and performance: Study on investors of Colombo Stock Exchange, Sri Lanka. Asian Journal of Finance & Accounting, 6(1), 1.
  • Kılınç, N., & Kılıç, Y. (2018). Finansal okuryazarlık ve davranışsal finans ilişkisi: yatırım profesyonellerine yönelik bir araştırma Paper presented at the Uluslararası Katılımlı 22. Finans Sempozyumu Mersin.
  • Kline, R.B. (2015). Principles and practice of structural equation modeling: Guilford publications.
  • Le Luong, P., & Thi Thu Ha, D. (2011). Behavioral factors influencing individual investors´ decision-making and performance.: A survey at the Ho Chi Minh Stock Exchange. In.
  • Merkle, C. (2017). Financial overconfidence over time: Foresight, hindsight, and insight of investors. Journal of Banking & Finance, 84, 68-87.
  • OECD. (2016). OECD/INFE “international survey of adult financial literacy competencies". Retrieved from https://www.oecd.org/finance/financial-education/oecd-infe-survey-adult-financial-literacy-competencies.htm
  • Robb, C.A., & Woodyard, A. S. (2011). Financial knowledge and best practice behavior. Journal of Financial Counseling and Planning, 22(1), 60-70.
  • Satoğlu, S. (2014). Bireysel yatırımcıları koruma aracı olarak finansal okuryazarlık ve Türkiye uygulaması. (Doktora Tezi). Marmara Üniversitesi İstanbul.
  • Schmukler, S.L. (2004). Benefits and risks of financial globalization: challenges for developing countries. Federal Reserve Bank of Atlanta Economic Review(2), 39-66.
  • Shiller, R.J. (2015). Irrational exuberance: Revised and expanded third edition: Princeton university press.
  • Sun, M., & Li, S. (2019). Overconfidence and Herd Effect in Behavioral Finance. DEStech Transactions on Economics, Business and Management(ssemr).
  • Tavakol, M., & Dennick, R. (2011). Making sense of Cronbach's alpha. International journal of medical education, 2, 53.
  • Thaler, R.H., & Sunstein, C. (2018). Dürtme (E. Günsel, Trans.). İstanbul: Pegasus Yayınları.
  • Tom, S.M., Fox, C.R., Trepel, C., & Poldrack, R. A. (2007). The neural basis of loss aversion in decision-making under risk. science, 315(5811), 515-518.
  • Tversky, A., & Kahneman, D. (1974). Judgment under uncertainty: Heuristics and biases. science, 185(4157), 1124-1131.
  • Ülkü, N. (2001). Finansta Davranış Teorileri ve İMKB’nin Dezenflasyon Programının Başlangıcında Fiyat Davranışı. İMKB Dergisi, 5(17), 101-132.
  • Velazquez, G. (2019). The market cycles and fear and greed. Retrieved from https://www.tradingacademy.com/lessons/article/market-cycles-fear-and-greed/
  • Wang, M., Rieger, M.O., & Hens, T. (2017). The impact of culture on loss aversion. Journal of Behavioral Decision Making, 30(2), 270-281.

Bireysel Yatırımcıların Davranışsal Yanlılıkları ve Finansal Okuryazarlık İlişkisi: Samsun İli Örneği

Year 2021, Volume: 5 Issue: 2, 315 - 341, 20.12.2021
https://doi.org/10.33399/biibfad.901371

Abstract

Bu çalışmada, bireysel hisse senedi yatırımcılarının finansal okuryazarlık düzeyleri ile yatırım kararları üzerinde etkili olan psikolojik faktörler arasındaki ilişki araştırılmıştır. Bu bağlamda finansal okuryazarlık ölçütü temel, orta ve ileri düzey olmak üzere üç kategoriye ayrılarak bunların aşırı güven, sürü davranışı ve kayıptan kaçınma yanlılıkları ile olan ilişkisi incelenmiştir. Araştırmada Samsun ilinde bulunan aracı kurumlarda hesabı olup aktif hisse senedi işlemi yapan bireysel yatırımcılar hedef alınmış olup çalışma kapsamında toplamda 205 katılımcıya anket uygulanmıştır. Araştırma verilerinin analizinde Yapısal Eşitlik Modeli kullanılmıştır. Çalışma sonuçlarına göre tüm finansal okuryazarlık düzeylerinin sürü davranışını negatif etkilediği tespit edilmiştir. Bunun yanında ileri düzey finansal okuryazarlığın aşırı güven üzerinde pozitif bir etkiye sahip iken kayıptan kaçınma yanlılığı üzerinde ise etkisinin negatif olduğu gözlenmiştir. Ayrıca, temel ve orta düzey finansal okuryazarlık seviyesindeki bireylerde kayıptan kaçınma ve aşırı güven yanlılığına yönelik anlamlı bir ilişki tespit edilememiştir.

References

  • Altunışık, R., Coşkun, R., Bayraktaroğlu, S. & Yıldırım, E. (2007). Sosyal bilimlerde araştırma yöntemleri: SPSS uygulamalı: Sakarya yayıncılık.
  • Ateş, S. (2014). Finansal okuryazarlık ve davranışsal önyargılar: Bireysel hisse senedi yatırımcısı üzerine ampirik bir çalışma. (Yüksek Lisans Yüksek Lisans Tezi). Galatasaray Üniversitesi İstanbul.
  • Atkinson, A., & Messy, A. (2010). Assessing financial literacy in countries and OECD pilot exercise. Center for Research on Pensions Welfare Policies.
  • Balcilar, M., & Demirer, R. (2015). Effect of global shocks and volatility on herd behavior in an emerging market: Evidence from Borsa Istanbul. Emerging Markets Finance and Trade, 51(1), 140-159.
  • Banerjee, A.V. (1992). A simple model of herd behavior. The Quarterly Journal of Economics, 107(3), 797-817.
  • Barber, B.M., & Odean, T. (1999). The courage of misguided convictions. Financial Analysts Journal, 55(6), 41-55.
  • Bayrak, O. ( 2012). Davranışal finans. . TSPAKB Sermaye Piyasasında Gündem Dergisi(120), 6-17.
  • Benartzi, S., & Thaler, R.H. (1995). Myopic loss aversion and the equity premium puzzle. The Quarterly Journal of Economics, 110(1), 73-92.
  • Bikhchandani, S., Hirshleifer, D., & Welch, I. (1992). A theory of fads, fashion, custom, and cultural change as informational cascades. Journal of political Economy, 100(5), 992-1026.
  • Bikhchandani, S., Hirshleifer, D., & Welch, I. (1998). Learning from the behavior of others: Conformity, fads, and informational cascades. Journal of economic perspectives, 12(3), 151-170.
  • Bikhchandani, S., & Sharma, S. (2001). Herd behavior in stock market. IMF Staff Papers, 47(3), 279-310.
  • Byrne, A., & Utkus, S. P. (2013). Behavioural finance. Understanding how the mind can help or hinder investment success, UK. Retrieved March, 20, 2019.
  • Chen, H., & Volpe, R.P. (1998). An analysis of personal financial literacy among college students. Financial services review, 7(2), 107-128.
  • Chiang, T.C., & Zheng, D. (2010). An empirical analysis of herd behavior in global stock markets. Journal of Banking & Finance, 34(8), 1911-1921.
  • Chuang, W.I., & Lee, B.S. (2006). An empirical evaluation of the overconfidence hypothesis. Journal of Banking & Finance, 30(9), 2489-2515.
  • Cipriani, M., & Guarino, A. (2009). Herd behavior in financial markets: an experiment with financial market professionals. Journal of the European Economic Association, 7(1), 206-233.
  • Cortina, J.M. (1993). What is coefficient alpha? An examination of theory and applications. Journal of applied psychology, 78(1), 98.
  • Daniel, K., Hirshleifer, D., & Subrahmanyam, A. (1998). Investor psychology and security market under‐and overreactions. The journal of finance, 53(6), 1839-1885.
  • Doğan, M. (2019). Türkiye Finansal Okuryazarlık Araştırması 1. Third Sector Social Economic Review, 54(4), 1602-1620.
  • Erdinç, Y. (2004). Yatırımcı ve teknik analiz sorgulanıyor: Siyasal Kitabevi.
  • Faikoğlu, S. (2012). İMKB’ de işlem yapan bireysel yatırımcıların davranışsal finans açısından incelenmesi. ( Doktora Doktora Tezi). Sakarya Üniversitesi, Sakarya.
  • Gervais, S., & Odean, T. (2001). Learning to be overconfident. The review of financial studies, 14(1), 1-27.
  • Gökmen, H. (2012). Finansal okuryazarlık İstanbul: Hiperlink Yayınları.
  • Gürbüz, S. (2019). Amos ile yapısal eşitlik modellemesi. Ankara: Seçkin Yayıncılık.
  • İçke, B. (2017). Finansal Okuryazarlık. İstanbul: Beta Yayıncılık.
  • Kahneman, D. (2003). A psychological perspective on economics. American Economic Review, 93(2), 162-168.
  • Kahneman, D., & Tversky, A. (1979). Prospect Theory: An Analysis of Decision under Risk. Econometrica, 47(2), 263-292.
  • Kengatharan, L., & Kengatharan, N. (2014). The influence of behavioral factors in making investment decisions and performance: Study on investors of Colombo Stock Exchange, Sri Lanka. Asian Journal of Finance & Accounting, 6(1), 1.
  • Kılınç, N., & Kılıç, Y. (2018). Finansal okuryazarlık ve davranışsal finans ilişkisi: yatırım profesyonellerine yönelik bir araştırma Paper presented at the Uluslararası Katılımlı 22. Finans Sempozyumu Mersin.
  • Kline, R.B. (2015). Principles and practice of structural equation modeling: Guilford publications.
  • Le Luong, P., & Thi Thu Ha, D. (2011). Behavioral factors influencing individual investors´ decision-making and performance.: A survey at the Ho Chi Minh Stock Exchange. In.
  • Merkle, C. (2017). Financial overconfidence over time: Foresight, hindsight, and insight of investors. Journal of Banking & Finance, 84, 68-87.
  • OECD. (2016). OECD/INFE “international survey of adult financial literacy competencies". Retrieved from https://www.oecd.org/finance/financial-education/oecd-infe-survey-adult-financial-literacy-competencies.htm
  • Robb, C.A., & Woodyard, A. S. (2011). Financial knowledge and best practice behavior. Journal of Financial Counseling and Planning, 22(1), 60-70.
  • Satoğlu, S. (2014). Bireysel yatırımcıları koruma aracı olarak finansal okuryazarlık ve Türkiye uygulaması. (Doktora Tezi). Marmara Üniversitesi İstanbul.
  • Schmukler, S.L. (2004). Benefits and risks of financial globalization: challenges for developing countries. Federal Reserve Bank of Atlanta Economic Review(2), 39-66.
  • Shiller, R.J. (2015). Irrational exuberance: Revised and expanded third edition: Princeton university press.
  • Sun, M., & Li, S. (2019). Overconfidence and Herd Effect in Behavioral Finance. DEStech Transactions on Economics, Business and Management(ssemr).
  • Tavakol, M., & Dennick, R. (2011). Making sense of Cronbach's alpha. International journal of medical education, 2, 53.
  • Thaler, R.H., & Sunstein, C. (2018). Dürtme (E. Günsel, Trans.). İstanbul: Pegasus Yayınları.
  • Tom, S.M., Fox, C.R., Trepel, C., & Poldrack, R. A. (2007). The neural basis of loss aversion in decision-making under risk. science, 315(5811), 515-518.
  • Tversky, A., & Kahneman, D. (1974). Judgment under uncertainty: Heuristics and biases. science, 185(4157), 1124-1131.
  • Ülkü, N. (2001). Finansta Davranış Teorileri ve İMKB’nin Dezenflasyon Programının Başlangıcında Fiyat Davranışı. İMKB Dergisi, 5(17), 101-132.
  • Velazquez, G. (2019). The market cycles and fear and greed. Retrieved from https://www.tradingacademy.com/lessons/article/market-cycles-fear-and-greed/
  • Wang, M., Rieger, M.O., & Hens, T. (2017). The impact of culture on loss aversion. Journal of Behavioral Decision Making, 30(2), 270-281.
There are 45 citations in total.

Details

Primary Language Turkish
Subjects Economics
Journal Section Makaleler
Authors

Cansu Nermin Erbaş This is me 0000-0002-0150-007X

Durmus Yıldırım 0000-0002-8004-3427

Publication Date December 20, 2021
Submission Date March 22, 2021
Published in Issue Year 2021 Volume: 5 Issue: 2

Cite

APA Erbaş, C. N., & Yıldırım, D. (2021). Bireysel Yatırımcıların Davranışsal Yanlılıkları ve Finansal Okuryazarlık İlişkisi: Samsun İli Örneği. Bingöl Üniversitesi İktisadi Ve İdari Bilimler Fakültesi Dergisi, 5(2), 315-341. https://doi.org/10.33399/biibfad.901371


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