Хураангуй:
The objective of this paper is to identify the influence of behavioral biases on investor
decisions and ways to avoid them. The effects of these non-financial factors are known to
be distinguished into two subtypes, cognitive and emotional. The cognitive biases include
anchoring and adjustments, availability, confirmation, and hindsight. For emotional biases,
I chose loss aversion, overconfidence, and regret aversion. A total of 160 samples were
collected through a survey. The random sample was comprised of individual investors
primarily residing in Ulaanbaatar city. Further, to test all my hypotheses, I used a One Sample t-test. The analysis revealed that five out of seven biases significantly affect investment decisions. This finding indicates that behavioral factors do influence
investor decisions in Mongolia. It adds to the existing literature in recognizing that an
individual's decision-making processes cannot always be as entirely reasonable as most
conventional finance theories suggest. It further allows investors to minimize their potential biases and make better informed financial decisions.
