Impacts Of Heuristic Biases on Investment Decision Making in Pakistani Market by Mediating Role of Locus of Control

Authors: Dr. Mahmood Rehmani, Abdul Basit, Naheed Ashraf

The purpose and aim of our research studies is to identify the influence of three commonly heuristic biases for example availability, representative and overconfidence biasness on decision making, also identify how much these biases effects our investment. which is mediated by the locus of control bias. This is quantitative research in this research we used a review and questionnaire method on behalf of the getting data from respondents. Data is collected from 200 local financier of Sialkot Pakistan. From the results of this search study we revealed and disclosed the effect of three of our heuristics variables causes the investors towards diverge after logical decision-making process significantly and locus of control’s have not a significant result on investment decision making process. Our model gives us perception much heuristic or other behavioral issues can tip the investor to some sub-optimal decision making process. Our research found that it is beneficial and useful for individual investor, foreign individual investor, managers of investment, and for policy makers also.