المستخلص: |
This research entitled ― The impact of Covid-19 on the relation between cognitive biases and investment decision is an attempt to discuss the impact of behavioural biases as mentioned in Kahneman and Tversky theories of Prospect and Heuristics theory taking into account the effect of Covid-19 as moderator variable. The aim of this research is to spotlight the different individual behaviour biases and attitudes of investors and its impact on their investment decisions and whether or not this relation is affected by the unprecedented Covid-19 pandemic fear. The theoretical framework related to this issue has been mentioned and a relevant literature is reviewed. The methodology of the research is the quantitative one where a questionnaire was distributed to a sample of 385 individual investors in Egypt. The analysis is done using SPSS Version 26 to generate frequencies, mean scores, percentages, standard deviation and regression analysis. In addition, findings of the research are discussed in relation to research hypotheses concluding that cognitive biases play a significant role in individual investment decisions and confirming the non-significance of the moderating effect of Corona virus fear on the relation between cognitive biases and investment decisions. Finally, recommending several techniques to reduce and overcome cognitive biases that affects investment decisions such as placing the burden on Egypt Stock Exchange (EGX) to initiate investor education programs so that individual investors would understand the happenings in the stock exchange which in turn would guide proper investment.
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