A Study of Confusion in Investment Behavior of Mongolian People
Author (s)
Banzragch Mijiddorj, Bolormaa Ayurzana, Uyanga Davaasuren, & Zaya Mashlai
Abstract
Behavioral finance has gained significant attention as researchers explore how cognitive biases and emotional factors influence individual decision-making and financial markets. Unlike traditional finance, which assumes rational behavior, behavioral finance emphasizes the psychological elements that often lead to irrational investment decisions. This study applied a structured questionnaire to analyze the investment behavior of Mongolian individuals, examining twenty distinct behavioral biases. Using a scoring system and behavioral type identification tests, the study identified five key biases that affect investor decision-making: loss aversion, regret aversion, overconfidence, optimism, and illusory control. The results indicated that loss aversion and regret aversion were the most prominent biases, followed by optimism and illusory control. Overconfidence was found to have a relatively smaller effect on decision-making. These findings suggest that psychological factors play a significant role in shaping investment choices among Mongolian investors.
Keywords: Behavior, illusion, behavioral finance, illusory management, erroneous cognitive reflections.
| Title: | A Study of Confusion in Investment Behavior of Mongolian People |
|---|---|
| Author: | Banzragch Mijiddorj, Bolormaa Ayurzana, Uyanga Davaasuren, & Zaya Mashlai |
| Journal Name: | International Journal of Science and Business |
| Website: | ijsab.com |
| ISSN: | ISSN 2520-4750 (Online), ISSN 2521-3040 (Print) |
| DOI: | https://doi.org/10.58970/IJSB.2552 |
| Media: | Online |
| Volume: | 44 |
| Issue: | 1 |
| Issue publication (Year): | 2025 |
| Acceptance Date: | 26/01/2025 |
| Date of Publication: | 09/02/2025 |
| PDF URL: | http://ijsab.com/wp-content/uploads/2552.pdf |
| Free download: | Available |
| Page: | 17-27 |
| First Page: | 17 |
| Last Page: | 27 |
| Paper Type: | Research paper |
| Current Status: | Published |
Cite This Article:
Mijiddorj, B., Ayurzana, B., Davaasuren, U. & Mashlai, Z. (2025). A Study of Confusion in Investment Behavior of Mongolian People, International Journal of Science and Business, 44(1), 17-27. DOI: https://doi.org/10.58970/IJSB.2552
Retrieved from http://ijsab.com/wp-content/uploads/2552.pdf
About Author (s)
Banzragch Mijiddorj, Graduate School of Business, Mongolian University of Science and Technology, Ulaanbaatar, Mongolia.
Bolormaa Ayurzana, School of Foreign Languages, Mongolian University of Science and Technology, Ulaanbaatar, Mongolia.
Uyanga Davaasuren, Graduate School of Business, Mongolian University of Science and Technology, Ulaanbaatar, Mongolia.
Zaya Mashlai (Corresponding Author), School of Business Administration and Humanities, Mongolian University of Science and Technology, Ulaanbaatar, Mongolia.
DOI: https://doi.org/10.58970/IJSB.2552