This study captures the impact of herding behavior and overconfidence biases on the investors’ decision-making in Pakistan. The proposed study collects the necessary data through questionnaires distributed among 150 respondents who were active in stock market and manage to process 100 completed ones. | Impact of herding behavior and overconfidence bias on investors decision-making in Pakistan Accounting 5 2019 81 90 Contents lists available at GrowingScience Accounting homepage ac Impact of herding behavior and overconfidence bias on investors decision-making in Pakistan Muhammad Qasim Rana Yassir Hussain Intkhab Mehboob and Muhammad Arshad University of Education Lahore Jauharabad Campus Pakistan CHRONICLE ABSTRACT Article history Investors decision-making are influenced by certain biases as reported in literature. Received March 3 2018 Fundamental analysis is based on the assumption that investors think rationally but in practice Received in revised format June things may be different. This study captures the impact of herding behavior and overconfidence 11 2018 biases on the investors decision-making in Pakistan. The proposed study collects the necessary Accepted July 3 2018 Available online data through questionnaires distributed among 150 respondents who were active in stock July 4 2018 market and manage to process 100 completed ones. The relationships between investors Keywords decision-making and herding behavior as well as overconfidence biases were empirically tested Herding Behavior using Ordinary Least Square OLS method. The results show that Pakistani investors Overconfidence Bias decisions were significantly influenced by both herding behavior and overconfidence biases. Decision making OLS 2019 by the authors licensee Growing Science Canada. 1. Introduction Recently different modes of investment have become popular and investors make a decision about the selection of investment differently. The earliest theories of economics show that the individual is rational and make decisions by evaluating all information which is available. As time passes it becomes difficult for the investors to make their investment decision because they have to consider various factors before making decision. In the past the investors had .
