Impact of Behavioral Biases on Manager’s Investment Decision-Making Process with Moderating Effect of Financial Literacy


  • Hafiz Muhammad Waqar National University of Modern Languages Islamabad Pakistan (NUML)
  • Bushra Zulfiqar PMAS Arid Agricultural University Rawalpindi
  • Munawar Hussain PMAS Arid Agriculture University Islamabad Pakistan


Behavioral Biases, Overconfidence, Representativeness, Self-attribution, Financial Literacy


Purpose: This study examines the impact of behavioural biases such as Overconfidence, representativeness, and Self-attribution on managers’ investment decisions by using financial literacy as a moderator for the banking sector existing in less developed market Pakistan. The study used the financial literacy moderating factor.

Design and Methodology: The data was collected through questionnaires. The population of this study consists of managers from the banking sector of Pakistan. The sample size consists of 200 respondent managers from different banks. The study used a descriptive summary, Structure Equation Model (SEM) technique, and Confirmatory Factor Analysis (CFA) to capture the results. The study also used the Alpha test, Correlations matrix, simple and linear regression model, etc.

Findings: Findings of this study show that factors of Overconfidence, Representativeness, and Self-attribution have a significant relationship with Managers' Investment Decisions in less developed markets in Pakistan. The study is implacable for managers, researchers, investors, other policymakers, etc.

Implications: The study is implacable for managers, researchers, students, investors, other policymakers, etc. This study is implacable for the managers of the financial sector to make their investment decisions without biases. Finally, the study can be extended by adding some other behavioural biases, and also by making the markets survey for managers financial analysts, and investors’ investment decisions.


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How to Cite

Hafiz Muhammad Waqar, Bushra Zulfiqar, & Munawar Hussain. (2022). Impact of Behavioral Biases on Manager’s Investment Decision-Making Process with Moderating Effect of Financial Literacy. UW Journal of Management Sciences, 6(1), 166–186. Retrieved from