The Impacts of Behavioral Factors on Investment Decisions of Individual Investors in the Ho Chi Minh City Stock Exchange

Abstract

This study focuses on behavioural factors affecting individual investors’ decisions on the Ho Chi Minh City Stock Exchange (HOSE) and analyzes differences among groups based on gender, age, education, income, and experience. A questionnaire was developed, and a total of 290 survey samples were collected. The data were processed using SPSS 25.0 software, including descriptive statistics, reliability tests with Cronbach's Alpha, exploratory factor analysis (EFA), correlation analysis, and multiple regression analysis. The results reveal the positive impact of six behavioural factors on investment decisions: (1) Overconfidence, (2) Anchoring, (3) Availability, (4) Representativeness, (5) Loss Aversion and Regret, and (6) Herd Behaviour. This study provides useful information for individual investors and financial intermediaries to improve risk management and investment advisory. Furthermore, it opens opportunities for further research on various behavioural factors in investment decisions.