Behavioral biases, decisions and performance of real investors and the moderating role of financial literacy

seyed Alireza khezri¹ Azar khodabande²

1) Bachelor Student, Islamic Azad University, Qazvin Branch, Iran
2) PhD in Accounting, Department of Accounting, Qazvin Branch, Islamic Azad University, Qazvin, Iran

IOI Code : AZGC-AZKCBE
Publication : 1St International conference on new horizons in management,business, economics and humanities(icmbe.com)
Abstract :
    ABSTRACT Purpose: The objective of this article is to investigate the interplay between behavioral biases, decision-making processes, and performance outcomes of individual investors, emphasizing the critical role of financial literacy in mitigating these biases and enhancing investment effectiveness. Method: The article presents a bibliographic review that identifies and analyzes scholarly articles related to financial stress and the timeliness of financial reporting and audit reports. The objective is to establish criteria for selecting relevant papers, ensuring that only those with scientific credibility and direct relevance are included. By synthesizing these findings, the study enhances understanding of how financial stress affects reporting practices and provides insights for improving the timeliness and quality of financial disclosures. Conclusion: Financial literacy is recognized as a key tool for improving investment decision-making and reducing the impact of cognitive biases. Individuals with higher financial literacy are better equipped to identify and manage biases such as overconfidence and herd behavior, leading to more rational decisions and better investment outcomes. Comprehensive financial education programs in communities contribute to reduced household debt, increased national savings, and improved economic stability. Therefore, enhancing financial literacy through targeted education can improve financial behaviors and investment decisions, ultimately leading to sustainable economic development. Keywords: Financial literacy, Behavioral-cognitive biases, Investor decisions, Investment performance

Keywords : financial literacy behavioral cognitive biases investor decisions investment performance