| dc.description.abstract | This study addresses the possible relationship between the level of financial
literacy and the behavioral biases regarding anchoring, herding, loss aversion, and
overconfidence of the individual investors participating in the Ho Chi Minh Stock
Exchange. Based on the sample size of 252 Vietnamese individual investors, multiple
statistical diagnostic tests were performed to test the reliability of the data collected,
and an ordinal least squares (OLS) regression was conducted to determine the
connection between the determining variables. The results show that financial literacy
has negative effects on both anchoring and herding bias, whereas expresses a positive
link with the remaining loss aversion and overconfidence bias. However, the regression
model does not meet the significant requirements; hence, the four relationships were
considered to be insignificant, and financial literacy has no impact on the behavioral
biases. Besides, the study also confirms the existence of a medium-high level of the
biases in investors’ behaviors, as well as determines the improvement in the financial
knowledge of Vietnamese investors. | en_US |
