Do Behavioral Biases Affect Investors’ Investment Decision Making? Evidence from the Pakistani Equity Market

Using a unique sample constructed by 600 investors’ responses to structured questionnaire, we investigate the impact of behavioral biases on investment decision making in Pakistani equity market, as well roles that market anomalies and financial literacy play process. We first document empirical evidence support are closely associated these two factors significantly influence making. The additional analyses confirm mediating certain association between their Furthermore, reveals moderates anomalies, eventually influences Overall, although results inconclusive for relationships variables, our highlight importance terms optimal individuals stability overall stock market.