Deviation Of The Relationship Between Cognitive Biases And Investment Behavior Of Stock Investors Research

Based on psychological experiments, their aims are to research and analyze psychological characters and investing behaviors of the investors. From a psychological perspective, this paper researches how the ordinary cognitive and judgment bias have an effect on the investing behaviors of the investors by psychological research methods, especially combining with the personal background variables to deeply understand the relationship of the process of cognition and investment decision-making. This paper also introduces some situational variables to find out how the preference of investment risks changes under different situational factors, thus to develop the prospect theory by Kahneman.Firstly, this paper makes a review on the cognitive bias in the judgment and decision-making. And then, we prove that the cognitive and behavioral bias in the judgment psychology and behavioral finance are also very common among Chinese investors.Secondly, this paper researches the impact of judgment psychology bias on the investment behaviors bias by Structural Equation Modal introducing important personal characteristic parameters such as age and years of investment. The research results indicate that the judgment psychological biases have significant causal relationship with seven factors such as representative intuition. Besides, the investment behavioral biases have significant causal relationship with six factors such as ambiguity aversion, but have no significant causal relationship with the factor of stock selection strategy. However, the factor of stock selection strategy has significant relationship with personal background. The factor of personal background has less impact on the investment behavioral biases than the judgment psychological biases, but the factor of personal background has correlativity with the judgment psychological biases.