The Impact of Behavioral and Social Biases on Investment Performance of Individual Investors: The Mediating Role of Perceived Market Efficiency In Pakistan


  • Muhammad Waqas NCBA, Lahore
  • Shoaib Manzoor NCBA, Lahore
  • Fawad Waseem Iqra University, Karachi
  • Muhammad Akhtar Universiti Utara Malaysia (UUM), Malaysia.



Overconfidence, Representativeness, Social interaction, Herding, Perceived market efficiency, investment performance


Behavioural finance is a philosophy that combines psychological and sociological theories with finance. The present study investigated the influence of behavioural and social components on perceived market efficiency and then, in turn, on the investment performance of individual investors. A survey method was used to gather data from the individual investor. The sample size consisted of 307 respondents. Data were analysed with the help of smart PLS and SPSS software. The finding of the study indicates that the behavioural (overconfidence and representativeness) and social (herding and social interaction) factors have a positive impact on perceived market efficiency and investment performance. This research consists of two behavioural variables and two social variables to determine the impact on investment performance. Hence this research helps practitioners and investors to upgrade their investments at the individual level.


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How to Cite

Waqas, M., Manzoor , S., Waseem, F., & Akhtar , M. (2023). The Impact of Behavioral and Social Biases on Investment Performance of Individual Investors: The Mediating Role of Perceived Market Efficiency In Pakistan. Journal of Financial Technologies (Fintech), Inclusion and Sustainability, 2(1), 19–46.