The Effect of Behavioral–Cognitive Determinants on Perceived Investment Decision Quality: A Field Study of Individual Investors in the Damascus Securities Exchange

Abstract

This study examined the effect of behavioral–cognitive determinants on perceived investment decision quality among individual investors in the Damascus Securities Exchange. It investigated five main determinants: overconfidence, herding behavior, investment risk perception, reliance on market information and disclosure, and financial self-efficacy. The study adopted a descriptive–analytical approach and used a questionnaire as the main tool for collecting data from a purposive sample of 162 investors who had actual experience in buying or selling listed stocks. Data were analyzed using SPSS through descriptive statistics, Cronbach’s alpha reliability test, and multiple linear regression. The findings showed that the research instrument had a high level of internal consistency, with Cronbach’s alpha values ranging between 0.876 and 0.922. Regression results indicated that the studied determinants explained 68.3% of the variance in perceived investment decision quality. Overconfidence and herding behavior had significant negative effects, whereas risk perception, market information and disclosure, and financial self-efficacy had significant positive effects. The study recommends improving investment awareness, disclosure quality, and investors’ decision-making behavior.