The purpose of this research is to analyze the influence of heuristics on Brazilian investors' behavior in the decision-making process.
The authors apply the partial least squares structural equation modeling methodology. This sample is composed of 220 investors.
The heuristics of overconfidence and anchoring positively influence investors' decision-making, while loss aversion negatively influences it. The herd effect exhibits no influence. The results also support the idea that decision-making positively influences investors' performance. Investors feel secure in their attitudes regarding financial decision-making, even if their decisions are not always rational as they are affected by biases.
This article explains the influence of heuristics on investors' decision-making and performance in the Brazilian context during the COVID-19 pandemic.
