Abstract:
Purpose –The aim/purpose of this research is to find out the influence of behavioural biasness
on important and critical financial decisions investing and financing of an organization. It will
also contribute to the work being done in behavioural finance field.
Design/methodology/approach – A mix of qualitative and quantitative research is done in order
to significantly analyse the influence of behavioural biasness on financial decisions. Structured
Questionnaire were used for the research and these questionnaires were floated in the service
telecommunication organizations i.e. Telenor, Ufone and Mobilink for the quantities analyses.
While interviews were semi structured in nature and were conducted with managers of same
organizations in order to get in depth information and carry out the qualitative part of the
research. Four independent variables; the confirmation biasness, overconfidence biasness, herd
biasness and the attribution biasness were there in the study whose influence on dependent
variable; financial decisions were studied. SPSS software was used in order to analyse the
quantitative data and different test were run for the analysis purpose. Primary data was gathered
with the help of these two while secondary data was used in order to form the base of research in
form of literature review.
Significance –This research will help the future researcher to have detailed information of how
confirmation biasness, overconfidence biasness, herd biasness and the attribution biasness can
have their influence on financial decision. Moreover, this research can also help in corporate
world to have better understating of these biasness involved in financial decisions and with this
research they can devise some ways to avoid this behavioural biasness to some extent.
Results – The results of this research shows that financial managers of service
telecommunication sector do consist of the behavioural biasness factors in their nature including
confirmation biasness, over confidence biasness, herd biasness and attribution biasness. Because
of which the important and critical financial decisions of the organization were being influenced.
Limitation–Time constraint was there, limited companies were being analysed and limited
behavioural biases are included in this research. Further more there exist no discussion on how
this biasness can be avoided; can be some limitations of this research done on behavioural
finance.
