DOES BEHAVIORAL FACTORS AFFECTS INVESTOR'S DECISION MAKING WHEN USING ACCOUNTING INFORMATION SYSTEM

Abstract

This study investigates the behavioral elements that shape investor decision-making, particularly in the context of stock market investments supported by accounting information systems (AIS). Behavioral finance has emerged as an important field that examines how psychological traits and cognitive shortcuts influence financial judgments, challenging the assumption of purely rational investor behavior. The study gathered data from 270 retail investors and examined their responses utilizing SPSS and AMOS software.  Advanced statistical methods, such as confirmatory factor analysis (CFA) and structural equation modeling (SEM), were utilized to examine the correlations among variables.  The results indicate that psychological factors, including emotions, attitudes, moods, personality traits, and heuristic-based decision-making, profoundly influence investment behavior.  Furthermore, the findings validate that these determinants persist in influencing investor decisions, even in the presence of dependable financial data disseminated via AIS.  This work offers theoretical and practical contributions by integrating insights from behavioral finance and accounting systems research.  It contributes evidence to the expanding body of literature that synthesizes human psychology with financial technology.  The results provide direction to investors, financial institutions, and policymakers on mitigating biases and fostering more rational investment strategies through the appropriate utilization of AIS.