Investigation of individual investments in Turkey in the framework of behavioral finance with structural equation modeling

In this study, investment preferences were tried to be explained in the light of behavioral finance and an empirical research was conducted for this purpose. The aim of the study is to determine the characteristics that have an impact on the preferences of individual investors (deposit, foreign exchange, stock, mutual fund, bond/bill, gold and others) in Turkey and to examine the decision-making behavior of investors in the light of behavioral finance. In addition, the investor's investment decisions may show irrational behaviors contrary to traditional theories. In this context, behavioral finance literature has been examined and conceptual foundations have been tried to be revealed. For this purpose, by examining the Traditional Finance Models, the theories and approaches that have been used before in the analysis of investment decisions and that continue to be used today are included. In the study, face-to-face and internet survey methods were used to collect data. Structural equation model (SEM) was created based on the data obtained. In the study, research was focused on behavioral dimensions defined as Overconfidence, Risk Tolerance, Propensity to Invest, and Positive Mood. With the help of the data obtained as a result of the analysis, the behavioral patterns that come to the fore in individual investor preferences in Turkey were compared with the findings of other studies. In the first stage of the study, after examining the effect of demographic characteristics on the behavioral dimension, the effects of behavioral dimensions on each other were examined both directly and indirectly. Models have been tested to determine the factors that affect investors' tendency to invest.