Analysis of investor behavior: The impact of demographic factors on behavioral finance in Azerbaijan

The main purpose of this study is to examine the relationship between overconfidence and loss aversion, which are two basic behavioral finance tendencies that can be seen in individual investors in Azerbaijan, and demographic factors (age, education level and income level). The research was conducted using a quantitative method and data were collected from individual investors in Azerbaijan via an online survey. A total of 386 participants' data were analyzed using SPSS software. Chi-square test and Multivariate Analysis of Variance (MANOVA) were used in statistical evaluations. Hypotheses tested whether demographic variables have a significant effect on behavioral tendencies. The findings obtained showed that age, education and income levels do not have a statistically significant effect on overconfidence and loss aversion. These results provide an idea about the behavioral tendencies of individual investors in Azerbaijan. However, since the sample was collected online and the participants were mostly young, undergraduate or graduate students, and low-income individuals, the results cannot be generalized to the entire investor population. These results can be retested with more diverse samples in future research.