The effect of uncertainty avoidance tendency and stress level on personal investment decisions: A study on finance department employees

Uncertainty is a decisive factor in individuals' decision-making processes, both psychologically and behaviorally. In the field of financial affairs, individuals' levels of stress and tendencies to avoid uncertainty are among the key factors shaping their investment decisions. From a behavioral finance perspective, traditional rational assumptions are questioned, and the effects of cognitive biases, emotions, and stress on individuals' economic decisions are explored. This thesis examines the effects of uncertainty avoidance tendencies and stress levels on individuals' investment decisions. The research findings reveal that individuals with high levels of uncertainty avoidance exhibit a more conservative attitude in their investment choices. These individuals tend to prefer familiar and predictable investment instruments while avoiding financial products and decisions with high levels of uncertainty. Furthermore, it was observed that participants with higher stress levels show a stronger tendency to gravitate toward safer and lower-risk investment options. The study indicates that as stress levels increase, individuals are more likely to think in the short term when making investment decisions and tend to avoid risky choices. It demonstrates that investment decisions are influenced not only by economic factors but also by psychological and social dynamics. In conclusion, this study, conducted within the framework of behavioral finance theory, contributes to a deeper understanding of the psychological and behavioral factors influencing individuals' investment decisions. The findings highlight the importance of training programs focused on stress management and coping with uncertainty to help optimize investors' decision-making processes and support more informed financial choices. Future research could expand the findings by including different occupational groups and sectors, providing broader validation and offering strategies that facilitate individuals in making more rational investment decisions. Keywords: Uncertainty, Stress, Investment Behavior, Behavioral Finance