Financial literacy and behavioral bias: an empirical study on individual stock investor

This study aimed to investigate the relationship between investors' financial literacy level and behavioral biases which may affect them in the financial decision process. Survey method was employed to gather the related data. 56,54% of investors who participated in the survey, fell into in the group of the investors with a high level of financial literacy.and 43,46% into the group of the investors with a low level of financial literacy.. The mean value, which shows the investors' extent of agreement with the statements related to behavioral biases, was over 3,25 for each of the biases. This fact showed that investors had a high level of tendency to the behavioral biases which was searched in this study. When the level of financial literacy increases, the level of overoptimism, confirmation and representativeness biases increases and the level of overconfidence, framing and loss aversion biases decreases significantly.