Abstract:
Retail investment activity is steadily increasing in Kazakhstan, yet the psychological
influences on investor decisions in this emerging market remain underexplored. This study
investigates how individual investors in Kazakhstan are affected by behavioral tendencies
that may interfere with rational financial reasoning. While traditional finance theory assumes
that investors process all available information, behavioral finance suggests that emotions and
behavioral biases often guide decision-making.
An online survey was conducted to uncover the behavioral patterns most relevant to
this regional context. The questionnaire was built on concepts from behavioral finance
literature and included ten items targeting specific biases. A total of 64 valid responses were
gathered and analyzed. Statistical validation involved checking internal consistency, principal
component analysis, and applying non-parametric tests.
Loss aversion and confirmation bias appear to shape investor choices among the
biases measured. Interestingly, the analysis did not reveal strong associations between
behavioral tendencies and demographic attributes such as gender, age, or prior investing
experience, though a few minor trends were noted. The factor structure also confirmed that
these biases function independently, without clustering into broader behavioral types.
The outcomes of this study offer practical guidance for professionals working with
retail investors. They can apply these insights to better understand their clients’ decision
making process and develop more tailored support tools. More broadly, this study contributes
original empirical data to the underexplored field of behavioral finance in Central Asia,
offering insights into the psychological dynamics of investors within a developing market
context. By identifying the most influential biases across Kazakhstan’s investor population,
the study helps build a foundation for stronger market participation and supports future
research on investor behavior in similar contexts.
