Debiasing the Investment Decision-making Through Positive Psychology

Numerous research papers have addressed the “human pathology” that negatively affects investment decisions. However, little emphasis has been dedicated to personality traits that positively influence investment choice criteria and outcomes. Using Harman's Single factor analysis, we examine the effect of psychological traits in an investment undertaking in an empirical task of 441 participants employed in different organizations in Istanbul, Türkiye between February 2021 and June 2021. Drawing on positive psychology, we introduce psychological capital and mindfulness as positive personality traits and assert that these attributes improve both decision-making processes and investment decision outcomes. This study has practical implication and will assist the investors in their decision-making.