AUTHOR=Din Sajid Mohy Ul , Mehmood Shabra Khalid , Shahzad Arfan , Ahmad Israr , Davidyants Alla , Abu-Rumman Ayman 

TITLE=The Impact of Behavioral Biases on Herding Behavior of Investors in Islamic Financial Products

JOURNAL=Frontiers in Psychology

VOLUME=Volume 11 - 2020

YEAR=2021

URL=https://www.frontiersin.org/journals/psychology/articles/10.3389/fpsyg.2020.600570

DOI=10.3389/fpsyg.2020.600570

ISSN=1664-1078

ABSTRACT=The study aimed to investigate the impact of behavioural biases on herding for Islamic financial products with the mediating of shariah literacy. An adopted questionnaire from several published studies was used to collect data. The data were collected from 410 respondents and was analyzed with Smart-PLS. The results for direct impact showed that self-attribution, illusion of control, and information availability have a positive and a significant impact on herding for Islamic financial products whilst shariah literacy showed an insignificant impact with herding. The results for mediation showed that previously significant and positive impact turned to insignificant when shariah literacy was introduced as mediating variable between the illusion of control, self-attribution, information availability and herding. From a theoretical perspective, this study would contribute to the existing body of knowledge of financial decision-making from shariah literacy point-out. On the other hand, the findings of this study may be useful for investors to avoid herding in the Islamic financial markets. The authors synthesize the contribution made by behavioural finance studies in extending the knowledge of herding behaviour in Islamic financial products with a mediating role of shariah literacy. The key limitation of the study includes data were collected from three districts of Punjab, Pakistan