TY - JOUR T1 - THE IMPACT OF PSYCHOLOGICAL BIASES ON FOREIGN DIRECT INVESTMENT (FDI): THE CASE OF TURKISH INVESTORS IN ETHIOPIA AU - Ali, Abdu Seid AU - S.oran, Jale PY - 2018 DA - December Y2 - 2018 DO - 10.23892/JRB.2019.25 JF - Journal of Research in Business JO - JRB PB - Marmara Üniversitesi WT - DergiPark SN - 2630-6255 SP - 115 EP - 132 VL - 3 IS - 2 LA - en AB - This paperaims to assess whether there is a behavioral bias of Turkish FDI investors inEthiopia. Besides, it addresses the influence of firm size, investmentduration, target customers and amount of investment on the behavioralvariables. In order to do so, a survey was conducted on a sample of Turkish FDIinvestors in Ethiopia which tries to examine their cognitive psychologicalfactors towards their investment decisions. The survey result was analyzedusing factor analysis. The statistical findings confirm that some psychologicalanomalies such as representativeness, herding, regret aversion and mentalaccounting have been observed on Turkish FDI investors. The regression analysisshows that amount of investment of the firms significantly and positivelyaffects herding, representativeness, regret aversion and mental accountingbehaviors. Furthermore,duration of investment in Ethiopia affects their representativeness and mentalaccounting behavioral biases of investors positively. KW - FDI KW - Behavioral bias KW - Turkish investors KW - Ethiopia CR - Ackert, L., & Deaves, R. (2010). Behavioral Finance Psychology, Decision-Making, and Markets (1 ed.). Mason:South-Western Cengage Learning. CR - Aharoni, Y. (2011). Behavioral elements in foreign direct investments. Research in Global Strategic Management,15(15), 23-60. CR - Alves, R. P. (2008). Behavioural Determinants of Foreign Direct Investment. Lisbon: Gabinete de Estratégia e Estudos, Ministério da Economia. 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Retrieved June 13, 2017, from City University: http://openaccess.city.ac.uk/1185/ UR - https://doi.org/10.23892/JRB.2019.25 L1 - https://dergipark.org.tr/tr/download/article-file/618221 ER -