Yıl 2018, Cilt 3 , Sayı 2, Sayfalar 115 - 132 2018-12-28

THE IMPACT OF PSYCHOLOGICAL BIASES ON FOREIGN DIRECT INVESTMENT (FDI): THE CASE OF TURKISH INVESTORS IN ETHIOPIA

Abdu Seid ALİ [1] , Jale S.ORAN [2]


This paper aims to assess whether there is a behavioral bias of Turkish FDI investors in Ethiopia. Besides, it addresses the influence of firm size, investment duration, target customers and amount of investment on the behavioral variables. In order to do so, a survey was conducted on a sample of Turkish FDI investors in Ethiopia which tries to examine their cognitive psychological factors towards their investment decisions. The survey result was analyzed using factor analysis. The statistical findings confirm that some psychological anomalies such as representativeness, herding, regret aversion and mental accounting have been observed on Turkish FDI investors. The regression analysis shows that amount of investment of the firms significantly and positively affects herding, representativeness, regret aversion and mental accounting behaviors. Furthermore, duration of investment in Ethiopia affects their representativeness and mental accounting behavioral biases of investors positively.

FDI, Behavioral bias, Turkish investors, Ethiopia
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Birincil Dil en
Konular İşletme
Bölüm Makaleler
Yazarlar

Orcid: 0000-0001-5783-3546
Yazar: Abdu Seid ALİ (Sorumlu Yazar)
Kurum: Wolaita Sodo University, Faculty of Business and Economics
Ülke: Turkey


Yazar: Jale S.ORAN
Kurum: MARMARA UNIVERSITY, FACULTY OF BUSINESS ADMINISTRATION
Ülke: Turkey


Tarihler

Başvuru Tarihi : 12 Kasım 2018
Kabul Tarihi : 31 Aralık 2018
Yayımlanma Tarihi : 28 Aralık 2018

APA Ali, A , S.oran, J . (2018). THE IMPACT OF PSYCHOLOGICAL BIASES ON FOREIGN DIRECT INVESTMENT (FDI): THE CASE OF TURKISH INVESTORS IN ETHIOPIA . Journal of Research in Business , 3 (2) , 115-132 . DOI: 10.23892/JRB.2019.25