{"status":"ok","message-type":"work","message-version":"1.0.0","message":{"indexed":{"date-parts":[[2026,5,8]],"date-time":"2026-05-08T21:48:20Z","timestamp":1778276900467,"version":"3.51.4"},"reference-count":69,"publisher":"Emerald","issue":"7","license":[{"start":{"date-parts":[[2016,8,1]],"date-time":"2016-08-01T00:00:00Z","timestamp":1470009600000},"content-version":"tdm","delay-in-days":0,"URL":"https:\/\/www.emerald.com\/insight\/site-policies"}],"content-domain":{"domain":[],"crossmark-restriction":false},"short-container-title":["K"],"published-print":{"date-parts":[[2016,8,1]]},"abstract":"<jats:sec><jats:title content-type=\"abstract-subheading\">Purpose<\/jats:title><jats:p>Based on a thorough review and synthesis of the literature in behavioral finance, the purpose of this paper is to develop three measures of heuristics that tend to influence investment decisions of individual investors.<\/jats:p><\/jats:sec><jats:sec><jats:title content-type=\"abstract-subheading\">Design\/methodology\/approach<\/jats:title><jats:p>Using perceptual data collected from a sample of 167 individual investors in the USA, the reliability and validity of heuristics measures are assessed by confirmatory factor analysis with structural equation modeling. Then, the second-order model is executed in order to indicate the paths among the study\u2019s constructs. Finally, a multiple-group analysis is conducted to analyze the moderating effects of demographic factors on the relationship between the perceived level of heuristics and their constituent dimensions.<\/jats:p><\/jats:sec><jats:sec><jats:title content-type=\"abstract-subheading\">Findings<\/jats:title><jats:p>Of the three groups of heuristics, salience is found to be the most important followed by mental accounting, while representativeness features as relatively less important. Regarding the moderating effects, only investment experience is noted to have a significant moderating impact.<\/jats:p><\/jats:sec><jats:sec><jats:title content-type=\"abstract-subheading\">Research limitations\/implications<\/jats:title><jats:p>The data utilized for testing and validating this instrument was acquired from a relatively small sample of individual investors in the USA, which makes the generalization of findings somewhat limited.<\/jats:p><\/jats:sec><jats:sec><jats:title content-type=\"abstract-subheading\">Practical implications<\/jats:title><jats:p>Both researchers and practitioners in behavioral finance can use these measurement scales to better understand the impact of heuristics on individual investment decisions and also to develop models that relate the critical factors of heuristics to the performance of individual investment decisions.<\/jats:p><\/jats:sec><jats:sec><jats:title content-type=\"abstract-subheading\">Originality\/value<\/jats:title><jats:p>To date, there has been no systematic attempt in the extant behavioral finance literature to develop a valid and reliable instrument on heuristics which would aid to improve the quality of decision making in investment analysis.<\/jats:p><\/jats:sec>","DOI":"10.1108\/k-05-2015-0130","type":"journal-article","created":{"date-parts":[[2016,9,9]],"date-time":"2016-09-09T08:11:35Z","timestamp":1473408695000},"page":"1052-1071","source":"Crossref","is-referenced-by-count":23,"title":["Developing an instrument for measuring the effects of heuristics on investment decisions"],"prefix":"10.1108","volume":"45","author":[{"given":"Kadir C.","family":"Yalcin","sequence":"first","affiliation":[],"role":[{"role":"author","vocabulary":"crossref"}]},{"given":"Ekrem","family":"Tatoglu","sequence":"additional","affiliation":[],"role":[{"role":"author","vocabulary":"crossref"}]},{"given":"Selim","family":"Zaim","sequence":"additional","affiliation":[],"role":[{"role":"author","vocabulary":"crossref"}]}],"member":"140","reference":[{"issue":"4","key":"key2020121322091522100_ref001","doi-asserted-by":"crossref","first-page":"503","DOI":"10.2307\/1907921","article-title":"Le Comportement de L\u2019homme Rationnel Devant le Risque: Critique Des Postulats et Axiomes de L\u2019ecole Americaine","volume":"21","year":"1953","journal-title":"Econometrica"},{"issue":"4","key":"key2020121322091522100_ref002","doi-asserted-by":"crossref","first-page":"347","DOI":"10.1002\/for.3980090405","article-title":"Judgmental extrapolation and the salience of change","volume":"9","year":"1990","journal-title":"Journal of Forecasting"},{"key":"key2020121322091522100_ref003","volume-title":"Amos 4.0 User\u2019s Guide","year":"1999"},{"issue":"3","key":"key2020121322091522100_ref004","doi-asserted-by":"crossref","first-page":"396","DOI":"10.1177\/002224377701400320","article-title":"Estimating non-response bias in mail surveys","volume":"14","year":"1977","journal-title":"Journal of Marketing Research"},{"key":"key2020121322091522100_ref005","volume-title":"The Social Animal","year":"1999","edition":"8th ed."},{"issue":"3","key":"key2020121322091522100_ref006","doi-asserted-by":"crossref","first-page":"459","DOI":"10.2307\/2392322","article-title":"Representing and testing organizational theories: a holistic construal","volume":"27","year":"1982","journal-title":"Administrative Science Quarterly"},{"issue":"1","key":"key2020121322091522100_ref007","doi-asserted-by":"crossref","first-page":"261","DOI":"10.1162\/003355301556400","article-title":"Boys will be boys: gender, overconfidence, and common stock investment","volume":"116","year":"2001","journal-title":"The Quarterly Journal of Economics"},{"issue":"6","key":"key2020121322091522100_ref008","doi-asserted-by":"crossref","first-page":"2095","DOI":"10.1086\/497042","article-title":"Out of sight, out of mind: the effects of expenses on mutual fund flows","volume":"78","year":"2005","journal-title":"Journal of Business"},{"key":"key2020121322091522100_ref010","doi-asserted-by":"crossref","unstructured":"Barberis, N. and Huang, M. (2006), \u201cThe loss aversion\/narrow framing approach to the equity premium puzzle\u201d, NBER Working Paper No. 12378, Massachusetts, pp. 1-36.","DOI":"10.3386\/w12378"},{"issue":"3","key":"key2020121322091522100_ref009","first-page":"307","article-title":"A model of investor sentiment","volume":"49","year":"1998","journal-title":"Journal of Financial Economics"},{"issue":"1","key":"key2020121322091522100_ref011","doi-asserted-by":"crossref","first-page":"79","DOI":"10.1257\/aer.91.1.79","article-title":"Naive diversification strategies in defined contribution saving plans","volume":"91","year":"2001","journal-title":"American Economic Review"},{"issue":"2","key":"key2020121322091522100_ref012","doi-asserted-by":"crossref","first-page":"238","DOI":"10.1037\/0033-2909.107.2.238","article-title":"Comparative fit indexes in structural models","volume":"107","year":"1990","journal-title":"Psychological Bulletin"},{"issue":"1","key":"key2020121322091522100_ref013","doi-asserted-by":"crossref","first-page":"5","DOI":"10.1207\/s15427579jpfm0701_2","article-title":"The demographics of overconfidence","volume":"7","year":"2006","journal-title":"Journal of Behavioral Finance"},{"issue":"3","key":"key2020121322091522100_ref014","doi-asserted-by":"crossref","first-page":"529","DOI":"10.1111\/j.1540-6261.1986.tb04513.x","article-title":"Noise","volume":"41","year":"1986","journal-title":"Journal of Finance"},{"key":"key2020121322091522100_ref015","volume-title":"Structural Equation Modeling with AMOS: Basic Concepts, Applications, and Programming","year":"2001"},{"issue":"1","key":"key2020121322091522100_ref016","doi-asserted-by":"crossref","first-page":"64","DOI":"10.1177\/002224377901600110","article-title":"A paradigm for developing better measures of marketing constructs","volume":"16","year":"1979","journal-title":"Journal of Marketing Research"},{"key":"key2020121322091522100_ref017","volume-title":"Marketing Research: Methodological Foundations","year":"1987","edition":"4th ed."},{"issue":"8","key":"key2020121322091522100_ref018","first-page":"297","article-title":"Coefficient alpha and the internal structure of tests","volume":"16","year":"1951","journal-title":"Psychometrika"},{"issue":"3","key":"key2020121322091522100_ref019","doi-asserted-by":"crossref","first-page":"793","DOI":"10.1111\/j.1540-6261.1985.tb05004.x","article-title":"Does the stock market overreact","volume":"40","year":"1985","journal-title":"The Journal of Finance"},{"issue":"4","key":"key2020121322091522100_ref020","doi-asserted-by":"crossref","first-page":"703","DOI":"10.1086\/261703","article-title":"Noise trader risk in financial markets","volume":"98","year":"1990","journal-title":"Journal of Political Economy"},{"issue":"4","key":"key2020121322091522100_ref021","doi-asserted-by":"crossref","first-page":"643","DOI":"10.2307\/1884324","article-title":"Risk, ambiguity, and the savage axioms","volume":"75","year":"1961","journal-title":"Quarterly Journal of Economics"},{"key":"key2020121322091522100_ref022","volume-title":"Financial Risk Taking: An Introduction to the Psychology of Trading and Behavioural Finance","year":"2004","edition":"1st ed."},{"key":"key2020121322091522100_ref023","volume-title":"Business Research Methods","year":"1980","edition":"Rev. ed."},{"issue":"1","key":"key2020121322091522100_ref501","doi-asserted-by":"crossref","first-page":"3","DOI":"10.1016\/0304-405X(88)90020-7","article-title":"Dividend yields and expected stock returns","volume":"22","year":"1988","journal-title":"Journal of Financial Economics"},{"issue":"3","key":"key2020121322091522100_ref024","doi-asserted-by":"crossref","first-page":"585","DOI":"10.2307\/2946693","article-title":"Ambiguity aversion and comparative ignorance","volume":"110","year":"1995","journal-title":"Quarterly Journal of Economics"},{"issue":"2","key":"key2020121322091522100_ref025","doi-asserted-by":"crossref","first-page":"186","DOI":"10.1177\/002224378802500207","article-title":"An updated paradigm for scale development incorporating unidimensionality and its assessment","volume":"25","year":"1988","journal-title":"Journal of Marketing Research"},{"issue":"2","key":"key2020121322091522100_ref502","doi-asserted-by":"crossref","first-page":"311","DOI":"10.1016\/j.jfineco.2004.10.006","article-title":"Prospect theory, mental accounting and momentum","volume":"78","year":"2005","journal-title":"Journal of Financial Economics"},{"key":"key2020121322091522100_ref026","volume-title":"Multivariate Data Analysis","year":"1998"},{"issue":"4","key":"key2020121322091522100_ref027","doi-asserted-by":"crossref","first-page":"1533","DOI":"10.1111\/0022-1082.00379","article-title":"Investor psychology and asset pricing","volume":"56","year":"2001","journal-title":"Journal of Finance"},{"issue":"3","key":"key2020121322091522100_ref028","doi-asserted-by":"crossref","first-page":"659","DOI":"10.1093\/rfs\/14.3.659","article-title":"Familiarity breeds investment","volume":"14","year":"2001","journal-title":"Review of Financial Studies"},{"issue":"2","key":"key2020121322091522100_ref029","doi-asserted-by":"crossref","first-page":"937","DOI":"10.1111\/0022-1082.00232","article-title":"Truth in mutual fund advertising: evidence on future performance and fund flows","volume":"55","year":"2000","journal-title":"Journal of Finance"},{"issue":"3","key":"key2020121322091522100_ref030","doi-asserted-by":"crossref","first-page":"235","DOI":"10.1080\/15427560.2014.939748","article-title":"Individual characteristics and the disposition effect: the opposing effects of confidence and self-regard","volume":"15","year":"2014","journal-title":"Journal of Behavioral Finance"},{"issue":"4","key":"key2020121322091522100_ref031","doi-asserted-by":"crossref","first-page":"237","DOI":"10.1037\/h0034747","article-title":"On the psychology of prediction","volume":"80","year":"1973","journal-title":"Psychological Review"},{"issue":"2","key":"key2020121322091522100_ref032","doi-asserted-by":"crossref","first-page":"263","DOI":"10.2307\/1914185","article-title":"Prospect theory: an analysis of decision under risk","volume":"47","year":"1979","journal-title":"Econometrica"},{"issue":"4","key":"key2020121322091522100_ref033","doi-asserted-by":"crossref","first-page":"52","DOI":"10.3905\/jpm.1998.409643","article-title":"Aspects of investor psychology","volume":"24","year":"1998","journal-title":"Journal of Portfolio Management"},{"issue":"1","key":"key2020121322091522100_ref034","doi-asserted-by":"crossref","first-page":"50","DOI":"10.1080\/15427561003591116","article-title":"The availability heuristic and investors\u2019 reaction to company-specific events","volume":"11","year":"2010","journal-title":"Journal of Behavioral Finance"},{"issue":"5","key":"key2020121322091522100_ref035","doi-asserted-by":"crossref","first-page":"1541","DOI":"10.1111\/j.1540-6261.1994.tb04772.x","article-title":"Contrarian investment, extrapolation, and risk","volume":"49","year":"1994","journal-title":"Journal of Finance"},{"key":"key2020121322091522100_ref036","unstructured":"Lim, S.S. (2004), \u201cDo investors integrate losses and segregate gains? Mental accounting and investor trading decisions\u201d, EFA 2003 Annual Conference Paper No. 87."},{"issue":"2","key":"key2020121322091522100_ref037","doi-asserted-by":"crossref","first-page":"145","DOI":"10.1016\/0304-3932(85)90061-3","article-title":"The equity premium: a puzzle","volume":"15","year":"1985","journal-title":"Journal of Monetary Economics"},{"key":"key2020121322091522100_ref038","unstructured":"Montier, J. (2002), \u201cGlobal equity strategy part man, part monkey\u201d, Dresdner Kleinwort Wasserstein research report, London, pp. 1-12."},{"issue":"1","key":"key2020121322091522100_ref039","doi-asserted-by":"crossref","first-page":"68","DOI":"10.1080\/15427560.2015.1000330","article-title":"On the persistence of overconfidence: evidence from multi-unit auctions","volume":"16","year":"2015","journal-title":"Journal of Behavioral Finance"},{"key":"key2020121322091522100_ref040","volume-title":"The Psychology of Investing","year":"2005","edition":"2nd ed."},{"key":"key2020121322091522100_ref041","volume-title":"Psychometric Theory","year":"1978","edition":"2nd ed."},{"issue":"5","key":"key2020121322091522100_ref042","doi-asserted-by":"crossref","first-page":"1279","DOI":"10.1257\/aer.89.5.1279","article-title":"Do investors trade too much?","volume":"89","year":"1999","journal-title":"The American Economic Review"},{"issue":"8","key":"key2020121322091522100_ref043","first-page":"33","article-title":"Behavioral finance: ivory towers are trembling","volume":"29","year":"2008","journal-title":"\u00d6neri: Marmara \u00dcniversitesi Sosyal Bilimler Dergisi"},{"issue":"June","key":"key2020121322091522100_ref044","first-page":"41","article-title":"Development and validation of the perceived investment value (PIV) scale","volume":"36","year":"2013","journal-title":"Journal of Economic Psychology"},{"issue":"4","key":"key2020121322091522100_ref045","doi-asserted-by":"crossref","first-page":"429","DOI":"10.1016\/S0927-538X(03)00048-9","article-title":"Behavioral finance","volume":"11","year":"2003","journal-title":"Pacific \u2013 Basin Finance Journal"},{"issue":"2","key":"key2020121322091522100_ref046","doi-asserted-by":"crossref","first-page":"94","DOI":"10.1080\/15427560.2013.790387","article-title":"An exploratory inquiry into the psychological biases in financial investment behaviors","volume":"14","year":"2013","journal-title":"Journal of Behavioral Finance"},{"key":"key2020121322091522100_ref047","volume-title":"Beyond Greed and Fear: Understanding Behavioral Finance and the Psychology of Investing","year":"2002","edition":"2nd ed."},{"issue":"3","key":"key2020121322091522100_ref048","doi-asserted-by":"crossref","first-page":"777","DOI":"10.1111\/j.1540-6261.1985.tb05002.x","article-title":"The disposition to sell winners too early and ride losers too long: theory and evidence","volume":"40","year":"1985","journal-title":"Journal of Finance"},{"key":"key2020121322091522100_ref049","doi-asserted-by":"crossref","unstructured":"Shiller, R. (1998), \u201cHuman behavior and the efficiency of the financial system\u201d, NBER Working Paper No. W6375, Massachusetts.","DOI":"10.3386\/w6375"},{"issue":"1","key":"key2020121322091522100_ref050","doi-asserted-by":"crossref","first-page":"83","DOI":"10.1257\/089533003321164967","article-title":"From efficient markets theory to behavioral finance","volume":"17","year":"2003","journal-title":"The Journal of Economic Perspectives"},{"key":"key2020121322091522100_ref051","doi-asserted-by":"crossref","unstructured":"Shleifer, A. and Vishny, R. (1995), \u201cThe limits of arbitrage\u201d, NBER Working Papers, No. 5167, Massachusetts.","DOI":"10.3386\/w5167"},{"issue":"5","key":"key2020121322091522100_ref052","doi-asserted-by":"crossref","first-page":"1589","DOI":"10.1111\/0022-1082.00066","article-title":"Costly search and mutual fund flows","volume":"53","year":"1998","journal-title":"Journal of Finance"},{"issue":"1","key":"key2020121322091522100_ref053","doi-asserted-by":"crossref","first-page":"99","DOI":"10.2307\/1884852","article-title":"A behavioral model of rational choice","volume":"69","year":"1955","journal-title":"Quarterly Journal of Economics"},{"issue":"6","key":"key2020121322091522100_ref054","doi-asserted-by":"crossref","first-page":"18","DOI":"10.2469\/faj.v55.n6.2311","article-title":"Behavioral finance: past battles and future engagements","volume":"55","year":"1999","journal-title":"Financial Analysts Journal"},{"issue":"3","key":"key2020121322091522100_ref055","doi-asserted-by":"crossref","first-page":"373","DOI":"10.1016\/S0167-4870(03)00055-2","article-title":"Behavioral finance and asset prices: where do we stand?","volume":"25","year":"2004","journal-title":"Journal of Economic Psychology"},{"issue":"1","key":"key2020121322091522100_ref056","doi-asserted-by":"crossref","first-page":"12","DOI":"10.1111\/j.1468-036X.2007.00415.x","article-title":"Behavioral finance: a review and synthesis","volume":"14","year":"2008","journal-title":"European Financial Management"},{"issue":"1","key":"key2020121322091522100_ref057","doi-asserted-by":"crossref","first-page":"197","DOI":"10.1257\/jep.1.1.197","article-title":"Anomalies: the january effect","volume":"1","year":"1987","journal-title":"The Journal of Economic Perspectives"},{"issue":"6","key":"key2020121322091522100_ref058","doi-asserted-by":"crossref","first-page":"12","DOI":"10.2469\/faj.v55.n6.2310","article-title":"The end of behavioral finance","volume":"55","year":"1999","journal-title":"Financial Analysts Journal"},{"issue":"3","key":"key2020121322091522100_ref059","doi-asserted-by":"crossref","first-page":"183","DOI":"10.1002\/(SICI)1099-0771(199909)12:3<183::AID-BDM318>3.0.CO;2-F","article-title":"Mental accounting matters","volume":"12","year":"1999","journal-title":"Journal of Behavioral Decision Making"},{"issue":"2","key":"key2020121322091522100_ref060","doi-asserted-by":"crossref","first-page":"207","DOI":"10.1016\/0010-0285(73)90033-9","article-title":"Availability: a heuristic for judging frequency and probability","volume":"5","year":"1973","journal-title":"Cognitive Psychology"},{"issue":"4157","key":"key2020121322091522100_ref061","doi-asserted-by":"crossref","first-page":"1124","DOI":"10.1126\/science.185.4157.1124","article-title":"Judgment under uncertainty: heuristics and biases","volume":"185","year":"1974","journal-title":"Science"},{"issue":"4481","key":"key2020121322091522100_ref062","first-page":"453","article-title":"The framing of decisions and the psychology of choice","volume":"211","year":"1981","journal-title":"Science, New Series"},{"issue":"4","key":"key2020121322091522100_ref063","first-page":"S251","article-title":"Rational choice and the framing of the decision","volume":"59","year":"1986","journal-title":"The Journal of Business, Part 2: The Behavioral Foundations of Economic Theory"},{"issue":"4","key":"key2020121322091522100_ref064","doi-asserted-by":"crossref","first-page":"297","DOI":"10.1007\/BF00122574","article-title":"Advances in prospect theory: cumulative representation under uncertainty","volume":"5","year":"1992","journal-title":"Journal of Risk and Uncertainty"},{"issue":"3","key":"key2020121322091522100_ref065","doi-asserted-by":"crossref","first-page":"423","DOI":"10.5465\/amr.1989.4279078","article-title":"The concept of fit in strategy research: toward verbal and statistical correspondence","volume":"14","year":"1989","journal-title":"The Academy of Management Review"},{"key":"key2020121322091522100_ref066","volume-title":"Behavioral Finance: Investor Psychology","year":"2012","edition":"1st ed."},{"key":"key2020121322091522100_ref067","volume-title":"Exploring Marketing Research","year":"1991"}],"container-title":["Kybernetes"],"original-title":[],"language":"en","link":[{"URL":"http:\/\/www.emeraldinsight.com\/doi\/full-xml\/10.1108\/K-05-2015-0130","content-type":"unspecified","content-version":"vor","intended-application":"text-mining"},{"URL":"https:\/\/www.emerald.com\/insight\/content\/doi\/10.1108\/K-05-2015-0130\/full\/xml","content-type":"application\/xml","content-version":"vor","intended-application":"text-mining"},{"URL":"https:\/\/www.emerald.com\/insight\/content\/doi\/10.1108\/K-05-2015-0130\/full\/html","content-type":"unspecified","content-version":"vor","intended-application":"similarity-checking"}],"deposited":{"date-parts":[[2025,7,24]],"date-time":"2025-07-24T21:48:07Z","timestamp":1753393687000},"score":1,"resource":{"primary":{"URL":"http:\/\/www.emerald.com\/k\/article\/45\/7\/1052-1071\/263113"}},"subtitle":[],"short-title":[],"issued":{"date-parts":[[2016,8,1]]},"references-count":69,"journal-issue":{"issue":"7","published-print":{"date-parts":[[2016,8,1]]}},"alternative-id":["10.1108\/K-05-2015-0130"],"URL":"https:\/\/doi.org\/10.1108\/k-05-2015-0130","relation":{},"ISSN":["0368-492X"],"issn-type":[{"value":"0368-492X","type":"print"}],"subject":[],"published":{"date-parts":[[2016,8,1]]}}}