The Effect of Gender, Age and Educational Level on Overconfidence and Loss Aversion in Iran's Capital Market

In this article the effects of overconfidence and loss aversion on investors’ decisions in Iran's capital market were investigated in terms of gender, age and educational level. The findings suggest that overconfidence was not significantly correlated with gender, but it showed significant negative and positive correlations with age and educational level, respectively. In addition, no significant correlation was found between loss aversion and gender. However, it showed significant negative and positive correlations with age and educational level, respectively. According to Spearman's correlation test, a significant correlation was found between loss aversion and overconfidence with a correlation coefficient of 0.73 at a significance level of 0.001. According to the results, older people had higher loss aversion and lower overconfidence levels. In addition, a higher educational level led to higher overconfidence and lower risk aversion levels.