Objective: This study aims to examine how risk tolerance influences the role of overconfidence bias and availability bias in investment decision-making.Because of the complexities of the investment decision-making process, this study attempts to investigate psychological variables in the investment decision-making process.Design/Methods/Approach: This Truck Model Kit study used the Structural Equation Modeling Partial Least Squares (SEM-PLS) analytic approach using the SmartPLS 3 program and survey data provided online to stock investors, with a total of 303 samples obtained.The study applied CMB preventive techniques to decrease common method bias (CMB).
Findings: The results indicate a positive and significant mediating role of risk tolerance on the effect of overconfidence bias and availability bias toward investment decision-making.Originality/Value: This research seeks to explore the process of making investment decisions by taking into account the psychological aspects of investors by using a more comprehensive Bounded rationality theory point of view.This study tested the mediation mechanism of risk tolerance in bridging the influence of heuristic bias on investment decision-making, which has not been explored much by previous studies.Practical/Policy implication: The findings can guide investors to consider how they make biased investment decisions and help investment managers assess the appropriate Military Airplane Model Kit level of investment risk.