Framing Effect and Financial Wellbeing: Role of Investment Behaviors as Mediator


  • Khalil Ur Rehman Wahla PhD Scholar, Faculty of Management Sciences, International Islamic University, Islamabad, Pakistan
  • Hameeda Akhtar Assistant Professor, Faculty of Management Sciences, International Islamic University, Islamabad, Pakistan
  • Syed Zulfiqar Ali Shah Associate Professor, Faculty of Management Sciences, International Islamic University, Islamabad, Pakistan



Framing Effect, Investment Behaviors, Financial Wellbeing


Based on the premise that human beings are not rational agents and are frame dependent while making investment decisions, this study has found a significant impact of framing effect on investment behaviors and financial wellbeing. Structural Equation Modelling is employed in Stata, on the data collected from 344 respondents from Pakistan (299 salaried persons and 45 businessmen), having more than three years’ experience. We supported the view of behavioral finance that framing effect could influence the financial wellbeing negatively. We extended the analysis further by validating the mediating role of investment behaviors between framing effect and financial wellbeing, which is a contribution to the body of knowledge in the field of behavioral finance.


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How to Cite

Khalil Ur Rehman Wahla, Hameeda Akhtar, & Syed Zulfiqar Ali Shah. (2020). Framing Effect and Financial Wellbeing: Role of Investment Behaviors as Mediator. Review of Economics and Development Studies, 5(2), 343-354.