{"id":441,"date":"2026-03-17T14:45:47","date_gmt":"2026-03-17T14:45:47","guid":{"rendered":"https:\/\/ijeti.uniben.edu\/?p=441"},"modified":"2026-03-17T14:45:48","modified_gmt":"2026-03-17T14:45:48","slug":"influence-of-behavioural-bias-on-investment-decisions-among-pension-fund-administrators-in-nigeria-the-moderating-role-of-risk-tolerance","status":"publish","type":"post","link":"https:\/\/ijeti.uniben.edu\/index.php\/2026\/03\/17\/influence-of-behavioural-bias-on-investment-decisions-among-pension-fund-administrators-in-nigeria-the-moderating-role-of-risk-tolerance\/","title":{"rendered":"Influence of Behavioural Bias on Investment Decisions among Pension Fund Administrators in Nigeria: The Moderating Role of Risk Tolerance"},"content":{"rendered":"\n

1<\/sup><\/a>Unyime, Abasido ANTHONY, 2<\/sup><\/a>Professor Mu\u2019azu Saidu Badara, 3<\/sup><\/a>Professor A. B. Dogarawa & 4<\/sup><\/a>Muhammed Yazeed<\/h1>\n\n\n\n

 <\/h1>\n\n\n\n

1<\/sup>Department of Business Administration and Management, Federal Polytechnic Daura.<\/strong><\/p>\n\n\n\n

2&3<\/sup>Department of Accounting, Ahmadu Bello University, Zaria.<\/strong><\/p>\n\n\n\n

4<\/sup>Department of Business Administration, Ahmadu Bello University, Zaria.<\/strong><\/p>\n\n\n\n

Correspondence Email Address:  <\/strong>unyimeaa@fedpolydaura.edu.ng<\/strong><\/a><\/strong><\/p>\n\n\n\n

Abstract<\/strong><\/p>\n\n\n\n

Investment decision-making is a vital aspect of financial management, directly shaping resource allocation, long-term growth, and organizational performance. However, such decisions are often affected by behavioural biases, even among institutional investors like Pension Fund Administrators (PFAs). A quantitative research design was employed, with data gathered from 106 respondents across 22 licensed PFAs in Nigeria.<\/em> This study focuses on two specific biases\u2014Status-Quo Bias and Disposition Effect\u2014and examined their effect on the investment decisions of PFAs in Nigeria. Status-quo bias reflects a reluctance to change existing investments, while disposition effect involves holding on to losing assets and prematurely selling profitable ones. Drawing on Prospect Theory and Disappointment Theory, the study also investigated the mediating role of risk tolerance in these relationships. Data were collected from licensed PFAs using a structured survey and analyzed through Structural Equation Modeling (SEM). The findings show that both status-quo bias and disposition effect significantly influence investment decisions, often leading to sub-optimal outcomes. Furthermore, risk tolerance significantly mediates these effects, indicating that PFAs with higher risk tolerance are more likely to counteract these behavioural tendencies. The study underscores the importance of behavioural awareness, regular risk profiling, and structured decision-making frameworks within the pension fund sector. It offers practical recommendations for improving decision quality, with implications for PFAs, regulators, and policymakers aiming to enhance the efficiency and stability of Nigeria\u2019s pension investment landscape.<\/em><\/p>\n\n\n\n

Keywords<\/strong>: Risk Tolerance, Status-Quo Bias, Disposition Effect, Pension Fund Administrator<\/p>\n\n\n\n

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Download<\/a><\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

1Unyime, Abasido ANTHONY, 2Professor Mu\u2019azu Saidu Badara, 3Professor A. B. Dogarawa & 4Muhammed Yazeed   1Department of Business Administration and Management, Federal Polytechnic Daura. 2&3Department of Accounting, Ahmadu Bello University, Zaria. 4Department of Business Administration, Ahmadu Bello University, Zaria. Correspondence Email Address:  unyimeaa@fedpolydaura.edu.ng Abstract Investment decision-making is a vital aspect of financial management, directly shaping […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8],"tags":[],"class_list":["post-441","post","type-post","status-publish","format-standard","hentry","category-2-2-june-25"],"_links":{"self":[{"href":"https:\/\/ijeti.uniben.edu\/index.php\/wp-json\/wp\/v2\/posts\/441","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ijeti.uniben.edu\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ijeti.uniben.edu\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ijeti.uniben.edu\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/ijeti.uniben.edu\/index.php\/wp-json\/wp\/v2\/comments?post=441"}],"version-history":[{"count":1,"href":"https:\/\/ijeti.uniben.edu\/index.php\/wp-json\/wp\/v2\/posts\/441\/revisions"}],"predecessor-version":[{"id":444,"href":"https:\/\/ijeti.uniben.edu\/index.php\/wp-json\/wp\/v2\/posts\/441\/revisions\/444"}],"wp:attachment":[{"href":"https:\/\/ijeti.uniben.edu\/index.php\/wp-json\/wp\/v2\/media?parent=441"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ijeti.uniben.edu\/index.php\/wp-json\/wp\/v2\/categories?post=441"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ijeti.uniben.edu\/index.php\/wp-json\/wp\/v2\/tags?post=441"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}