Tesfa Nega (PhD)Mahlet Amare2026-03-032026-03-032025-09https://etd.aau.edu.et/handle/123456789/7755corporate investments. This study employed a quantitative research approach using a cross-sectional survey design to examine the influence of behavioral factors on corporate investment decisions in selected private banks. Data were collected through structured questionnaires administered to employees in corporate departments, and analyzed using descriptive statistics, correlation, and multiple regression techniques with SPSS. Data collected from 100 respondents reveal varied levels of participation: 29% are currently involved in corporate investments, 49% plan to participate in the future, while 22% remain unaware of share investment opportunities. The findings highlight the significant influence of past price trends and recent asset performance on investment decisions, with 51% to 61% of respondents agreeing that these factors guide their forecasts and choices. Behavioral biases consistent with Prospect Theory emerge clearly. After experiencing losses, 39% of investors exhibit risk aversion, whereas 62% display increased risk-taking following gains. Mental accounting is prevalent, as 65% of respondents segregate their finances into distinct mental accounts, 82% assign specific purposes to these accounts, and 74% track them separately. However, only 11% disregard the connections between different accounts, indicating most investors recognize the interrelated nature of their finances. Social influences significantly affect decision-making: 55% of respondents report that other investors’ funding choices impact their own, and 58% consider close friends and relatives as trusted sources of investment advice. Investor preferences tend toward stability and risk management, with 43% favoring stable, low-risk investments, 35% opting for diversified portfolios, and 42% focusing on long-term growth strategies. Despite these preferences, investors face notable challenges impeding effective participation. Insufficient capital (51%), limited market knowledge (35%), fear of losses (22%), and time constraints (19%) are the primary barriers identified. These insights underscore the complex behavioral finance dynamics shaping investment behavior and highlight the need for tailored investor education, support systems, and behavioralen-USBehaviorcorporatefinanceinvestorpreference theoryThesis