Global Journal of Research in Management

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The Existence of Behavioural Factors among Individual Investors for Investment Decision in Stock Market:Evidence from Indian Stock Market


Affiliations
1 V.B. shah institute of Management, Veer Narmad South Gujarat University (V.N.S.G.U), Surat, India
2 Department of Business & Industrial Management, Veer Narmad South Gujarat University, Surat, India
     

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Generally classical economics&financial theories consider people to be rational. CAPM, EHM etc. theories are also based on this assumption. But so many times , this assumption has been challenged. After looking anomalies in financial market, classical theories are put under the challenge for assumption of rationality. Behaviour finance integrates economic principles with psychological influences of human behaviour in the investment decision. The main purpose of study is to explore which behavioural factors influencing individual investors' decision at Indian stock market. This study also tries to find out the correlation between these behaviour factors and investment performance. Study also finds out correlation between behaviour factors and investment decision&investment strategies. This research covers certain factors like representativeness, overconfidence, anchoring, gambler's fallacy, hot hand fallacy, regret, cognitive bias, herding, etc. Primary data for analysis was gathered by preparing questionnaire & distributing among investors. Result obtained by covering sample of 60 respondents.

Keywords

Behaviour Finance, Investment Decision, Indian Stock Market (BSE and NSE).
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  • The Existence of Behavioural Factors among Individual Investors for Investment Decision in Stock Market:Evidence from Indian Stock Market

Abstract Views: 255  |  PDF Views: 0

Authors

Swati Mehta
V.B. shah institute of Management, Veer Narmad South Gujarat University (V.N.S.G.U), Surat, India
Jaydip Chaudhari
Department of Business & Industrial Management, Veer Narmad South Gujarat University, Surat, India

Abstract


Generally classical economics&financial theories consider people to be rational. CAPM, EHM etc. theories are also based on this assumption. But so many times , this assumption has been challenged. After looking anomalies in financial market, classical theories are put under the challenge for assumption of rationality. Behaviour finance integrates economic principles with psychological influences of human behaviour in the investment decision. The main purpose of study is to explore which behavioural factors influencing individual investors' decision at Indian stock market. This study also tries to find out the correlation between these behaviour factors and investment performance. Study also finds out correlation between behaviour factors and investment decision&investment strategies. This research covers certain factors like representativeness, overconfidence, anchoring, gambler's fallacy, hot hand fallacy, regret, cognitive bias, herding, etc. Primary data for analysis was gathered by preparing questionnaire & distributing among investors. Result obtained by covering sample of 60 respondents.

Keywords


Behaviour Finance, Investment Decision, Indian Stock Market (BSE and NSE).

References