Open Access Open Access  Restricted Access Subscription Access
Open Access Open Access Open Access  Restricted Access Restricted Access Subscription Access

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
     

   Subscribe/Renew Journal


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).
Subscription Login to verify subscription
User
Notifications
Font Size


  • Barber, Brand M., and Odean, Terrance. (1999). FinancialAnalysts Journal 55(6).
  • Barberis, Nicholas. And Thaler, Richard.(2003). A Survey of Behavioural finance . Handbook of the Economics of Finance. Elsevier Science .1054-1056.
  • Chandra Abhijit. (2008). Decision making in the stock market : Incorporating Psychology with Finance. New Delhi.
  • Chen, Gongmeng, kim, Kenneth A., Nofsinger, John R., and Rui, Oliver M. (2007). Trading performance, Disposition effect, overconfidence, representativeness bias, and experience of Emerging Maket Investors. http://papers.ssrn.com/sol3/papers.cfm?abstract_id=957504.
  • Cianci, Anna M. (2008). The Impact of Investor Status on Investors’ Evaluation of Negative and positive , separate and combined information. The journal of Behavioral finance. 117-131.
  • Gilovich, Thomas, Griffin, Dale., and Kahneman, Daniel. (2002). Heuristics and Biases : The psychology of Intuitive Judgement. Cambridge : Cambrige University Press.
  • Maheran, Nik., Muhammad, Nik.,Imail, Nurazleena. (2008). Investment Decision Behavior: Does Investors rational or Irrational? Faculty of business Management, Mara University of Technology, Malaysia.
  • Pompian Michael M. (2006). Behavioural Finance and wealth Management . USA: John wiley & sons.
  • Sewell, Martin. (2007). Behavioural Finance. http://www.Behaviouralfinance.net/behavioural finance.pdf.
  • Thaler, R. & Shefrin, H. (1981). An economic theory of self-control, Journal of political economy, 89(2).
  • Waweru, Nelson Maina., Munyoki, Evelyne ., and Uliana, Enrico. (2008). The effect of behavioural factors in investment decision making: a survey of institutional investors operating at the Nairobi Stock Exchange. International Journal of Business and Emerging Market . 1 (1) : 24-41.

Abstract Views: 100

PDF Views: 0




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

Abstract Views: 100  |  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