Factors Influencing Individual Investor Participation in Stock Market

2021 ◽  
pp. 57-74
Author(s):  
Dorika Jeremiah Mwamtambulo
Keyword(s):  
Stock Market ◽  
Individual Investor ◽  
Factors Influencing

Stock Market Prediction using Data Mining Techniques

2020 ◽  
pp. 310-313
Author(s):  
Karunesh Makker ◽  
Prince Patel ◽  
Hrishikesh Roy ◽  
Sonali Borse
Keyword(s):  
Neural Network ◽  
Stock Market ◽  
Prediction Model ◽  
Efficient Market Hypothesis ◽  
Deterministic System ◽  
Vast Number ◽  
Factors Influencing ◽  
Number Of Factors ◽  
Using Data ◽  
Robust Prediction

Stock market is a very volatile in-deterministic system with vast number of factors influencing the direction of trend on varying scales and multiple layers. Efficient Market Hypothesis (EMH) states that the market is unbeatable. This makes predicting the uptrend or downtrend a very challenging task. This research aims to combine multiple existing techniques into a much more robust prediction model which can handle various scenarios in which investment can be beneficial. Existing techniques like sentiment analysis or neural network techniques can be too narrow in their approach and can lead to erroneous outcomes for varying scenarios. By combing both techniques, this prediction model can provide more accurate and flexible recommendations. Embedding Technical indicators will guide the investor to minimize the risk and reap better returns.

Factors influencing investor behavior: an empirical study of Saudi Stock Market

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Muhammad Junaid Khawaja ◽  
Zainab Nasser Alharbi
Keyword(s):  
Saudi Arabia ◽  
Stock Market ◽  
Individual Characteristics ◽  
Investor Behavior ◽  
Social Implications ◽  
Primary Data ◽  
Past Performance ◽  
Content Type ◽  
Factors Influencing ◽  
The Government

PurposeThe objective of the study is to determine the factors influencing the behavior of investor in Saudi Stock Market.Design/methodology/approachThe paper uses correlation analysis, factor analysis, reliability and multiple regression analysis on the primary data collected from 125 investors in Saudi Stock Market through a questionnaire distributed randomly.FindingsThe results indicate that the factors like past performance of the stocks, financial statements, firm status in industry, the reputation of the firm, and expected corporate earnings have significant influence on the behavior of investors. The factor of the image that a certain company has built for itself over the years on the basis of its financial practices is a large influencer of investor decisions as compared to advocate recommendation factors. The investment behavior is not significantly influenced by gender or age; however, it is significantly influenced by educational qualification, professional experience and investment volume.Research limitations/implicationsThis paper limits itself to study the factors that influence the behavior of investors. However, it does not address the issue of investor overconfidence and its implications for Saudi Stock Market.Practical implicationsThis research provides a road map for the investors interested in making their investment decisions by understanding the most influencing factors.Social implicationsThis research has social implications for government agencies to delineate the required legislation to regulate the investors and also to increase market efficiency. The results show that investors are strongly affected by signals from the government.Originality/valueThis research is an original contribution toward the behavioral finance field in Saudi Arabia and can be used as a reference material for investors, companies and government policymakers in Saudi Arabia. This study incorporates investors' individual characteristics and explores factors that influence investor behavior unlike some previous studies using Saudi data.

scholarly journals Identifying factors influencing on financial risk of construction firms: Evidence from Vietnam stock market

2020 ◽  
pp. 2411-2418 ◽  
Author(s):  
Thi Van Trang Do ◽  
Thi Ha Nguyen ◽  
Thuy Duong Phan ◽  
Thu Hang Dang
Keyword(s):  
Stock Market ◽  
Financial Risk ◽  
Construction Firms ◽  
Factors Influencing

scholarly journals Investor Sentiment in the Stock Market

2007 ◽  
Vol 21 (2) ◽  
pp. 129-151 ◽  
Author(s):  
Malcolm Baker ◽  
Jeffrey Wurgler
Keyword(s):  
Stock Market ◽  
Behavioral Finance ◽  
Stock Prices ◽  
Investor Sentiment ◽  
Cash Flows ◽  
Individual Investors ◽  
Individual Investor ◽  
Top Down ◽  
Limits To Arbitrage ◽  
Future Cash Flows

Investor sentiment, defined broadly, is a belief about future cash flows and investment risks that is not justified by the facts at hand. The question is no longer whether investor sentiment affects stock prices, but how to measure investor sentiment and quantify its effects. One approach is “bottom up,” using biases in individual investor psychology, such as overconfidence, representativeness, and conservatism, to explain how individual investors underreact or overreact to past returns or fundamentals The investor sentiment approach that we develop in this paper is, by contrast, distinctly “top down” and macroeconomic: we take the origin of investor sentiment as exogenous and focus on its empirical effects. We show that it is quite possible to measure investor sentiment and that waves of sentiment have clearly discernible, important, and regular effects on individual firms and on the stock market as a whole. The top-down approach builds on the two broader and more irrefutable assumptions of behavioral finance—sentiment and the limits to arbitrage—to explain which stocks are likely to be most affected by sentiment. In particular, stocks that are difficult to arbitrage or to value are most affected by sentiment.

scholarly journals Factors Influencing Retail Investors’ Trading Behaviour in the Thai Stock Market

2021 ◽  
Vol 15 (2) ◽  
pp. 26-37
Author(s):  
Wilaiporn Paisarn ◽  
Nongnit Chancharat ◽  
Surachai Chancharat
Keyword(s):  
Stock Market ◽  
Financial Markets ◽  
Survey Data ◽  
Demographic Factors ◽  
Developed Markets ◽  
Factors Influencing ◽  
Behavioural Patterns ◽  
Retail Investors ◽  
Overconfidence Bias ◽  
Trading Behaviour

This paper investigates trading behaviour among Thai retail investors in 2016. Using detailed survey data from 491 investors, we examine the characteristics and behavioural patterns that lead to investor bias. Empirical results in the behavioural finance literature indicate that retail investors may not behave reasonably. Behavioural biases may influence investor decisions and affect financial markets. These studies, however, are limited to subsamples of the overall investor groups studied and mainly focus on developed markets. We find that biases are common among investors and that men are more overconfident than women. Moreover, we discover that investors with more experience in trading are less likely to hold their stocks for long periods of time. Further, investors aged 45 and younger hold more diversified portfolios. Another finding is that participants with an income of more than 50,000 Baht a month and/or who employ a number of brokers hold more diversified portfolios. This evidence is consistent with the findings that have been reported for Turkey, India, and Vietnam, indicating that demographic factors are useful for distinguishing between investors in terms of the level of overconfidence bias they exhibit. This result confirms that demographic factors play a role in differentiating and classifying retail investors and should motivate future researchers to consider these factors in their research.

scholarly journals Development of the Organized Securities Market in Uzbekistan

2021 ◽  
Vol 7 (3) ◽  
pp. 236-242
Author(s):  
A. Ibodullaev
Keyword(s):  
Stock Market ◽  
Securities Market ◽  
Development Trends ◽  
Existing Problems ◽  
Factors Influencing ◽  
Main Factors ◽  
Total Stock ◽  
Better Than

The development trends of the organized securities market in Uzbekistan, the main factors influencing the development of the organized market, as well as the trend of joint-stock companies, their issue, existing problems and ways of solving them are described. Based on the data, it can be said that the unorganized securities market in the country is developing better than the organized securities market. The size of the organized stock market does not match the expected share of the total stock market. This, in turn, requires a radical development of this market.

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