A Behavioral Finance Analysis on ETF Investment Behavior

2014 ◽  
Author(s):  
Yang Xu ◽  
Kaijian He ◽  
Lo Ka Kuen Kenneth ◽  
Kin Keung Lai
Keyword(s):  
Behavioral Finance ◽  
Investment Behavior

scholarly journals A Study on The Behavioural Aspects of Retail Investors for Investment Decision Making in Telangana State

2016 ◽  
Vol 1 (1) ◽  
pp. 51-59
Author(s):  
Jhansi Rani Boda ◽  
G. Sunitha ◽  
Parag Ray
Keyword(s):  
Decision Making ◽  
Behavioral Finance ◽  
Investment Decision ◽  
Investment Behavior ◽  
Behavioral Patterns ◽  
Behavioral Factors ◽  
Investment Decision Making ◽  
Retail Investors ◽  
Telangana State ◽  
Behavioural Aspects

Objective - Investment is the commitment of funds which have been saved from the current consumption with an expectation of favorable future returns. Investment behavior is concerned with choices made about the purchase of a significant number of securities for an individual or institutional account. Individual investment behavior is relatively a new area of research in behavioral finance. This study aims to identify the various behavioral patterns of retail investors and their investment decision making in the newly formed Telangana state of India. Methodology/Technique - Data were collected from a sample of 200 retail investors via a structured questionnaire. Factor analysis was then conducted to critically identify the behavioral patterns of the retail investors. Findings - The findings of this study indicate that the two behavioral factors of Heuristics and Prospect have significant impact on the investment decision making attitudes of the retail investors. Novelty - As a newly formed state in India, the Telangana state provides potential investment opportunities for retail as well as institutional investors. It is thus, highly imperative to explore how retail investors make investment decisions especially in the newly formed Telangana State in India Type of Paper: Empirical Keywords: Behavioral Factors; Behavioral Finance; Investment Behavior; Investment Decision Making; Retail Investor.

Behavioral Finance: A Paradigm Shift

2016 ◽  
Vol 2 (4) ◽  
Author(s):  
Arti Yadav ◽  
Sania Mushahid
Keyword(s):  
Behavioral Finance ◽  
Paradigm Shift ◽  
Investment Decision ◽  
Market Mechanism ◽  
Investment Behavior ◽  
Cognitive Errors ◽  
Investment Environment ◽  
Irrational Behavior ◽  
Market Inefficiency ◽  
In The Beginning

The evaluation of behavioral finance attempts to better understand and explain how emotions and cognitive errors influence investors and the decision making process. This study gives an overview of the concept of classical finance and behavioral finance in the beginning and thereafter throws light upon the need and origin of behavioral finance. This paper also presents that how behavioral finance can help investors and financial analysts to better understand the market mechanism of functioning as well as the investment behavior of the stakeholders to this process. Behavioral finance is not a replacement to the classical finance paradigm, but an alternative solution to explain the market inefficiency and the irrational behavior of investor. Also investment decision is seen as a result of an interaction between the investor and the investment environment.

scholarly journals Persistence of Beliefs in an Investment Experiment

2012 ◽  
Vol 02 (01) ◽  
pp. 1250005 ◽  
Author(s):  
K. Jeremy Ko ◽  
Zhijian (James) Huang
Keyword(s):  
Behavioral Finance ◽  
Investment Behavior ◽  
Prior Beliefs ◽  
New Information ◽  
Survey Responses

A number of behavioral finance theories posit that investors adhere to prior beliefs in spite of new information. This paper reports the results of an investment experiment which shows that subjects' inferences are biased by their prior beliefs in a manner that depends on investment outcomes. Specifically, survey responses and investment behavior indicate that subjects' perception of new information was more positively biased for their previously favored assets when incurring losses than gains. This asymmetric bias may help explain empirical patterns such as loser momentum and suggests modifications to models of belief persistence in markets.

scholarly journals A STUDY OF THE INVESTMENT BEHAVIOR BASED ON BEHAVIORAL FINANCE

2015 ◽  
Vol 10 (1) ◽  
Author(s):  
Yu Zhang ◽  
Xiaosong Zheng
Keyword(s):  
Research Methods ◽  
Behavioral Finance ◽  
Investment Strategy ◽  
Investment Behavior ◽  
Market Anomalies ◽  
Behavioral Psychology ◽  
Traditional Market ◽  
Behavior Finance ◽  
Finance Theory ◽  
Selection Of

Behavior finance introduces psychology, sociology and other research methods into the study of investment behavior to explain how investors handle the information and take actions. This paper presents the literatures as theoretical solutions to the market anomalies of the traditional market theories. The behavioral psychology is examined through the study on the questionnaire of Chinese security investors. The results show that the investors are not always adopt rational behaviors as traditional finance theory assumed, but make a lot of irrational decisions based on individual cognitive and prejudices, even institutional investors often show the characteristic of irrational. In the guidance of the behavioral finance theory, the research will be closer to the reality and give more significant insight to the selection of investment strategy and psychology characteristic used to explain market anomalies.

INVESTMENT BEHAVIOR OF THE POPULATION IN THE GLOBAL TURBULENCE

2021 ◽  
Vol 16 (3) ◽  
pp. 166-182
Author(s):  
A.V. POLYANIN ◽  
◽  
O.V. POPOVA ◽  
K.A. SUROVNEVA ◽  
◽  
...  
Keyword(s):  
Behavioral Finance ◽  
Large Scale ◽  
Theoretical Research ◽  
Federal State ◽  
Investment Behavior ◽  
Financial Risks ◽  
Economic Relations ◽  
Economic Method ◽  
Logical Method ◽  
The Subject

The main aim of the study is to develop the concept of behavioral finance in the context of the transformation of the investment behavior of individuals in times of global or national turbulence of the socio-economic situation. The subject of the study is a module of socio-economic relations that arises in the process of large-scale crises and shocks in the market of the retail segment of the financial sector of the economy. Research design: the theoretical research is based on papers of the behavioral finance classics, as well as the research of modern domestic and foreign literature. The empirical basis for the application of the statistical-economic method was the official data of The Federal State Statistics Service, Moscow Exchange, Expert RA, etc. The conducted research based on the application of the abstract-logical method allowed us to consider our own conclusions and clarify promising areas for further research. Results: the investment behavior of households during periods of global turbulence is analyzed; specific features of investment behavior and investment potential of Russian citizens are identified; the trend of investment preferences of domestic households during the COVID-19 pandemic is thoroughly studied. Pointing out the transformation of investment behavior of the population that creates prerequisites for the growth of financial risks; promising areas of research of investment behavior of the population during periods of turbulence of various genesis are formulated.

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