Personality traits and irrational decision-making of individual investors: evidence from India using PLS-SEM approach

2021 ◽  
Vol 23 (1) ◽  
pp. 1
Author(s):  
Balaji Kanagasabai ◽  
Vaneeta Aggarwal
Keyword(s):  
Decision Making ◽  
Personality Traits ◽  
Individual Investors

Segments Influencing Individual Investors Behavior And Their Investment Decision

2019 ◽  
Vol 118 (9) ◽  
pp. 154-160
Author(s):  
Dr. Kartikey Koti
Keyword(s):  
Decision Making ◽  
Social Factors ◽  
Stock Markets ◽  
Investment Decision ◽  
Individual Investors ◽  
Factors Affecting ◽  
The Social ◽  
Karnataka State ◽  
Essential Idea

The essential idea of this assessment is investigate the social factors affecting particular theorists' decisions making limit at Indian Stock Markets. In the examination coordinated standard of direct is Classified subject to two estimations the first is Heuristic (Decision making) and the resulting one is prospect.. For the assessment coordinated the data used is basic natured which is assembled through a sorted out survey from 100 individual money related authorities based out in Hubli and Dharwad city, Karnataka State in India on an accommodating way. The respondents were both sex and overwhelming part male were 68% . These theorists were having a spot with the age bundle between35-45 which is 38%. These respondents have completed their graduation were around 56%. These respondents had work inclusion of 5 to 10 years which is 45% and the majority of which were used in government portion which is 56%. Their compensation was between 4 to 6 Lakh and were fit for placing assets into business areas. The money related experts were widely masterminded placing assets into different portfolios like 32% in Share market and 20 % in Fixed store. These examiners mode to known various endeavor streets were through News, family and allies.  

An Analysis of the Demand for Reporting on Internal Control

2000 ◽  
Vol 14 (3) ◽  
pp. 325-341 ◽  
Author(s):  
Heather M. Hermanson
Keyword(s):  
Decision Making ◽  
Financial Reporting ◽  
Internal Control ◽  
Operational Definition ◽  
Financial Statement ◽  
Individual Investors ◽  
Internal Auditors ◽  
Additional Information ◽  
User Groups ◽  
Definition Of

The purpose of this study is to analyze the demand for reporting on internal control. Nine financial statement user groups were identified and surveyed to determine whether they agree that: (1) management reports on internal control (MRIC) are useful, (2) MRICs influence decisions, and (3) financial reporting is improved by adding MRICs. In addition, the paper examined whether responses varied based on: (1) the definition of internal control used (manipulated as broad, operational definition vs. narrow, financial-reporting definition) and (2) user group. The results indicate that financial statement users agree that internal controls are important. Respondents agreed that voluntary MRICs improved controls and provided additional information for decision making. Respondents also agreed that mandatory MRICs improved controls, but did not agree about their value for decision making. Using a broad definition of controls, respondents strongly agreed that MRICs improved controls and provided a better indicator of a company's long-term viability. Executive respondents were less likely to agree about the value of MRICs than individual investors and internal auditors.

Personality, Social Identity, and Individual Differences in Multinational Decision-Making

2017 ◽  
Vol 61 (1) ◽  
pp. 848-852
Author(s):  
Gerald Matthews ◽  
Lauren Reinerman-Jones ◽  
Shawn Burke ◽  
Grace Teo ◽  
David Scribner
Keyword(s):  
Decision Making ◽  
Individual Differences ◽  
Social Identity ◽  
Personality Traits ◽  
Multicultural Competence ◽  
Multivariate Analyses ◽  
Sociocultural Factors ◽  
Military Operations ◽  
The Us ◽  
Multiple Samples

Contemporary military operations require the US to partner with coalition nations, so that commanders must make effective decisions for multinational teams. The effectiveness of decision-making may depend on various factors. General decision-making competence and personality traits that promote interpersonal functioning may be advantageous in the team context. Sociocultural factors such as a strong nationalistic social identity may be harmful to decision-making in multinational teams. The current study ( N=696) examined correlates of a Situation Judgment Test (SJT) for multicultural decision-making ability in multiple samples. Predictors of better SJT performance included general decision-making ability, low nationalism, and various personality traits. Multivariate analyses discriminated multiple, independent predictors. Findings suggest assessment of the various strengths and weaknesses that shape the individual’s decision-making may inform training for multicultural competence.

Kenneth Fisher’s heuristics

2016 ◽  
Vol 8 (2) ◽  
pp. 130-148
Author(s):  
Carlo Massironi ◽  
Giusy Chesini
Keyword(s):  
Decision Making ◽  
Conceptual Analysis ◽  
Investment Decision ◽  
Real Life ◽  
Human Action ◽  
Theory Of Knowledge ◽  
Constructivist Theory ◽  
Individual Investors ◽  
Content Type ◽  
Radical Constructivist

Purpose The authors are interested in building descriptive – real life – models of successful investors’ investment reasoning and decision-making. Models designed to be useful for trying to replicate and evolve their reasoning and decision-making. The purpose of this paper, a case study, is to take the substantial material – on innovating the investing tools – published in four books (2006/2012, 2010, 2011, 2015) by a US stock investor named Kenneth Fisher (CEO of Fisher Investments, Woodside, California) and sketch Fisher’s investment innovating reasoning model. Design/methodology/approach To sketch Fisher’s investment innovating reasoning model, the authors used the Radical constructivist theory of knowledge, a framework for analyzing human action and reasoning called Symbolic interactionism and a qualitative analytic technique called Conceptual analysis. The authors have done qualitative research applied to the study of investment decision-making of a single professional investor. Findings In the paper, the authors analyzed and described the heuristics used by Fisher to build subsequent generations of investing tools (called by Fisher “Capital Markets Technology”) to try to make better forecasts to beat the stock market. The authors were interested in studying the evolutive dimensions of the tools to make forecasts of a successful investor: the “how to build it” and “how to evolve it” dimension. Originality/value The paper offers an account of Kenneth Fisher’s framework to reason the innovation of investing tools. The authors believe that this paper could be of interest to professional money managers and to all those who are involved in the study and development of the tools of investing. This work is also an example of the use of the Radical constructivist theory of knowledge, the Symbolic interactionist framework and the Conceptual analysis to build descriptive models of investment reasoning of individual investors, models designed to enable the reproduction/approximation of the conceptual operations of the investor.

Investigating association between factors fostering attention to a stock and rationales to buy it: an empirical analysis

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ripsy Bondia ◽  
Pratap C. Biswal ◽  
Abinash Panda
Keyword(s):  
Decision Making ◽  
Categorical Data ◽  
Categorical Variables ◽  
Individual Investors ◽  
Multiple Response ◽  
Individual Investor ◽  
Test Statistic ◽  
Chi Square ◽  
Content Type ◽  
First Order

PurposeCan something that drives our initial attention toward a stock have any implications on final decision to buy it? This paper empirically and statistically tests association, if any, between factors fostering attention toward a stock and rationales to buy it.Design/methodology/approachThis paper uses survey responses of individual investors involving multiple response categorical data. Association between attention fostering factors and rationales is tested using a modified first-order corrected Rao-Scott chi-square test statistic (to adjust for within-participant dependence among responses in case of multiple response categorical variables). Further, odds ratios and mosaic plots are used to determine the effect size of association.FindingsStrong association is seen between attention fostering factors and rationales to buy a stock. Further, strongest associations are seen in cases where origin is the same underlying influencing factor. Some of the most cited attention fostering factors and rationales in this research stem from familiarity bias and expert bias.Practical implicationsWhat starts as a trivial attention fostering factor, which may not even be recognized by majority investors, can go on to become one of the rationales for buying a stock. This can result in substantial financial implications for an individual investor. Investor education agencies and regulatory authorities can make investors cognizant of such association, which can help investors to improve and adjust their decision making accordingly.Originality/valueThe extant literature discusses factors/biases influencing buying decisions of individual investors. This research takes a step ahead by distinguishing these factors in terms of whether they play role of (1) fostering attention toward a stock or (2) of reasons for ultimately buying it. Such dissection of factors/biases, to the best of authors' knowledge, has not been done previously in any empirical and statistical analysis. The paper uses multiple response categorical data and applies a modified first-order corrected Rao-Scott chi-square statistic to test association. Application of the above-mentioned test statistic has not been done previously in context of individual investor decision-making.

scholarly journals The effect of acute alcohol intoxication on risk attitude

2021 ◽  
Author(s):  
◽  
Kayleigh McCarty
Keyword(s):  
Decision Making ◽  
Personality Traits ◽  
Risk Taking ◽  
Alcohol Intoxication ◽  
Risk Attitude ◽  
Strong Relationship ◽  
Alcohol Problems ◽  
Acute Alcohol Intoxication ◽  
Placebo Condition ◽  
Risk Taking Behaviors

There is a strong relationship between engaging in risk taking behaviors, or behaviors with a high probability of negative and undesirable consequences, and the use of alcohol and other substances of abuse. Mounting evidence suggests that dysfunctional decision making contributes to the development and maintenance of addiction and related behaviors. This study explored the effects of acute alcohol intoxication on decision making under risk. Regular drinkers were recruited for a within subjects, placebo controlled, alcohol administration study. They completed a decision-making task at peak alcohol intoxication and at a time matched assessment in a placebo condition, as well as several baseline measures. The aim of this study was to examine whether alcohol intoxication impacts risk attitude. The associations between risk attitude and related personality traits, problematic alcohol use, and alcohol related risk-taking behaviors were also tested. The results of the study suggest that intoxicated risk attitude, and not risk attitude in the placebo condition, is associated with indices of alcohol consumption and to a lesser extent, alcohol consequences. Alcohol intoxication did not significantly impact risk attitude classification. Risk attitude was not associated with impulsive personality traits, alcohol expectancies, or risk-taking behaviors. While risk attitude may have utility for identifying those who are at risk for alcohol problems, tasks designed to assess behavior specific decision processes may be useful for understanding risky patterns of decision making.

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