scholarly journals Role of Behavioral Finance in Investment Decision – A Study of Investment Behavior in India

2018 ◽  
Vol V (4(6)) ◽  
pp. 39
Author(s):  
Vinay Kandpal ◽  
Rajat Mehrotra
Keyword(s):  
Behavioral Finance ◽  
Investment Decision ◽  
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 Investment Behavior and Trade Returns of Individual Investor: Mediating Role if Financial Literacy

2021 ◽  
Vol 4 (1) ◽  
pp. 199-208
Author(s):  
ZAIN ULLAH ◽  
DR. SHAMS UR RAHMAN ◽  
SOHAIL KHALIL
Keyword(s):  
Behavioral Finance ◽  
Financial Literacy ◽  
Positive Impact ◽  
Investment Decision ◽  
Individual Investors ◽  
Mediating Role ◽  
Good Trade ◽  
Rational Investment ◽  
The Impact

The main objective of current study was to analyze the impact of representativeness and anchoring on the trade returns of individual investors with the mediating role of financial literacy. In this connection hypotheses were developed on the basis of behavioral finance literature. The data was collected on 5-point likert scale questionnaires which were adopted from various authors. The collected data was checked for reliability and correlation analysis and regression models were run. On the basis of results obtained from analysis the four hypotheses which were developed have been accepted. It was concluded that representativeness and anchoring has significant positive impact while the financial literacy has mediating impact on the trade returns of investors. It is recommended that more the financial literacy less risk of behavioral biases impact on investment thus investors should gain financial literacy for taking rational investment decision and good trade returns.

scholarly journals The role of behavioral finance in modern age investment

2016 ◽  
Vol 6 (1) ◽  
pp. 135-149
Author(s):  
Sandeep Singh ◽  
Ashish Nag
Keyword(s):  
Behavioral Finance ◽  
Loss Aversion ◽  
Investment Decision ◽  
Decision Making Process ◽  
Past Performance ◽  
Modern Age ◽  
Cognitive Illusions ◽  
Regret Aversion ◽  
Cognitive Illusion

Decision making process is very complex task that involves various activities like industry and company analysis along with analysis of past performance of individual stocks/assets. Asunder from this, one of the most important factors that influence the individual's investment decision is cognitive illusions. Individual investor‘s behavior is influenced by various heuristic and biases, which are brought to light by the emerging field of behavioral finance. This paper provides aconceptual framework of the various principles of Behavioral Finance including cognitive illusion: Heuristics, Overconfidence, Representativeness, Anchoring, Gambler's Fallacy,Prospect Theory, Loss Aversion, Regret Aversion, Mental Accounting and Disposition Effect.

The role of affective reactions on investment decision-making

2007 ◽  
Author(s):  
Enrico Rubaltelli ◽  
Giacomo Pasini ◽  
Rino Rumiati ◽  
Paul Slovic
Keyword(s):  
Decision Making ◽  
Investment Decision ◽  
Affective Reactions ◽  
Investment Decision Making

scholarly journals Chinese and Indian FDI in Hungary and the role of Eastern Opening policy

2021 ◽  
Author(s):  
Katalin Völgyi ◽  
Eszter Lukács
Keyword(s):  
Renewable Energy ◽  
Location Choice ◽  
Investment Decision ◽  
Energy Sector ◽  
Foreign Direct Investments ◽  
Automotive Sector ◽  
Supportive Services ◽  
High Ranking ◽  
Strategic Cooperation

AbstractThe aim of this paper is to assess the main features of Chinese and Indian investments in Hungary and the role of the Hungarian Government’s Eastern Opening policy in the attraction of investments from these two Asian giants. This paper covers the sectoral distribution, modes of market entry, and motivations of Chinese and Indian foreign direct investments. The automotive sector is the most attractive sector for investors from both countries. ICT manufacturing (electronics) and services, and the renewable energy sector are also very attractive for Chinese companies. The same is true for IT/BPO services and the chemical sector in the case of Indian companies. Chinese and Indian companies enter the Hungarian economy mainly through green-field investments or acquisitions. Market-seeking and strategic asset-seeking motives are dominant in the case of investors from both countries. This paper also puts a special emphasis on studying the impacts of Hungary’s Eastern Opening policy (launched in 2012) on Chinese and Indian investments. The findings show that the Eastern Opening policy has had a significant impact on the investment decision (location choice) of new Chinese and Indian investors and further expansion of investments by Chinese and Indian companies located in Hungary due to four factors, namely high-ranking political meetings, strategic cooperation agreements, cash grants from the Hungarian Government and supportive services of HIPA.

scholarly journals Environment and Potential Affecting Investment Decision for Accommodation Business: Case of Less Visited Area in Samut Songkhram and Phatthalung Province

2021 ◽  
Vol 58 (2) ◽  
pp. 1706-1717
Author(s):  
Krisada Sungkhamanee, Piyadhida Sungkhamanee
Keyword(s):  
Financial Literacy ◽  
Investment Decision ◽  
Investment Decisions ◽  
Business Case ◽  
Potential Factors ◽  
Short Term Investment ◽  
The Impact ◽  
Moderating Role

Investment decisions have great importance in different sectors of various countries and these decisions are the basis on which the outcomes of the investments are based. However, there might be certain factors that might lead to the incorrect long term and short term investment decisions. In this regard, the current study has been conducted with the core motive to explore the impact casted by the environment and potential factors i.e. salience and overconfidence on the long term investment decisions for accommodation business along with the moderation of a variable i.e. financial literacy. To fulfill this objective, the researcher has collected data from the investors of accommodation businesses in Thailand. The collected data has been subjected to different statistical techniques and tools for analysis purpose and the results have been obtained. The results obtained by the analysis of the collected data indicate that salience and overconfidence have significant impact on the long term investment decision. In addition, the moderating role of financial literacy has also been found as significant in the study. The results suggest that the investors of the accommodation business must consider the aspects of salience and overconfidence before taking any long term investment decision to avoid failure of the investment decision.    

scholarly journals Factor Influencing Investor’s Decision Making in Indonesia: Moderating the Role of Locus of Control

2020 ◽  
pp. 49-56
Author(s):  
Febria Nalurita ◽  
Farah Margaretha Leon ◽  
Hamdy Hady
Keyword(s):  
Decision Making ◽  
Locus Of Control ◽  
Loss Aversion ◽  
Structural Equation ◽  
Investment Decision ◽  
Equation Modeling ◽  
Investment Decision Making ◽  
Market Factors ◽  
Regret Aversion

This study aims to investigate the effect of loss aversion, regret aversion, and market factors, on investment decision making with the moderating role of locus of control. Data collection is done by distributing questionnaires. The survey was conducted on individual investors in the Indonesia Stock Exchange in Jakarta to obtain a sample of 281. This research uses the Structural Equation Modeling approach. The statistical tool used is LISREL 8.8. This study found that loss aversion, regret aversion, and market factors significantly influence investment decision making. Locus of control plays the role of moderation between loss aversion, regret aversion, market factors, and investment decision making. The novelty in this study reveals the research that needs to be done to encourage investors to make rational decisions and control the required rate of returns through their locus of control. This research helps investors to make decisions logically and rationally with an open mind, high-performance thoughts and positive actions for investment goals that produce positive returns.

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