The Research of Investment Decision-making Behavior Model under Imperfect Rationality

2012 ◽  
Vol 7 (14) ◽  
pp. 521-527 ◽  
Author(s):  
YANG Weiyi ◽  
JU Xiaofeng
Keyword(s):  
Decision Making ◽  
Investment Decision ◽  
Behavior Model ◽  
Investment Decision Making ◽  
Imperfect Rationality ◽  
Decision Making Behavior

scholarly journals Investors’ Behavior and Perceptions Towards Stock Market: Structural Equation Modeling Approach

2018 ◽  
Vol 7 (4.36) ◽  
pp. 586
Author(s):  
D. Kinslin ◽  
V. P. Velmurugan
Keyword(s):  
Decision Making ◽  
Stock Market ◽  
Structural Equation ◽  
Tamil Nadu ◽  
Investment Decision ◽  
Equation Modeling ◽  
Stock Indices ◽  
Investment Decision Making ◽  
Irrational Behavior ◽  
Decision Making Behavior

Investors’ behavior and perception towards stock indices performances of the stock market was taken into account for this study. Relevant data was collected from 416 equity investors indulged in the stock market situated in diverse parts of southern Tamil Nadu, India. This research focuses on how the investors’ perceptions regarding stock indices movements of stock markets are affected by their irrational behavior, rational behavior and decision making behavior. In this study SEM approach was applied to analyze the data. The observations from the study disclosed that, the hypothesized model has a good fit and indicates that the anticipated model has the adequate fit, by way of satiating the suggested values. The finding indicates that investors are partly rational and partly irrational because they collect complete financial information and use this information for investment decision making and also use short cuts for decision making. 

scholarly journals The Cognitive and Psychological Bias in Investment Decision-Making Behavior: (Evidence From Indonesian Investor’s Behavior)

2018 ◽  
Vol 10 (1) ◽  
pp. 86
Author(s):  
Sri Utami Ady
Keyword(s):  
Decision Making ◽  
Capital Markets ◽  
Cognitive Bias ◽  
Investment Decision ◽  
Investment Decisions ◽  
Interpretive Phenomenology ◽  
Wrong Decision ◽  
Investment Decision Making ◽  
Decision Making Behavior ◽  
Psychological Bias

 The purposes of this research were to understand and analyze the behavior of the psychological bias experienced by investors in making investment decisions. Psychological bias experienced by investors led to wrong decision making and fatal losses. This research used qualitative interpretive phenomenology method to understand the phenomenon of decision making based on the perspective of investors. The result showed that: (1) The phenomenon of cognitive bias and psychological bias behavior occur in nearly all informants, (2) The Psychology bias could be divided by two types, namely: expected emotion bias behavior and immediate emotion bias behavior, (3) experience, knowledge of the capital markets and the management of good emotions determine the level of psychological stability and reduce bias behavior that could be raising the return.

scholarly journals The Cognitive and Psychological Bias in Investment Decision-Making Behavior: (Evidence From Indonesian Investor's Behavior)

2018 ◽  
Vol 10 (1(J)) ◽  
pp. 86-100
Author(s):  
Sri Utami Ady
Keyword(s):  
Decision Making ◽  
Capital Markets ◽  
Cognitive Bias ◽  
Investment Decision ◽  
Investment Decisions ◽  
Interpretive Phenomenology ◽  
Wrong Decision ◽  
Investment Decision Making ◽  
Decision Making Behavior ◽  
Psychological Bias

 The purposes of this research were to understand and analyze the behavior of the psychological bias experienced by investors in making investment decisions. Psychological bias experienced by investors led to wrong decision making and fatal losses. This research used qualitative interpretive phenomenology method to understand the phenomenon of decision making based on the perspective of investors. The result showed that: (1) The phenomenon of cognitive bias and psychological bias behavior occur in nearly all informants, (2) The Psychology bias could be divided by two types, namely: expected emotion bias behavior and immediate emotion bias behavior, (3) experience, knowledge of the capital markets and the management of good emotions determine the level of psychological stability and reduce bias behavior that could be raising the return.

The Decision Behavior of Taiwan Firms Investing in China: Evidence from Different Industries

2012 ◽  
Vol 15 (01) ◽  
pp. 1250002
Author(s):  
Szu-Hsien Lin ◽  
You-Jie Chen ◽  
Tz-Li Wang ◽  
Hung-Chih Wang ◽  
Ya-Chiu Angela Liu
Keyword(s):  
Decision Making ◽  
Information Technology ◽  
Risk Behavior ◽  
Investment Decision ◽  
Risk Propensity ◽  
Past Performance ◽  
Academic World ◽  
Investment Decision Making ◽  
Decision Making Behavior ◽  
Industry Sectors

The main purpose of this paper is to explore Taiwanese firms' risk behavior when investing in China. Firms' investment decision-making in relation to risk propensity may be affected by its (1) aspiration performance, (2) looming bankruptcy, (3) sound operating resource, and/or (4) investment behavior within an industry. There is no reason to believe that a consensus of risk behavior is shared among various industry sectors. Nevertheless, little empirical evidence exists on this issue in the academic world. Apart from risks associated with globalization, firms in Taiwan, unlike those of other nations, face very high political risk owing to the cross-strait political tension with China. Past researchers have taken variables such as innovation or R&D expenditure as proxies in testing the risk behavior of firms, and yet the reliability of these two variables to represent risk behavior remains arguable. The authors use China investment as the proxy for risk behavior of firms in Taiwan to study the decision-making behavior of two groups: One group in electronic and information technology (EIT) industry and another group in the nonelectronic and information technology (nonEIT) industry. Empirical results show that (1) China investment is significantly affected by peer investment; (2) the EIT firms are more aggressive in resource utilization; and (3) R&D expenditure has a significant positive relationship with China investments in Taiwanese firms with strong past performance.

scholarly journals Perceptions and Behavior of Investors Towards Stock Indices Performances in UAE

2019 ◽  
Vol 8 (2S3) ◽  
pp. 110-115
Keyword(s):  
Decision Making ◽  
Stock Market ◽  
Investment Decision ◽  
Financial Information ◽  
Rational Behavior ◽  
Stock Indices ◽  
Investment Decision Making ◽  
Irrational Behavior ◽  
Decision Making Behavior ◽  
And Behavior

Investors’ behavior and perception towards stock indices performances of the stock market was taken into account for this study. Relevant data was collected from 416 equity investors indulged in the stock market situated in diverse parts of UAE. This research focuses on how the investors’ perceptions regarding stock indices movements of stock markets are affected by their irrational behavior, rational behavior and decision making behavior. In this study SEM approach was applied to analyze the data. The observations from the study disclosed that, the hypothesized model has a good fit and indicates that the anticipated model has the adequate fit, by way of satiating the suggested values. The finding indicates that investors are partly rational and partly irrational because they collect complete financial information and use this information for investment decision making and also use short cuts for decision making.

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