AN ANALYSIS OF INVESTMENT DECISION PROCESS IN SELECTED BUSINESSES IN YOLA METROPOLIS: THE BEHAVIOURAL FINANCE THEORY APPROACH (original) (raw)

A Study of the Investor's Behaviour in Making Investment Decisions with A Special Focus on Mumbai

IPE Journal of management, 2020

Behavioural finance is a study that reviews how psychological factors influence investment decisions under unpredictable conditions. It is one of the most significant subjects which make us think about the outlook of individuals when they consider different factors while allocating resources into different investment approaches. We attempted to evaluate the attitudes of individuals when making investment decisions in various investment avenues through this study. But the questions that arise are-What do they think while investing? How do they take investment decisions? Is their decision biased and gets influenced? This paper tries to discover the significant impact of certain behavioural finance decisions like, individuals' overconfidence, interpretation, and representative, anchoring cognitive dissonance, regret aversion, narrow framing, and mental accounting in investment decisions. The study is done by collecting primary research data through a structured questionnaire and a sample of 108 investors was taken from the mumbai region. Though the main objective of the study is finding the impact and importance of behavioural finance in investors' investment decisions, as well as the study of different factors affecting investment decisions and the analysis of investors' attitudes and psychology toward investing, are the other objectives of our study.

A STUDY ON BEHAVIOURAL FINANCE INVESTMENT DECISIONS OF INVESTORS IN BANGALORE

The field of behavioural finance analyses the effects of mental factors on financial decisions including risk. If you want to know how people think about money and investments, you need to study behavioural finance. People's attitudes about investing were uncovered through this study. Hence, their views on financial investing. Overconfidence, perception, representative, anchoring cognitive dissonance, regret aversion, limited framing, and mental accounting are only few of the behavioural finance concepts that are discussed in this article, along with their effects on stock market investor decision making. In order to poll 181 Bangalore investors, we employed a conventional questionnaire. The primary focus was on learning how behavioural financing influences investors and their investment choices. Our secondary objective was to study behavioural finance and investor psychology.

STUDY ON INVESTOR BEHAVIOURAL FINANCE IN INVESTMENT DECISION MAKING – IN TIRUCHIRAPPALLI.

Since the economic liberalization there is an increase in number of investment avenues for decision making of investment, It focuses upon how investor interprets and acts on information to take investment decisions it explains that individuals do not always act rationally in their financial decisions and that their behaviours cause them to make different choices about their financial decisions. Investment decisions also depends on the types of investors, risk tolerance capacity, education, occupation, age, sex, income, living area and environment and attachment with the financial advisor etc. This study indicates that there is a significant role of income and occupation in investment avenue selection by the male and female investors. For this an organized analysis has been made by taking primary data collected through structured questionnaire and secondary data for consideration.

“Relevance of Behavioural Finance in Investor’s Decision Making Process”

2018

Behavioural Finance is an evolving field that studies how psychological factors affect decision making under uncertainty. Investors are always assumed to be rational thinkers as per the traditional economic theories but they do not act rationally while making decisions, rather several factors influence their decisions whether it is related to stock market or personal financial investments. It is necessary to understand the major cause of irrationality in the markets. This paper attempts to have an insight about the key factors influencing the behaviour of the investors with respect to the demographics in relation to the investments and their personal financial decision making process. This study will be useful for investors to understand the common behaviours and identify their reactions while taking decisions.

THE INVESTIGATION OF INVESTOR BEHAVIORS IN TERMS OF BEHAVIORAL FINANCE AND INVESTOR PSYCHOLOGY: THE CASE OF SULTANHİSAR DISTRICT

Today, one way of understanding the activity and inactivity of the world of finance passes through understanding human because the investment decisions that individuals make or not are completely related to human, that is to say, to themselves. In this sense, the investment decisions that individuals have made or not are available for research in the field of behavioral finance and striking results have been revealed. Within this context, the aim of this study was to reveal the investor profiles of the farmers working in Sultanhisar district of Aydın province, the distinguished province of Aegean Region and to try to determine which psychological factors they were influenced by while making investment decisions. As a result of the study, investor profiles were revealed and of investor psychological bias, acquaintance delusion, overconfidence delusion, attribution delusion, representation heuristic, predisposition effect, and over optimism delusion was used. At the end of the research, it was determined that there were differences among the sub-dimensions used and suggestions were presented.

Role of Psychological Factors in Individuals Investment Decisions

International Journal of Economics and Financial Issues, 2015

In this study, the authors intend to identify psychological factors which could influence the criteria for investment decision which are discussed with three dimensions (risk, repay and corporate data). With regard to this aim, the criteria for investment decision were examined through defense mechanisms, personality traits, emotional intelligence and financial literacy. Defense mechanisms and certain personality traits have become prominent for risk criterion while defense mechanisms and financial literacyhave been important to repay criterion. Lastly, for corporate data criterion, defense mechanisms, some personality traits and emotional intelligence have been found as important. Within this scope, this study can be said to have carried out a preliminary research in its field in terms of explanatory variables.

Influences of some fundamental issues in the investment decision making process

Behavioral finance is a branch of finance that tries to understand the psychological aspects of investor in the process of decision making while selling, buying or investing in the market. Investment in the market is considered a good option for gaining profit. But, some kind of market risks is also associated with market investment. Behavioral finance studies the factors that influence the decision of an individual while investing. It covers all the decisions of investors whether good or bad. This branch of finance also investigates the inefficiency of a market. In daily life, people take several decisions leading to good or bad consequences. An individual may think to buy stock or a fund manager may think to sell a stock so as to make a balance to the portfolio. The current article describes various issues related to behavioral finance.

International Journal of Economics and Financial Issues Role of Psychological Factors in Individuals Investment Decisions

2015

In this study, the authors intend to identify psychological factors which could influence the criteria for investment decision which are discussed with three dimensions (risk, repay and corporate data). With regard to this aim, the criteria for investment decision were examined through defense mechanisms, personality traits, emotional intelligence and financial literacy. Defense mechanisms and certain personality traits have become prominent for risk criterion while defense mechanisms and financial literacyhave been important to repay criterion. Lastly, for corporate data criterion, defense mechanisms, some personality traits and emotional intelligence have been found as important. Within this scope, this study can be said to have carried out a preliminary research in its field in terms of explanatory variables.

Investor ’ S Psychology in Investment Decision Making : A Behavioral Finance Approach

2018

Worldwide the financial markets are influenced by several factors such as the changes in economic and political processes that occur in the country and the globe, information diffusion and approachability and so on. Yet, the foremost important factor is the investor’s reaction and perception. For an individual investor, decision making process can be perceived as a continuous process that have significant impact of their psychology while making investment decisions. Behavioral finance relies on research of human and social recognition and emotional tolerance studies to identify and understand the investment decisions. This article aims to report the research of individual investor’s financial behavior in a historical perspective. This article uncovers the investor’s psychology in investment decision making focusing on the investor’s rationality by explaining psychological and emotional factors that affect investing. The results of the study are revealed by means of Graphical visuali...