An empirical analysis of the factors influencing individual investors in the Indian Stock market
Journal Title: IOSR journal of Business and Management - Year 2018, Vol 20, Issue 3
Abstract
Finance and investment amongst the quantified notions have reportedly been unduly impacted by the non-quantified biases. Underscoring the plethora of behavioral biases that affect the decision making process of investors, the present paper unearth the role of biases in conventional finance models which are based on assumption of rationality. In contemporary times, behavioral finance has emerged as an important phenomenon which can be relied upon to capture the various factors affecting the decision making process of investors. The present study attempts to examine the most referred seven biases identified as per our review of literature including overconfidence, herd behavior, cognitive dissonance, disposition effect, representative bias, mood and cultural bias residing in the capital city of the country. The analysis of the study reveals that investors gets maximum influenced by representative bias, followed by overconfidence, cognitive dissonance and disposition effect. However, there is no impact of herd behavior on the decision making process of investors.
Authors and Affiliations
Dr. Sunaina Kanojia, Dr. Deepti Singh, Ashutosh Goswami
Keywords
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- EP ID EP410139
- DOI 10.9790/487X-2003123037.
- Views 91
- Downloads 0
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