OPTIMISM AND EFFORT – A ROBUST BACKING OR BIAS ON ABILITY OF INVESTMENT DECISIONS
The investor optimism and effort as its impact of ability of decision-making process is the question of order today. Such gut feelings of market participants influence each investor’s financial decision-making process. In fact, something might well be fundamentally wrong in the current models of investment, decision-making process and the management of stock market investments. The study aims to identify the effect of emotions, risk appetite, security analysis methods, illusions and trading performance along with several personal and investment-related variables, against investor optimism and effort and ability of investment decisions. The primary data required for the study was collected through a questionnaire (interview schedule) from the stock market investors of Coimbatore city who trade in both BSE and NSE exchanges. The regression analysis was used to analyze the data. It is seen that, in absolute terms, the contribution of the variable, Risk appetite score, is higher compared to other variables with the highest beta values. There is a significant difference between the mean scores of investor optimism and effort and trading in fear of missing out an opportunity by the respondents.
Fares ARF, and Khamis FG. (2011). "Individual Investors’ Stock Trading Behavior at Amman Stock Exchange", International Journal of Economics and Finance, Vol.3(6), pp.128-134.
Hammond JS, Keeney RL, and Raiffa H. (1998). "The Hidden Traps in Decision Making", HBR, available online: https://hbr.org/1998/09/the-hidden-traps-in-decision-making-2
Vitt LA, Reichbach GM, Kent JL, and Siegenthaler JK. (2005). “Goodbye to Complacency: Financial Literacy Education in the US 2000-2005”, AARP, Washington DC.
Zoghlami F, and Matoussi H. (2009). “A Survey of the Tunisian Investors’ Behavior", International Research Journal of Finance and Economics, Vol.31, September 2009, pp.66-82.
- There are currently no refbacks.
Send mail to firstname.lastname@example.org with questions or comments about this web site.
International Journal of Social and Allied Research, All rights reserved.