Abstract

Behavior of investor is very important during investment which is the component of behavioral finance. Information acquisitions play an important role in trading behavior of investors. For this reason, present research is going to examine the impact of information acquisition on trading behavior of investors in presence of demographics as moderator. The results show positive and significant relation not only among the information acquisition and trading behavior of investors but also among all the dimensions of information acquisition. Moreover the outcome also proved that demographic factors moderate the relationship between the information acquisition and trading behavior. Present research is beneficial for investors which continually gather information and then take decision for investment. Keywords: Behavioral finance, Information acquisition, Trading behavior, Investors, Demographic factors. DOI : 10.7176/HRL/48-02

Highlights

  • 1.1 Background of research Behavioral finance has emerged as new proceeds during the last decade, to understand market anomalies in growing and rising economies

  • It is oblique to the worth of the information sources have effect on the trading activities of investor since a bit of information from consistent resource could lead to high trading them from those individual who is less truthful (Epstein & Schneider, 2008)

  • Social closeness which is an indicator of demographics effect on the investors trading behavior during financial decisions

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Summary

Introduction

1.1 Background of research Behavioral finance has emerged as new proceeds during the last decade, to understand market anomalies in growing and rising economies. Present study proposes how the demographics (namely age, gender, and experiences) of respondents moderate the connection between acquisition of information and individual trading behavior during monetary decisions in the stock market. According to the scholar understanding, there is a research by Abreu & Mendes (2012) that have examined the relation between acquisition of the information and the trading rate This is reliant on investor’s personality and on the source of information used by investor in the stock market. This study proposes that the information acquisition is impact on the investor behavior during trading may differ depending upon the demographics. The present research is going to propose this hypothesis; H2: Demographics will moderate relation among information acquisitions and the investor trading performance

Hypothesis Development H1
Results and finding
Reliability Analysis of Variables
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