Investment Behavior Of Investors Research Articles

Factors Influencing the Investment Decision of Investors in Hanumakonda District

Investment behaviour refers to the attitude, perception and willingness of the individuals and institutions while placing their savings in various types of financial assets. Personal disposable income of the household is divided between consumption and savings. Savings may be idle or active. Savings becomes active, when it is canalized into return bearing avenues. So, the main objective of the study is to analyze the factors influencing the investment decision variables on investment behaviour of Investors in Hanumakonda district. The data is collected through structured questionnaire on simple random sampling technique and distributed to 384 investors in Hanumakonda district. It was found from the research analysis that age, educational qualification and annual income effecting the investment decision of investor’s investment avenues like equity and stocks, bonds and debentures, mutual funds, bank deposits, post office, public provident fund, life insurance, real estate, chit funds and gold/silver.

INVESTIGATING MEDIA AND COMMUNICATION CHANNEL SEARCH BEHAVIOUR OF RETAIL INVESTORS FOR INVESTMENT DECISION IN EMERGING FINANCIAL MARKETS

The purpose of this study aims at investigating the major sources of information which drives the investor’s behaviour in investment decisions in Indian Financial Markets. Diverse sources are classified into three categories, that is, financial advice, word-of-mouth communication and specialised press to investigate their effects on the investment behaviour of investors. A total of 258 investors filled a survey on a questionnaire in the National Capital Region of India by using the purposive sampling method. For analysis of data, PLS-SEM was applied on the software version 3.2.9. The key outcome of the study revealed that financial advice was considered as first choice (β = 0.265, p<0.000) to build their investment decision primarily on weekly basis followed by word-of-mouth communication (β = 0.154, p<0.05). Lastly, the mutual fund investors prefer financial newspapers and financial reports published by mutual fund regulatory body and their companies in India to do mutual funds investment. This study proposed a conceptual model in the literature of information search behaviour for mutual funds and contributes significantly to the mutual fund companies and investment agencies to market financial products in an effective manner for investors.

Investment behaviour in mutual funds: is it a knowledge-based decision?

PurposeThis paper aims to make an analysis of investment behaviour in mutual funds, by looking at different investment decision influencers and trying to identify the extent to which the investment decision is knowledge-based. The paper has three main purposes, namely, to assess the degree to which the considered factors influence investment decision-making in young capital markets from Central and Eastern Europe (CEE); to compare the investment behaviour in the three considered countries; and to characterise investment behaviour in periods of economic turbulence.Design/methodology/approachThe researchers considered a model of investment behaviour comprising six influencing factors. Inferential statistics through multiple linear regression was applied using the MATLAB R2014a software. The decision to invest was measured by the flow of new capital attracted by the fund (dependent variable) and the considered influencing factors (independent variables) were: the size of the fund, the risk associated to the fund, the growth of the fund, the growth of the fund category, the performance of the fund in its category. The research was conducted in Romania, Slovakia and Hungary. The period of study included the global economic crisis of 2007-2008.FindingsThe results illustrated that all considered factors do have an influence on the investment behaviour of investors in CEE, but with different levels of impact. The study concludes that the investment decision is partially knowledge-based, as investors in the region consider only some of the available information when making the decision to invest. Investment behaviour of investors in CEE is rather similar than dissimilar when deciding to invest in mutual funds. However, based on the differences between countries, it can be stated that the Hungarian investor is more mature and more informed than the others, when making investment decisions.Originality/valueThe study contributes to the exiting literature through the analysis of investment behaviour in young capital markets that are less studied in the literature. The limited number of studies considering mutual funds, usually comprise one fund category, while the present research considers all five most prevalent mutual funds categories for the studied period. It also contributed by collecting data from a less studied geographical region, CEE with three specific case studies, namely, Romania, Slovakia and Hungary that are looked at in a comparative manner.

An Analysis of Investment Behaviour of Information Technology Professionals: A study in Selected cities of Tri-city

Investment decisions are often influenced by numerous determinants that help investors and investment managers in the selection of an appropriate investment option (Jagongo & Mutswenje, 2014). This research directed to provide an analysis of investment behavior of Information Technology Professionals, to identify the influence of demographic factors and financial awareness factor (independent variables) on dependent variable investment behaviour (market bias and risk bearing bias). Market bias factor comprised five components, namely,changes in price, over-reaction,information about market, the past trends of shares,customer preference of companies and basics of underlying stocks. Risk-bearing bias comprisedof five components, namely, safety, liquidity, capital appreciation, return, and risk coverage. Age, gender, income, occupation, experience has selected as demographic components. The data was collected from 396 randomly selected Information Technology Professionals from Tricity, namely, Chandigarh, Mohali, and Panchkula. Responses gatheredthrough questionnaire framed on a 5-point Likert scale (Sullivan & Artino, 2014). The results of the research documented thatdemographic factors, financial awareness significantly impact the investment behaviour of investors. There is still more requirement to enhance financial awareness of information technology investors related to liquidity management. Besides, the existing research also documented that men more invest in comparison to women. Therefore, research showed significant difference among gender while taking investment decisions. Further, the study also suggested that financial Institutions need to made investment products more favourable to attract women information technology professionals.

Investment Behaviour of Investors: A Review

Investment Behaviour of Investors: A Review

Affective reactions influence investment decisions: evidence from a laboratory experiment with taxation

We investigate the effect of taxation on gains and losses on the investment behavior of investors. Based on the insights of both economic research on the influence of taxation on investment behavior and psychological concepts dealing with the descriptive decision behavior of investors we expect investors to react to taxation of investment alternatives they face with behavioral and affective changes. By conducting a laboratory experiment with a total of 72 participants based on the experimental design of Fochmann, Kiesewetter, and Sadrieh (2012) that allows to quantify the reactions of investors to taxation on gains and loss deduction independent of their individual risk preferences and additionally measuring the affective reactions of our participants, we explore the role of affect in the relation of taxation and decision making. Hence, we are able to show that affective reactions to the taxation situations, in particular the perceived valence of these situations, influence the change in behavior of investors when confronted with taxation on gains and limited loss deduction.

Affective Reactions Influence Investment Decisions: Evidence from a Laboratory Experiment With Taxation

We investigate the effect of taxation on gains and losses on the investment behavior of investors. Based on the insights of both economic research on the influence of taxation on investment behavior and psychological concepts dealing with the descriptive decision behavior of investors we expect investors to react to taxation of investment alternatives they face with behavioral and affective changes. By conducting a laboratory experiment with a total of 72 participants based on the experimental design of Fochmann, Kiesewetter, and Sadrieh (2012) that allows to quantify the reactions of investors to taxation on gains and loss deduction independent of their individual risk preferences and additionally measuring the affective reactions of our participants, we explore the role of affect in the relation of taxation and decision making. Hence, we are able to show that affective reactions to the taxation situations, in particular the perceived valence of these situations, influence the change in behavior of investors when confronted with taxation on gains and limited loss deduction.

Affective Reactions Influence Investment Decisions: Evidence from a Laboratory Experiment with Taxation

We investigate the effect of taxation on gains and losses on the investment behavior of investors. Based on the insights of both economic research on the influence of taxation on investment behavior and psychological concepts dealing with the descriptive decision behavior of investors we expect investors to react to taxation of investment alternatives they face with behavioral and affective changes. By conducting a laboratory experiment with a total of 72 participants based on the experimental design of Fochmann, Kiesewetter, and Sadrieh (2012) that allows to quantify the reactions of investors to taxation on gains and loss deduction independent of their individual risk preferences and additionally measuring the affective reactions of our participants, we explore the role of affect in the relation of taxation and decision making. Hence, we are able to show that affective reactions to the taxation situations, in particular the perceived valence of these situations, influence the change in behavior of investors when confronted with taxation on gains and limited loss deduction.

Modeling of Seasonal Volatility - Empirical Analysis of Impact of Increased Market Timings

Efficiency of the equity market is one of the areas of prime concern for the stock market regulators because of its bearing on the investment behavior of investors. Also, with the increase in the level of integration with global stock markets, information originating in different countries has an impact on the Indian markets. This calls for the operating standards of the domestic market to be at par with other developed global stock markets. Extending the trading hours is one of the latest actions initiated by SEBI in order to increase the efficiency and volume of the market, reducing the volatility in returns and thereby providing enough time to investors for implementing investment strategies. It would also align the domestic market with the Asian and European markets. This study is an effort to empirically investigate the pattern of volatility in the Indian Stock Markets in terms of its time varying nature and presence of certain characteristics such as day of the week effect and calendar month effect. Furthermore, the data has been analyzed to ascertain any structural change in the seasonal volatility of the returns provided by the Indian bourses after the extension of trading hours. Across the various trading days of the week, Monday was found to have the maximum volatility. Post the increase in trading hours, the volatility has reduced across all the days, and that, Wednesday is seen to be having the highest volatility in the daily returns. Also May was found to be the most volatile month of the year. In contrast, an analysis of the month of the year effect post the change in market timings leads us to the conclusion that the volatility has increased for the month of November while across the other months, the same has reduced.

Increased Trading Hours and its Post-Impact on Market Efficiency: Empirical Evidence from the Indian Stock Market

Efficiency of the equity market is one of the areas of prime concern for the stock market regulators because of its bearing on the investment behavior of investors. Also, with the increase in the level of integration with global stock markets, information originating in different countries has an impact on the Indian markets. This calls for the operating standards of the domestic market to be at par with other developed global stock markets. Extending the trading hours is one of the latest actions initiated by SEBI in order to increase the efficiency and volume of the market, reducing the volatility in returns and thereby providing enough time to investors for implementing investment strategies. It would also align the domestic market with the Asian and European markets. This study is an effort to analyze the impact of change in market timings on the volatility and volume of trade in the Indian stock market, its dependence on Singapore Stock Exchange (SGX) Nifty Futures and investment behavior of the Foreign Institutional Investors (FIIs) and Domestic Institutional Investors (DIIs). The returns and turnover in S&P CNX Nifty, returns on SGX Nifty Futures, and net investments by FIIs and DIIs have been analyzed on a daily basis using the software E-Views and SPSS by applying GARCH model, Independent sample t-test and linear regression model. It is found that subsequent to the change in stock market timings, the volatility has reduced while the volume of trade has increased. It is also found that the net investments by FIIs increased while that by DIIs decreased, and the impact of Nifty Futures traded in the Singapore Stock Exchange (SGX) on the Nifty Index reduced as a result of change in market timings.