How do emotional intelligence and behavioral biases of investors determine their investment decisions?
نویسندگان
چکیده
منابع مشابه
When do Investors Exhibit Stronger Behavioral Biases?∗
This paper examines whether individual investors exhibit stronger behavioral biases when value ambiguity or information uncertainty is higher. Using a six year (1991 to 1996) panel of retail stock holdings and trades, I find that investors are more overconfident and exhibit stronger disposition effect when stocks are more difficult to value. Furthermore, using trading correlation as a proxy for...
متن کاملBehavioral Biases and Investment
We use a new and unique dataset to investigate the way investors react to prior gains/losses and the so called ”familiarity” bias. We distinguish between di¤erent behavioral theories (loss aversion, house-money e¤ect, mental accounting) and between behavioral and rational hypotheses (pure familiarity and informationbased familiarity). We show that, on an yearly horizon, investors react to previ...
متن کاملImpact of Cognitive Biases in Investment Decisions of Individual Investors in Stock Market
Individuals’ decision on investment in stock market is affected by so many factors which are influenced by their day to day affairs. Behavioural biases may creap into their investment decisions such as Representativeness Bias, Illusion of Control Bias, Hindsight Bias, Cognitive Dissonance Bias, Self-attribution Bias, Loss Aversion Bias, Regret-Aversion Bias, Over-optimism Bias and Herding Bias ...
متن کاملDo Investors Buy What They Know? Product Market Choices and Investment Decisions
This article shows that individuals’ product market choices influence their investment decisions. Using microdata from the brokerage and automotive industries, we find a strong positive relation between customer relationship, ownership of a company, and size of the ownership stake. Investors are also more likely to purchase and less likely to sell shares of companies they frequent as customers....
متن کاملHow Do Individual Investors Trade ?
This paper examines how high-frequency trading decisions of individual investors are influenced by past price changes. Specifically, we address the question as to whether decisions to open or close a position are different when investors already hold a position compared to when they don’t. Based on a unique dataset from an electronic foreign exchange trading platform, OANDA FXTrade, we find tha...
متن کاملذخیره در منابع من
با ذخیره ی این منبع در منابع من، دسترسی به آن را برای استفاده های بعدی آسان تر کنید
ژورنال
عنوان ژورنال: Rajagiri Management Journal
سال: 2020
ISSN: 0972-9968,2633-0091
DOI: 10.1108/ramj-12-2019-0027