Indian investors' biases impact stock market decisions, leading to potential losses.
The article explores how investors in the Indian stock market can be influenced by biases like self-attribution and overconfidence, in addition to being rational. The researchers used a method called structural equation modelling to analyze this relationship. They found that these biases do exist among investors, and that self-attribution and overconfidence are positively related. Factors like gender, age, occupation, income, and trading experience also play a role in these biases. The study suggests that investors should review their past investment decisions to avoid repeating behavioral mistakes caused by these biases. This is the first study of its kind in India, providing valuable insights for investors to improve their decision-making.