Economics, Econometrics and Finance
4 years ago

Cognitive biases lead household investors to make irrational investment decisions.

SSRN Electronic Journal
Irrational Behavior of Individual Household Investors: Does the Cognitive Biases Influence the Investment Decision?
P. Vijayalakshmi, R Sathishkumar

Paper Summary

Investors' decisions can be influenced by cognitive biases like overconfidence and confirmation bias. A study of 392 individual investors in Tamil Nadu found that these biases can lead to irrational behavior in investment decisions. The researchers used statistical tools to analyze the data and found that many investors were negatively affected by cognitive biases when making investment choices.

Related papers

Business, Management and Accounting
3 years ago

Behavioral biases impact investment decisions of individual and institutional investors.

Islamic Banking
COVID-19 Impacts
2 views
Economics, Econometrics and Finance
3 years ago

Investors' Emotions Drive Bank Stock Decisions, Impacting Market Efficiency.

Asset Pricing
Behavioral Economics
Islamic Banking
Economics, Econometrics and Finance
4 years ago

Study reveals how investor behavior biases impact stock market decisions

Asset Pricing