A STUDY ON EFFECT OF BEHVIORAL BIASES ON INVESTOR’S PREFERENCE REGARDING 80C TAX SAVING INSTRUMENTS IN SURAT CITY

2021 ◽  
Vol 12 (1) ◽  
pp. 60-69
Author(s):  
Hiral D Mehta ◽  
◽  
Dr. Jitesh Parmar ◽  
Keyword(s):  
Financial Markets ◽  
Sample Size ◽  
Sampling Method ◽  
Investment Decision ◽  
Investment Decisions ◽  
Survey Method ◽  
Behavioural Finance ◽  
Financial Decisions ◽  
Behavioral Biases

Behavioural finance is a new theoretical field which seeks to apply the understandings of the psychologists to recognize the behaviour of both investors and financial markets. It concentrates upon how investor is aware and acts on information to take investment decisions and that their behaviours reason them to make changed Selection about their financial decisions. Investors do not act sensibly in taking verdicts relating to investment. They have positive weaknesses like cognitive and emotional which take a predominating function in taking investment decision of individuals. They have behavioral biases in the event of taking investment decision. In this present paper researchers examines “Effect of Behvioral Biases on Investor’s Preference Regarding 80C Tax Saving Instruments in Surat City.”. Researcher has studied behavioral biases of investors investing in 80C tax saving instruments by conducting the survey with sample size of 100 investors through a wellstructured questionnaire in Surat city. The sampling method used was convenient sampling through personal survey method by contacting investors of Surat city. The purpose of this study was to find out behavioral biases of investors while investing in tax saving 80C instruments in Surat City.

The profitability of algorithmic trading systems based on football sentiment

2020 ◽  
Vol 42 (1) ◽  
pp. 33-46
Author(s):  
Raúl Gómez-Martínez ◽  
Camila Marqués-Bogliani ◽  
Jessica Paule-Vianez
Keyword(s):  
Financial Markets ◽  
Investment Decisions ◽  
Futures Market ◽  
Algorithmic Trading ◽  
Investment Strategies ◽  
Measurable Effect ◽  
Behavioural Finance ◽  
Trading Systems ◽  
European Football

Behavioural finance has shown that investment decisions are the result of not just rational but also emotional brain processes. On the assumption that emotions affect financial markets, it would seem likely that football results might have a measurable effect on financial markets. To test this, this study describes three algorithmic trading systems based exclusively on the results of three top European football teams (Juventus, Bayern München and Paris St Germain) opening long or short positions in the next market season of the futures market of the index of each country (MIB (Milano Italia Borsa), DAX (Deutscher Aktien Index) and CAC (Cotation Assistée en Continu). Depending on the outcome of the last game played a long position was taken after a victory and a short position after a draw or defeat. The results showed that the algorithmic systems were profitable in the case of Juventus and Bayern whereas in the case of PSG, the system was profitable, but in an inverse way. This study shows that investment strategies that take account of sports sentiment could have a profitable outcome.

scholarly journals EFFECT OF FINANCIAL LITERACY AND RISK PERCEPTION ON STUDENT INVESTMENT DECISIONS IN JAKARTA

2019 ◽  
Vol 3 (2) ◽  
pp. 107-132
Author(s):  
Rizky Eko Harry Saputro ◽  
Diyan Lestari
Keyword(s):  
Risk Perception ◽  
Financial Literacy ◽  
Sampling Method ◽  
Investment Decision ◽  
Linear Regression Analysis ◽  
Investment Decisions ◽  
Sampling Technique ◽  
Multiple Linear Regression Analysis ◽  
T Test ◽  
Test Result

This study aims to determine the effect of financial literacy and risk perception on student investment decisions in Jakarta. This study used a quantitative approach through questionnaires with as many as 120 respondents taken as sample which is obtained by using non-probability sampling technique and purposive sampling method. The research data is processed with SPSS, where the hypothesis is analyzed using t-test and multiple linear regression analysis. The results of this study indicate that financial literacy variable have a significant effect on investment decision, based on the t-test result which shows that t-count is higher in comparison to ttable (8,433>1,98045). Similarly, the risk perception variable have a significant effect on investment decision, which is shown by the higher tcount compared to t-table (2,319>1,98045).

Effect of Disposition Effect on Investment Decision Making in Property Market in Plateau State, Nigeria

2019 ◽  
pp. 83-98
Author(s):  
Dashol Ishaya Usman ◽  
Mary Pam
Keyword(s):  
Decision Making ◽  
Behavioral Finance ◽  
Investment Decision ◽  
Investment Decisions ◽  
Primary Data ◽  
Property Market ◽  
Financial Decisions ◽  
Descriptive Research ◽  
Investment Decision Making ◽  
Plateau State

The purpose of the chapter was to establish the effect of disposition on investment decision making in property market in Plateau State, Nigeria. Descriptive research design was used in the study. Primary data was collected using standard questionnaires with both closed and open-ended questions. The regression analysis results confirmed that there was a significant positive linear relationship between disposition and investor investment decision making in property market in Plateau State in Nigeria. The study concluded that disposition effects bias does not alter rationality in investment decision making. Disposition affected investment decisions. The main recommendation for investors is to make constant attempts to increase their awareness on behavioral finance by educating themselves on the field. Studying about the biases and reflecting on their decisions are likely to help achieve better self-understanding of the extent and manner to which they are influenced by emotions while making financial decisions under uncertainty.

scholarly journals An Analysis of Behavioral Biases in Investment Decision-Making

2019 ◽  
Vol 10 (4) ◽  
pp. 55 ◽  
Author(s):  
Geetika Madaan ◽  
Sanjeet Singh
Keyword(s):  
Decision Making ◽  
Positive Impact ◽  
Stock Exchange ◽  
Investment Decision ◽  
Investment Decisions ◽  
Individual Investors ◽  
Behavioral Biases ◽  
Investment Decision Making ◽  
Survey Responses ◽  
The Impact

Individual investor’s behavior is extensively influenced by various biases that highlighted in the growing discipline of behavior finance. Therefore, this study is also one of another effort to assess the impact of behavioral biases in investment decision-making in National Stock Exchange. A questionnaire is designed and through survey responses collected from 243 investors. The present research has applied inferential statistics and descriptive statistics. In the existing study, four behavioral biases have been reviewed namely, overconfidence, anchoring, disposition effect and herding behavior. The results show that overconfidence and herding bias have significant positive impact on investment decision. Overall results conclude that individual investors have limited knowledge and more prone towards making psychological errors. The findings of the study also indicate the existence of these four behavioral biases on individual investment decisions. This study will be helpful to financial intermediaries to advice their clients. Further, study can be elaborated to study other behavioral biases on investment decisions.

Evaluation of behavioral biases affecting investment decision making of individual equity investors by fuzzy analytic hierarchy process

2019 ◽  
Vol 12 (3) ◽  
pp. 297-314 ◽  
Author(s):  
Jinesh Jain ◽  
Nidhi Walia ◽  
Sanjay Gupta
Keyword(s):  
Decision Making ◽  
Behavioral Finance ◽  
Investment Decision ◽  
Investment Decisions ◽  
Analytic Hierarchy ◽  
Content Type ◽  
Behavioral Biases ◽  
Investment Decision Making ◽  
Overconfidence Bias ◽  
Hierarchy Process

Purpose Research in the area of behavioral finance has demonstrated that investors exhibit irrational behavior while making investment decisions. Investor behavior usually deviates from logic and reason, and consequently, investors exhibit various behavioral biases which impact their investment decisions. The purpose of this paper is to rank the behavioral biases influencing the investment decision making of individual equity investors from the state of Punjab, India. This research would provide valuable insight into the different behavioral biases to investors and other participants of the capital market and help them in improving investment decisions. Design/methodology/approach The research is conducted on the individual equity investors of Punjab, India. Fuzzy analytic hierarchy process was applied to rank the factors influencing the decision making of individual equity investors of Punjab. The primary factors considered for the study are overconfidence bias, representative bias, anchoring bias, availability bias, regret aversion bias, loss aversion bias, mental accounting bias and herding bias. Findings The three most influential criteria were herding bias, loss aversion bias and overconfidence bias. The five most influential sub-criteria were “I readily sell shares that have increased in value (C61),” “News about the company (Newspapers, TV and magazines) affects my investment decision (C84),” “I invest each element of my investment portfolio separately (C71)” and “I usually hold loosing stock for long time, expecting trend reversal (C52).” Research limitations/implications Although sample survey conducted in the present study was based on a limited sample selected from a particular area that truly represented the total population, it is considered as the limitation of this study. Practical implications The outcome of this research provides investors with a better understanding of behavioral biases that influence their decision making. This study provides them a guideline on different behavioral biases that they should consider while making investment decisions. Originality/value The research model is based on the available literature on behavioral finance and the research results and findings would add value to the existing knowledge base.

scholarly journals How do emotional intelligence and behavioral biases of investors determine their investment decisions?

2020 ◽  
Vol 14 (1) ◽  
pp. 35-47
Author(s):  
Saloni Raheja ◽  
Babli Dhiman
Keyword(s):  
Decision Making ◽  
Stock Exchange ◽  
Investment Decision ◽  
Sample Selection ◽  
Investment Decisions ◽  
Risk Tolerance ◽  
Content Type ◽  
Behavioral Biases ◽  
Investment Decision Making ◽  
The Impact

Purpose In earlier studies, research has shown that EI is the only element, which influences the ways in which people develop in their lives, jobs and social skills control their emotions and get along with other people. It is EI that dictates the way people deal with one another and understand emotions. The research gap is to explore the impact of behavioral factors and investors psychology on their investment decision-making. Design/methodology/approach The information was gathered from 500 financial specialists. The region of research was the financial specialists who contribute through LSC Securities Ltd. in Punjab State. The purposive testing system was used in this examination. Findings The investigation found that the positive connection between the conduct predispositions of the financial specialists and venture choices of the speculators and positive connection between enthusiastic insight of the financial specialists and their venture choices. Yet, the authors found that the enthusiastic insight better foresees the venture choices of the financial specialists than the conduct predispositions of the speculators. Among the different elements of conduct inclinations of the speculator’s lament and carelessness are identified with the financial specialist’s venture choices. Among the various estimations of eager understanding – care, dealing with emotions, motivation, empathy and social aptitudes are related to the hypothesis decisions of the monetary pros. Research limitations/implications The sample selection was based on purposive sampling, rather than a random probability sample. The sample was area specific, restricted only to Ludhiana Stock Exchange in Punjab state. Therefore, the results of the study cannot be generalized with certainty to all the investors investing through other exchanges in other states. The inferences are based on the assumption that the data provided by the investors are true and correct. The findings may be relevant for other stock exchanges as that of the Ludhiana Stock Exchange. However, the authors do not claim the generalization of the results. Practical implications This study also helps to understand the relationship between investment decision-making and risk tolerance of investors. It will helpful for the financial advisors to know the behavioral biases of investors while making an investment decision, and therefore, they can advise investors properly to mitigate such biases. It may help the investors in understanding the subjective part of their behavior and control their emotions while taking decisions for their investment in stock market options. Social implications This research will help investment advisors and finance professionals to judge investors’ attitudes toward risk in a better way, which leads to better investment decisions. Originality/value This study is my own study and it is original and has not been published anywhere.

scholarly journals INFLUENCE OF MAKRO ECONOMIC, INVESTMENT DECISIONS, OWNERSHIP, TO RISK MANAGEMENT, FINANCIAL DECISIONS, AND STOCK RETURN, MODERATED BY GOOD FINANCIAL GOVERNANCE IN LQ 45 INDEX INDONESIA STOCK EXCHANGE

2019 ◽  
Vol 7 (12) ◽  
pp. 108-115
Author(s):  
Sutinem . ◽  
Tri Ratnawati ◽  
Srie Hartutie Moehaditoyo
Keyword(s):  
Risk Management ◽  
Stock Return ◽  
Sampling Method ◽  
Stock Exchange ◽  
Investment Decisions ◽  
Moderate Risk ◽  
Financial Decisions ◽  
Financing Decisions ◽  
Financial Governance

This study aimed to determined the effect of  makroeconomic, investment decisions, the ownership, on risk management , financing decisions and stock return, moderated by Good Financial Governance in LQ 45  index Indonesia Stock Exchange.The sample in the study companies that are continuously listed in the LQ 45  index Indonesia Stock Exchange 2014-2016 periode, Determination of sample is done by purposive sampling method and obtained sample of  24 companies. Method of data processing is using PLS. The result of the study were (1) makroeconomic influence negative and significantly to stock return, (2) Macroeconomic influence negative and significantly to risk management, (3) Macroconomic influence negative and significantly to financial decisions, (4) investment decisions influence positive and significantly to stock return, (5) investment decisions influence negative and significantly to risk management, (6) investment decisions influence negative and significantly to financial decisions, (7) ownership influence positive and significantly to stock return, (8) ownership influence negative and significantly to risk management, (9) ownership influence negative and significantly to financial decisions, (10) risk management positive and no significantly to stock return, (11) risk management influence positive and significantly to financial decisions, (12) financial decisions influence positive and significantly to stock return, (13) good financial governance influence positive and no significantly moderate risk management to stock return, (14) good financial governance influence positive and significantly moderate financial decisions  to stock return.

scholarly journals INVESTIGATION OF THE HERDING AND CONTRARIAN BEHAVIOUR OF INVESTORS

2021 ◽  
Author(s):  
Nijolė MAKNICKIENĖ ◽  
Jovita MASĖNAITĖ ◽  
Viktorija STASYTYTĖ ◽  
Raimonda MARTINKUTĖ-KAULIENĖ
Keyword(s):  
Deep Learning ◽  
Financial Markets ◽  
Negative Impact ◽  
Investment Decision ◽  
Investor Sentiment ◽  
Technical Analysis ◽  
Financial Instruments ◽  
Decision Strategy ◽  
Financial Decisions ◽  
Investor Behaviour

Purpose – The paper analyses two different paradigms of investor behaviour that exist in the financial mar-ket – the herding and contrarian behaviour. The main objective of the paper is to determine which pattern of investor behaviour better reflects the real changes in the prices of financial instruments in the financial markets. Research methodology – Algorithms of technical analysis, deep learning and classification of sentiments were used for the research; data of positions held by investors were analysed. Data mining was performed using “Tweet Sentiment Visualization” tool. Findings – The performed analysis of investor behaviour has revealed that it is more useful to ground financial decisions on the opinion of the investors contradicting the majority. The analysis of the data on the positions held by investors helped to make sure that the herding behaviour could have a negative impact on investment results, as the opinion of the majority of investors is less in line with changes in the prices of financial instruments in the market. Research limitations – The study was conducted using a limited number of investment instruments. In the future, more investment instruments can be analysed and additional forecasting methods, as well as more records in social networks can be used. Practical implications – Identifying which paradigm of investor behaviour is more beneficial to rely on can offer ap-propriate practical guidance for investors in order to invest more effectively in financial markets. Investors could use investor sentiment data to make practical investment decisions. All the methods used complement each other and can be combined into one investment decision strategy. Originality/Value – The study compared the ratio of open positions not only with real price changes but also with data obtained from the known technical analysis, deep learning and sentiment classification algorithms, which has not been done in previous studies. The applied methods allowed to achieve reliable and original results.

scholarly journals Accounting Information and Non-Accounting Information in Financing Decision: in Islamic Banking Indonesia

2020 ◽  
Vol 8 (6) ◽  
pp. 1425-1429
Keyword(s):  
Random Sampling ◽  
Sampling Method ◽  
Accounting Information ◽  
Simple Random Sampling ◽  
Target Population ◽  
Financial Statements ◽  
Survey Method ◽  
Islamic Banking ◽  
Financial Decisions ◽  
Financing Decisions

This study aims to determine whether Islamic Banking in its financing provision decisions based on financial statements as a source of accounting information, or not. To find out whether banks also base their financing decisions on non-accounting details or not. The target population in this study are all funding requests received by Islamic banking in Jambi City during 2018. The sample in this study amounted to 56 files, taken using the "simple random sampling" method. This research conducted using a survey method, namely, by using structured questions. The analysis carried out using multiple linear regression. The results showed that: accounting information variables that significantly influence financing decisions are activity variables. For the analysis of non-accounting information, the significant effect is the level of collateral, the reputation of the customer, and the economic sector to be financed. Together with the accounting information and non-accounting information, variables significantly influence the level of financial decisions.

scholarly journals Pengaruh Literasi Keuangan Terhadap Keputusan Investasi Mahasiswa STIE Indragiri Rengat

2021 ◽  
Vol 6 (1) ◽  
pp. 261
Author(s):  
Gita Sari Gustika ◽  
Hasanah Yaspita
Keyword(s):  
Regression Analysis ◽  
Financial Literacy ◽  
Sampling Method ◽  
Investment Decision ◽  
Linear Regression Analysis ◽  
Investment Decisions ◽  
Decision Variable ◽  
Financial Risks ◽  
Simple Linear Regression

Investment is a form of investment or capital to generate wealth, which will be able to provide returns, both present and future. Not a few people still do not understand how to invest properly and correctly, so many of them are deceived by investments by offering unreasonable interest returns and unclear investment management. By using financial literacy, it can make it easier for someone to understand and know things about finance and financial risks that may occur in order to avoid financial problems. This study aims to determine the effect of financial literacy on investment decisions in society, especially students. The case study in this research is the undergraduate student of the Sekolah Tinggi IlmuEkonomi Indragiri (STIE-I) Rengat. This study uses a comparative causal quantitative approach. Based on the calculation of the sampling using purposive sampling method with the Slovin formula.Results of Simple Linear Regression Analysis, jIf financial literacy is equal to 0 (zero), the amount of investment decisions will be 8.141 points, if financial literacy increases by 1 (one) unit, investment decisions will increase by 0.506 points. And hresult of partial test (t test, obtained t count is 8,434> t table 1,985, so it can be concluded that the Financial Literacy variable (X) has an effect on the Investment Decision variable (Y).

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