The Behavioural Pattern of Investment in the Financial Market: A Study of the Individual Investors

IF 2.3 Q3 BUSINESS

Global Business Review Pub Date : 2023-09-25 DOI:10.1177/09721509231192229

Bakir Illahi Dar, Jatinder Kumar

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Abstract

Most financial theories are based on the assumption that everyone is logical and considers all available information before making decisions, which is not the case in reality. This study aims to analyse the behavioural determinants that drive the investment decision of individual investors in J&K. Non-probability convenience sampling was adopted; through which 392 responses from individual investors were gathered using a self-administered questionnaire. The t-test and ANOVA were used to determine the effect of demographics on investment behaviour (IB), whereas logistic regression was used to determine the impact of IB determinants on investment decision-making. The findings show that the investment decisions of investors in Jammu and Kashmir (J&K) are significantly influenced by age and occupation. The results also indicate that cognitive bias, investment goals and saving orientation have a substantial influence on IB but overconfidence, risk perception and decision influencers do not have any significant impact on the investment decision of individual investors in J&K. By gaining awareness of these determinants, investors can make more rational investment decisions, leading to enhanced market efficiency and achieving better outcomes in the financial market.

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金融市场投资行为模式:基于个人投资者的研究

大多数金融理论都是基于这样的假设:每个人都是合乎逻辑的，在做决定之前会考虑所有可用的信息，但现实并非如此。本研究旨在分析驱动个人投资者在强生公司投资决策的行为决定因素。采用非概率方便抽样;通过问卷调查，收集了392份个人投资者的反馈。使用t检验和方差分析来确定人口统计学对投资行为(IB)的影响，而使用逻辑回归来确定IB决定因素对投资决策的影响。研究发现，查谟和克什米尔(J&K)投资者的投资决策受到年龄和职业的显著影响。研究结果还表明，认知偏差、投资目标和储蓄取向对个人投资者的投资决策有显著影响，而过度自信、风险感知和决策影响者对个人投资者的投资决策没有显著影响。通过了解这些决定因素，投资者可以做出更理性的投资决策，从而提高市场效率，在金融市场上获得更好的结果。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Global Business Review BUSINESS-

CiteScore

7.10

自引率

12.50%

发文量

107

期刊介绍： Global Business Review is designed to be a forum for the wider dissemination of current management and business practice and research drawn from around the globe but with an emphasis on Asian and Indian perspectives. An important feature is its cross-cultural and comparative approach. Multidisciplinary in nature and with a strong practical orientation, this refereed journal publishes surveys relating to and report significant developments in management practice drawn from business/commerce, the public and the private sector, and non-profit organisations. The journal also publishes articles which provide practical insights on doing business in India/Asia from local and global and macro and micro perspectives.