The impact of behavioral factors on investment decisions and investment performance in Croatian stock market

IF 1.9 Q2 BUSINESS, FINANCE

Managerial Finance Pub Date : 2023-07-07 DOI:10.1108/mf-01-2023-0068

Marija Vuković, S. Pivac

{"title":"The impact of behavioral factors on investment decisions and investment performance in Croatian stock market","authors":"Marija Vuković, S. Pivac","doi":"10.1108/mf-01-2023-0068","DOIUrl":null,"url":null,"abstract":"PurposeInvestors' behavior in financial markets is often under the influence of various psychological and cognitive factors, as well as personality characteristics. This research explores which behavioral factors and personality traits affect investment decisions and, consequently, investment performance.Design/methodology/approachA survey analysis was conducted on a sample of 310 investors in Croatia. Partial least squares structural equation modeling was used to obtain the results.FindingsOverconfidence heuristic, prospect theory elements, emotions and stability and plasticity (as big two personality dimensions) positively affect investment decisions, while herding has a negative effect. Investment decisions, observed through the preference for long-term investments, consequently have a positive effect on the investment performance satisfaction.Originality/valueThis research proposes a unique comprehensive model of the effect of numerous different cognitive and psychological behavioral factors on investment decisions. Furthermore, the influence of investment decisions on investment performance is observed simultaneously. Understanding human behavior based on their personal characteristics can help investors to make better investment decisions. Advisors can learn from human behavior and guide their clients in the right direction when it comes to stock investment. Scientists will be able to replicate the model with other data and make comparative analyses.","PeriodicalId":18140,"journal":{"name":"Managerial Finance","volume":" ","pages":""},"PeriodicalIF":1.9000,"publicationDate":"2023-07-07","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Managerial Finance","FirstCategoryId":"1085","ListUrlMain":"https://doi.org/10.1108/mf-01-2023-0068","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q2","JCRName":"BUSINESS, FINANCE","Score":null,"Total":0}

引用次数: 0

Abstract

PurposeInvestors' behavior in financial markets is often under the influence of various psychological and cognitive factors, as well as personality characteristics. This research explores which behavioral factors and personality traits affect investment decisions and, consequently, investment performance.Design/methodology/approachA survey analysis was conducted on a sample of 310 investors in Croatia. Partial least squares structural equation modeling was used to obtain the results.FindingsOverconfidence heuristic, prospect theory elements, emotions and stability and plasticity (as big two personality dimensions) positively affect investment decisions, while herding has a negative effect. Investment decisions, observed through the preference for long-term investments, consequently have a positive effect on the investment performance satisfaction.Originality/valueThis research proposes a unique comprehensive model of the effect of numerous different cognitive and psychological behavioral factors on investment decisions. Furthermore, the influence of investment decisions on investment performance is observed simultaneously. Understanding human behavior based on their personal characteristics can help investors to make better investment decisions. Advisors can learn from human behavior and guide their clients in the right direction when it comes to stock investment. Scientists will be able to replicate the model with other data and make comparative analyses.

查看原文本刊更多论文

克罗地亚股票市场行为因素对投资决策和投资绩效的影响

投资者在金融市场中的行为往往受到各种心理和认知因素以及人格特征的影响。本研究探讨哪些行为因素和人格特征影响投资决策，从而影响投资绩效。设计/方法/方法对克罗地亚的310名投资者进行了抽样调查分析。采用偏最小二乘结构方程建模得到了计算结果。发现自信启发式、前景理论要素、情绪和稳定性与可塑性(作为两大人格维度)对投资决策有正向影响，羊群效应有负向影响。通过长期投资偏好观察到的投资决策对投资绩效满意度有积极影响。原创性/价值本研究提出了一个独特的综合模型，分析了许多不同的认知和心理行为因素对投资决策的影响。此外，同时观察到投资决策对投资绩效的影响。根据人的个人特征来理解人的行为可以帮助投资者做出更好的投资决策。当涉及到股票投资时，顾问可以从人类的行为中学习，并引导他们的客户走向正确的方向。科学家将能够用其他数据复制该模型并进行比较分析。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

求助全文

约1分钟内获得全文求助全文

来源期刊

Managerial Finance BUSINESS, FINANCE-

CiteScore

3.30

自引率

12.50%

发文量

103

期刊介绍： Managerial Finance provides an international forum for the publication of high quality and topical research in the area of finance, such as corporate finance, financial management, financial markets and institutions, international finance, banking, insurance and risk management, real estate and financial education. Theoretical and empirical research is welcome as well as cross-disciplinary work, such as papers investigating the relationship of finance with other sectors.