IDEAS home Printed from https://ideas.repec.org/a/ods/journl/v5y2016i4p211-222.html
   My bibliography  Save this article

Factors Influencing the Individual Investor Decision Making Behavior in India

Author

Listed:
  • Anurag Agarwal

    (Swami Shukdevanand College, India)

  • Ajay Verma

    (University Grant Commission, India)

  • Rajiv Kumar Agarwal

    (Vardhman College, India)

Abstract

The paper is devoted to the subject of behavioral finance, it overviews main theoretical foundations as well as touches the practical issues of causes or biases of behavioral finance. The article concludes with the main strategies for different types of investors how to overcome those biases.

Suggested Citation

  • Anurag Agarwal & Ajay Verma & Rajiv Kumar Agarwal, 2016. "Factors Influencing the Individual Investor Decision Making Behavior in India," Journal of Applied Management and Investments, Department of Business Administration and Corporate Security, International Humanitarian University, vol. 5(4), pages 211-222, November.
  • Handle: RePEc:ods:journl:v:5:y:2016:i:4:p:211-222
    as

    Download full text from publisher

    File URL: http://www.jami.org.ua/Papers/JAMI_5_4_211-222.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Patricia Hatfield & Sandra Richtermeyer & Shelly Webb, 2014. "Revenue Diversification and Investment Policy: The Case for Nonprofits," Journal of Applied Management and Investments, Department of Business Administration and Corporate Security, International Humanitarian University, vol. 3(4), pages 214-219.
    2. DeWeaver, Mark A. & Shannon, Randall, 2010. "Waning vigilance and the disposition effect: Evidence from Thailand on individual investor decision making," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 39(1), pages 18-23, January.
    3. Rimpi Kaur, 2013. "Consumer Behavior Towards Mobile Phone Usage: A Case Study Of Muktsar District," Journal of Applied Management and Investments, Department of Business Administration and Corporate Security, International Humanitarian University, vol. 2(1), pages 27-35.
    4. Anju A., 2015. "Book Review: Behavioural Finance," Journal of Applied Management and Investments, Department of Business Administration and Corporate Security, International Humanitarian University, vol. 4(3), pages 189-191.
    5. Fama, Eugene F., 1998. "Market efficiency, long-term returns, and behavioral finance," Journal of Financial Economics, Elsevier, vol. 49(3), pages 283-306, September.
    6. Anatoliy G. Goncharuk, 2012. "Methodological aspects of investment decision making," Journal of Applied Management and Investments, Department of Business Administration and Corporate Security, International Humanitarian University, vol. 1(3), pages 355-359.
    7. Greg M. Richey, 2014. "Can Naughty Be Nice for Investors: A Multifactor Examination of Vice Stocks," Journal of Applied Management and Investments, Department of Business Administration and Corporate Security, International Humanitarian University, vol. 3(3), pages 162-169.
    8. Yu Zhang & Xiaosong Zheng, 2016. "A Study of Herd Behavior Based on the Chinese Stock Market," Journal of Applied Management and Investments, Department of Business Administration and Corporate Security, International Humanitarian University, vol. 5(2), pages 131-135, May.
    9. Anatoliy G. Goncharuk, 2012. "What investments are most effective during the financial crisis?," Journal of Applied Management and Investments, Department of Business Administration and Corporate Security, International Humanitarian University, vol. 1(1), pages 5-7.
    10. Anatoliy G. Goncharuk, 2012. "Applied Aspects Of Investment Decision Making," Journal of Applied Management and Investments, Department of Business Administration and Corporate Security, International Humanitarian University, vol. 1(4), pages 469-475.
    11. Padmaja Kadiyala, 2004. "Investor Reaction to Corporate Event Announcements: Underreaction or Overreaction?," The Journal of Business, University of Chicago Press, vol. 77(2), pages 357-386, April.
    12. Anatoliy G. Goncharuk, 2015. "Application of the Investment Theory in Research and Practice," Journal of Applied Management and Investments, Department of Business Administration and Corporate Security, International Humanitarian University, vol. 4(2), pages 119-126.
    13. Elisabete F. Simoes Vieira, 2012. "Corporate Investment Policy In The Context Of Family Firms," Journal of Applied Management and Investments, Department of Business Administration and Corporate Security, International Humanitarian University, vol. 1(4), pages 450-458.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Pallavi Dogra & Arun Kaushal & Prateek Kalia, 2024. "What drives the investment intentions of emerging economy millennials? Examining the effect of financial advertisement with the PLS-SEM," Journal of Financial Services Marketing, Palgrave Macmillan, vol. 29(2), pages 276-291, June.
    2. Andrea Krýslová, 2018. "Development of Changes in Corporate Governance Considering Its Non-Financial Factors through the Companies´ and Investors´ Lens," Journal of Applied Management and Investments, Department of Business Administration and Corporate Security, International Humanitarian University, vol. 7(4), pages 225-235, November.
    3. Suresh G., 2024. "Impact of Financial Literacy and Behavioural Biases on Investment Decision-making," FIIB Business Review, , vol. 13(1), pages 72-86, January.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Anatoliy G. Goncharuk, 2015. "Application of the Investment Theory in Research and Practice," Journal of Applied Management and Investments, Department of Business Administration and Corporate Security, International Humanitarian University, vol. 4(2), pages 119-126.
    2. T. Mohanasundaram & P. Karthikeyan, 2017. "Decisive Economic and Stock Market Indicators on Foreign Institutional Investments: Evidence from India," Journal of Applied Management and Investments, Department of Business Administration and Corporate Security, International Humanitarian University, vol. 6(1), pages 43-57, February.
    3. Yu Zhang & Xiaosong Zheng, 2016. "A Study of Herd Behavior Based on the Chinese Stock Market," Journal of Applied Management and Investments, Department of Business Administration and Corporate Security, International Humanitarian University, vol. 5(2), pages 131-135, May.
    4. Boubaker, Sabri & Farag, Hisham & Nguyen, Duc Khuong, 2015. "Short-term overreaction to specific events: Evidence from an emerging market," Research in International Business and Finance, Elsevier, vol. 35(C), pages 153-165.
    5. Huang, Kuo-Cheng & Wang, Yu-Chun, 2023. "How do investors underreact to seasoned equity offerings? Evidence from Taiwan's corporate governance evaluation," International Review of Financial Analysis, Elsevier, vol. 89(C).
    6. Jingfeng An & Gordon Gemmill & Dylan C. Thomas, 2012. "The Agency Effect of Repurchases on Closed†End Funds," European Financial Management, European Financial Management Association, vol. 18(2), pages 240-270, March.
    7. Dash, M. & Motukuri, T., 2019. "A Game-Theoretic Model for “Zero-Interest” Instalment Schemes," Journal of Applied Management and Investments, Department of Business Administration and Corporate Security, International Humanitarian University, vol. 8(1), pages 1-5, February.
    8. Ramnath, Sundaresh & Rock, Steve & Shane, Philip, 2008. "The financial analyst forecasting literature: A taxonomy with suggestions for further research," International Journal of Forecasting, Elsevier, vol. 24(1), pages 34-75.
    9. Mihir Dash & Teja Motukuri, 2018. "A Model of the Net Present Value of “Zero-Interest” Instalment Schemes," Journal of Applied Management and Investments, Department of Business Administration and Corporate Security, International Humanitarian University, vol. 7(4), pages 179-184, November.
    10. Mihir Dash, 2018. "Modelling the Efficient Frontier: An Empirical Study in the Indian Stock Market," Journal of Applied Management and Investments, Department of Business Administration and Corporate Security, International Humanitarian University, vol. 7(2), pages 83-94, May.
    11. Chuan-Hao Hsu & Hung-Gay Fung & Yi-Ping Chang, 2016. "The performance of Taiwanese firms after a share repurchase announcement," Review of Quantitative Finance and Accounting, Springer, vol. 47(4), pages 1251-1269, November.
    12. Kim, Sang-Joon & Bae, John & Oh, Hannah, 2019. "Financing strategically: The moderation effect of marketing activities on the bifurcated relationship between debt level and firm valuation of small and medium enterprises," The North American Journal of Economics and Finance, Elsevier, vol. 48(C), pages 663-681.
    13. Ettore Croci, 2007. "Corporate Raiders, Performance and Governance in Europe," European Financial Management, European Financial Management Association, vol. 13(5), pages 949-978, November.
    14. Sebastian Eichfelder & Mona Lau, 2015. "Capitalization of capital gains taxes: (In)attention and turn-of-the-year returns," FEMM Working Papers 150019, Otto-von-Guericke University Magdeburg, Faculty of Economics and Management.
    15. Benjamin Bennett & Isil Erel & Léa H. Stern & Zexi Wang, 2020. "Paid Leave Pays Off: The Effects of Paid Family Leave on Firm Performance," NBER Working Papers 27788, National Bureau of Economic Research, Inc.
    16. Stijn Claessens & M. Ayhan Kose, 2013. "Financial Crises: Explanations, Types and Implications," CAMA Working Papers 2013-06, Centre for Applied Macroeconomic Analysis, Crawford School of Public Policy, The Australian National University.
    17. Daniel Chai & Ziyang Lin & Chris Veld, 2018. "Value-creation through spin-offs: Australian evidence," Australian Journal of Management, Australian School of Business, vol. 43(3), pages 353-372, August.
    18. Cristi Spulbar & Ramona Birau & Lucian Florin Spulbar, 2021. "A Critical Survey on Efficient Market Hypothesis (EMH), Adaptive Market Hypothesis (AMH) and Fractal Markets Hypothesis (FMH) Considering Their Implication on Stock Markets Behavior," Ovidius University Annals, Economic Sciences Series, Ovidius University of Constantza, Faculty of Economic Sciences, vol. 0(2), pages 1161-1165, December.
    19. Nuzzo, Simone & Morone, Andrea, 2017. "Asset markets in the lab: A literature review," Journal of Behavioral and Experimental Finance, Elsevier, vol. 13(C), pages 42-50.
    20. Kroes, James R. & Manikas, Andrew S. & Gattiker, Thomas F., 2018. "Operational leanness and retail firm performance since 1980," International Journal of Production Economics, Elsevier, vol. 197(C), pages 262-274.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ods:journl:v:5:y:2016:i:4:p:211-222. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Anatoliy G. Goncharuk (email available below). General contact details of provider: https://edirc.repec.org/data/dmonaua.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.