Investment decision-making – a behavioural approach

V. Shanmugasundaram and V. Balakrishnan

International Journal of Business Innovation and Research, 2010, vol. 4, issue 6, 584-597

Abstract: Investments are made with an avowed objective of maximising wealth. Investors need to make rational decisions for maximising their returns based on the information available by taking judgements free from emotions. Investors' behaviour is characterised by over excitement and overreaction in both rising and falling stock markets. Most of the investments and financial theories (Steinbacher, 2008) are based on the idea that everyone takes careful account of all available information before making investment decision. This research is conducted to analyse the factors influencing the behaviour of investors in capital market. Empirical evidence suggests that demographic factors influence the investors' investment decisions. This research article also investigates how investor interprets and acts on various capital market information to make informed investment decisions.

Keywords: rational behaviour; emotions; overreaction; psychology; sentiment; rationality; investments; emotional behaviour; decision making; behavioural approaches; wealth maximisation; investors; investment returns; over-excitement; stock markets; financial theories; finance; investment decisions; capital markets; Pondicherry; India; demographic factors; information; business innovation; business research; investment behaviour. (search for similar items in EconPapers)
Date: 2010
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.inderscience.com/link.php?id=35714 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ids:ijbire:v:4:y:2010:i:6:p:584-597

Access Statistics for this article

More articles in International Journal of Business Innovation and Research from Inderscience Enterprises Ltd
Bibliographic data for series maintained by Sarah Parker ().