Psychological tendencies in an emerging capital market: a study of individual investors in India

Ameet Pandit () and Ken Yeoh
Additional contact information
Ameet Pandit: The University of Newcastle, Australia
Ken Yeoh: Northumbria University, UK

Journal of Developing Areas, 2014, vol. 48, issue 3, 129-148

Abstract: Recent findings in the finance and consumer behaviour literature have shown that investorsÕ investment decisions are likely to be affected by their psychological tendencies. The focus of this paper is to understand how investorsÕ psychological tendencies influence purchase postponement of shares. Furthermore, the moderating effects of product involvement on the relationship between psychological tendencies and also purchase postponement are examined. Using a survey research design, data was collected from Indian investors to empirically test the model using moderated regression analysis. Our findings show that investorÕs psychological tendencies do significantly impact purchase postponement. Furthermore, a profile of Indian retail investors is presented in the paper. Our findings documents another distinct phenomenon of investorsÕ persistent departures from rationality as posited by behavioural finance and also provides a better understanding of the nature of individual investor participation in the Indian capital market.

Keywords: Individual Investors; Psychological Tendencies; Purchase Postponement; Emerging Markets (search for similar items in EconPapers)
JEL-codes: F15 O19 (search for similar items in EconPapers)
Date: 2014
References: Add references at CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
http://muse.jhu.edu/journals/journal_of_developing_areas/v048/48.3.pandit.html

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:jda:journl:vol.48:year:2014:issue3:pp:129-148

Access Statistics for this article

More articles in Journal of Developing Areas from Tennessee State University, College of Business Contact information at EDIRC.
Bibliographic data for series maintained by Abu N.M. Wahid ().