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Behavior of the Lithuanian investors at the period of economic growth

Egidijus Bikas () and Vitalija SaponaitÄ— ()
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Egidijus Bikas: Vilnius University, Lithuania
Vitalija SaponaitÄ—: Vilnius University, Lithuania

Entrepreneurship and Sustainability Issues, 2018, vol. 6, issue 1, 44-59

Abstract: Modern scientists speak and write about investor’s psychological factors, decision-making processes, and the importance of financial behavior in the investment process. One of the modern theories – an efficient market – focused on rational investors. According to it, investors rationally manage their investment portfolio; rationally respond to constantly changing information and make rational changes to newly acquired information. However, the prospect theory has proven that irrational investor decisions play an important role in the investment process. An assessment of irrationality of investors is important for governments, fund managers and investors, eventually for all participants of financial market. For some, this is an opportunity to additional funds, to receive higher income, for others, would provide the added value, as they could identify themselves as investors. Understanding how decisions are influenced by behavior it is important both for self-education and investment decision-making. The article aims to identify the typology of the Lithuanian investors by distinguishing behavioral deviations that influence the behavior of investors’ decisions in the stage of the country’s economic growth. The research will identify types of physical entities, behavioral deviations, motives of investment decisions made. The qualitative and quantitative methods are used to perform the research: investor inquiry, correlation and regression analysis.

Keywords: behavior finance; behavioral deviations; investment decisions (search for similar items in EconPapers)
JEL-codes: D90 D14 E71 (search for similar items in EconPapers)
Date: 2018
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