An Exploratory Inquiry into the Psychological Biases in Financial Investment Behavior

Sahi, Shalini Kalra; Arora, Ashok Pratap; Dhameja, Nand

doi:10.1080/15427560.2013.790387

Cited by 118 publications

(94 citation statements)

References 16 publications

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“…Thus, our study can be recognized as a preliminary stage of scale development process and be used in the item generation stage. It is good to state that our study is an extension of the mentioned study, (i.e., Sahi et al, 2013) however different from it in some ways. They analysed the verbal, interview data and renamed them as tendencies.…”

Section: Introductionmentioning

confidence: 99%

“…This can be thought as the starting point to understand behavioral biases of individuals. Thus, some studies have argued the identification (e.g., Agrawal, 2012;Albaity, Rahman, & Shahidul, 2014;Bailey, Kumar, & Ng, 2011;Mittal, 2010;Oechssler, Roider, & Schmitz, 2009;Sahi et al, 2013) and the role (e.g., Olsen, 2007;Pompian, 2008) of investor biases on financial decisions.…”

Section: Literature Review and Theoretical Frameworkmentioning

confidence: 99%

“…In order to operationalize these biases, we exploited the study of Sahi et al (2013). They analysed the in-depth interviews with participants and resulted that individuals mostly enunciated the statements below.…”

Section: Measurement Of Variablesmentioning

confidence: 99%

“…On the other hand, it is known that content analysis of the verbal statements can be exploited to capture many underlying psychological states of behaviors (Gottschalk & Gleser, 1969). In this paper, following and extending a study using in-depth interview method (Sahi, Arora, & Dhameja, 2013), we aim to identify some cues of behavioral biases on individuals. Through thirty semi-structured and indepth interviews, Sahi et al (2013) analysed the verbal data and named them according to their similarities.…”

Section: Introductionmentioning

confidence: 99%

“…In this paper, following and extending a study using in-depth interview method (Sahi, Arora, & Dhameja, 2013), we aim to identify some cues of behavioral biases on individuals. Through thirty semi-structured and indepth interviews, Sahi et al (2013) analysed the verbal data and named them according to their similarities. Our research asks the question whether those biased statements of individuals regarding their financial investment decisions have resemblance to each other and whether they represent certain psychological biases.…”

Section: Introductionmentioning

confidence: 99%

See 4 more Smart Citations

An Exploratory Approach Toward Identifying Behavioral Biases On Individual Investors

Aydemir¹

2017

The European Proceedings of Social and Behavioural Sciences

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The efforts to identify behavioral biases displayed by individual investors still continue. In addition to it, detecting these biases has also importance in behavioural finance domain. Through individuals' statements, produced from a previous in-depth interview study, this paper aims to explore whether those statements represent the denominated behavioral biases (i.e., preference for certainty, confirmation bias, consultancy bias, overconfidence bias, regret avoidance, loss aversion) as they are supposed to be and to observe whether those biases are related to individuals' risky investment behavior. We conducted exploratory factor and correlation analysis through the data of 107 individuals. Factor analysis results indicated that those statements represented their respective behavioral biases well. Correlation analysis showed that preference for certainty and loss aversion had a negative association with risky investment behavior, enabling that the relation between these two biases and risky investment behavior makes sense as expected. Managerial implications and research limitations were also discussed.

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Section: Introductionmentioning

confidence: 99%

Section: Literature Review and Theoretical Frameworkmentioning

confidence: 99%

Section: Measurement Of Variablesmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

See 3 more Smart Citations

An Exploratory Approach Toward Identifying Behavioral Biases On Individual Investors

Aydemir¹

2017

The European Proceedings of Social and Behavioural Sciences

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Policy stimulation for the electric vehicle industry: An analysis of mainstream media discourse

Jain,

Talwar,

Rastogi

et al. 2024

Bus Strat Env

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Motivated by the indisputable relevance of comprehensively understanding and portraying multiple facets of ongoing conversations on electric vehicles (EVs), we employ critical discourse analysis (CDA) to go beyond the how and why of these discussions and fathom the complex interplays and subtleties. Operationally, we inductively analyze 718 popular media articles published from 2020 through 2023 to distill four cumulative dimensions of the discourse on EVs: industry‐level enabling cues for EV adoption, economy‐level motivations and motivators, impediments to diffusion, and harbingers of change. These four dimensions are further unpacked into 16 themes to provide a more granular interpretation of media discourse on EVs. We provide an exhaustive perspective, navigating several macro and micro aspects to offer tangible theoretical and practical outcomes. In addition to creating a comprehensive point of reference for future research, the study offers substantial inputs for driving the policy agenda in terms of subsidies, start‐ups, and buy‐side barriers.

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Psychological biases of individual investors and financial satisfaction

Sahi

2017

J of Consumer Behaviour

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Traditional finance theory is based on the principle of maximization of utility and explains how choices are made by rational people. Although the theory provides numerous insights, observation of actual behavior of people was seen to be different from what the theory predicted. The homo economicus is in reality a homo sapien who has emotions and beliefs that help to filter the content from his or her environment. These beliefs and preferences that arise due to cognitive limitations, presence of emotions, and various psychological motives guide or bias his or her decisions. Much literature states that the biases should be corrected as they negatively impact financial behaviour and individual's well‐being. However, evolutionary psychology considers biases as design features of human mind. Thus, biases are not always bad, as at times, these biases can help the individual investor to choose the best course of action from the multiple possibilities and enable committing the less costly mistakes, thereby helping the individual to achieve satisficing behaviour. This paper aims to explore the investor biases and see whether they are related to the financial satisfaction of the individuals. Financial satisfaction is the measure of satisfaction with one's financial situation. The results showed that overconfidence bias, reliance on expert bias, and self‐control bias have a positive and significant association with financial satisfaction levels. Association of a few other biases with financial satisfaction was also observed under certain control conditions. This study provides further insights on investor behavior and paves the way for various possibilities for future research.

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An Exploratory Inquiry into the Psychological Biases in Financial Investment Behavior

Cited by 118 publications

References 16 publications

An Exploratory Approach Toward Identifying Behavioral Biases On Individual Investors

An Exploratory Approach Toward Identifying Behavioral Biases On Individual Investors

Policy stimulation for the electric vehicle industry: An analysis of mainstream media discourse

Psychological biases of individual investors and financial satisfaction

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