An Intimate Portrait of the Individual Investor

Durand, Robert B.; Newby, R.A.; Sanghani, Jay P

doi:10.1080/15427560802341020

Cited by 167 publications

(121 citation statements)

References 47 publications

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“…Researchers have studied financial behavior factors and their influence on financial decision making, such as psychological biases, socio-demographic factors, investor personality type, risk-taking, culture, etc. (Durand, Newby and Sanghani 2008;Venter, Michayluk 2007, Grabova 2013). Among the above -mentioned factors, we highlight the psychological biases on which the academics of Behavioral Finance, have done a colossal work to verify their existence.…”

Section: "The Investor's Chief Problem -And Even His Worst Enemy -Is mentioning

confidence: 99%

Psychological Biases, Main Factors of Financial Behaviour - A Literature Review

Dervishaj¹

2018

European Journal of Natural Sciences and Medicine

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In the context of the sophistication of financial relationships, investment alternatives, risk and recurrent recent financial crises, human factor has become increasingly important in investor decision-making. Studies on investment behavior of a number of authors at different times and places, encouraged this new widely accepted inter-disciplinary field of finance: Behavioral Finance. In order to understand and explain individual decision making and investment behavior, it is necessary to study behavioral factors which impact it. Various scholars have studied factors of financial behavior and their impact on financial decision making, and in particular a special focus has been given to psychological biases. Usually investors are not aware of their behavioral biases. If investors become conscious of biases they can face, they can act more rationally. This way of thinking might increase the quality of their decision-making. The paper aims to help decision-makers and investors get to know with psychological biases, in order to make better decisions when investing, reducing the chances of being vulnerable to behavioral deviations, as the consequences of individual errors are inevitably reflected at a macro level, causing instability and economic -financial crisis.

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Section: "The Investor's Chief Problem -And Even His Worst Enemy -Is mentioning

confidence: 99%

Psychological Biases, Main Factors of Financial Behaviour - A Literature Review

Dervishaj¹

2018

European Journal of Natural Sciences and Medicine

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“…They contend that Barber and Odean's (2001) findings for gender do not hold when considering psychological traits. Indeed, the evidence in Durand (2008), Durand, Newby, Peggs, et al (2013), and Durand, Newby, Tant, et al (2013) for the psychological construct of masculinity is very different from the conclusions drawn on the basis of biological masculinity.…”

Section: Personality and Gendermentioning

confidence: 95%

“…Extraversion and Neuroticism are the most commonly studied Big Five traits in neuropsychological research. Durand, Newby, Tant, et al (2013), who present a meta-analysis of Durand (2008) and Durand, Newby, Peggs, et al (2013) report that Extraversion and Neuroticism play very important roles in the analyses presented in these three papers.…”

Section: The Biological Basis Of the Five-factor Modelmentioning

confidence: 99%

“…Other studies challenge this view and find more similarities than differences in personality traits and decision-making styles between males and females (Johnson and Powell 1994;Powell and Ansic 1997). Durand (2008), Durand, Newby, Peggs, et al (2013), and Durand, Newby, Tant, et al (2013) consider gender issues by using measures capturing psychological sex roles (Bem 1977;1994). They contend that Barber and Odean's (2001) findings for gender do not hold when considering psychological traits.…”

Section: Personality and Gendermentioning

confidence: 99%

“…Understanding personality traits might help to fill this gap. Using the Five-Factor Model of personality traits as well as other metrics capturing personality, Durand, Newby, and Sanghani (2008) find that personality traits are associated with a wide range of investment decisions and outcomes. Durand, Newby, Peggs, and Siekierka (2013) claim that prices in financial markets are auctionlike and disparate strands of behavioral finance might be brought together by understanding the personality traits of the marginal price setter (i.e., the investor left holding the asset at the end of the price-setting process).…”

mentioning

confidence: 99%

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