Investor Behavioral Finance: Examining Its Applicability on Egyptian Investors

Karsh, Sharif M. Abu

doi:10.4236/ajibm.2018.811143

Cited by 3 publications

(2 citation statements)

References 6 publications

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“…Investors' decision-making is influenced by their past investment profits or losses (KARSH, 2018). They tend to use past performance as an indicator of future performance in decisions to purchase stock (Parmar & Bootwala, 2022).…”

Section: Introductionmentioning

confidence: 99%

Investigating the moderating role of past behavior in the relationship between risk aversion and investment choice in the Tehran stock market

Chenari,

Haroonkolaee

2024

JAI

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Research aims: The possibility of damaging factors such as risk aversion and past behavior when making investment choices is very high. Therefore, it is crucial to identify and measure risk aversion and the influence of people's past behavior in different conditions of certainty and uncertainty on investors' decisions in the market. The primary goal of this research, which has remained hidden from the perspective of many researchers, is to investigate the moderating effect of past behavior (experiences) on the relationship between risk aversion and investment choice among investors of the Tehran Stock Exchange.Design/Methodology/Approach: Considering the unlimited population size, Morgan's Table was used for sampling, and the sample size for the unlimited population according to Morgan's Table is 384 people. Therefore, 384 community members were selected as samples. The collected data were then analyzed through SPSS and SMART-PLS software, and research hypotheses were investigated using structural equation modeling.Research findings: The results obtained from the research demonstrated that the risk aversion factor yielded a positive and statistically significant effect on investment choice. In contrast, the factor of past behavior (experiences) generated a negative and statistically significant effect on the relationship between risk aversion and investment choice.Theoretical contribution/Originality: This study provides information on how to earn returns for investors and increase the efficiency of securities markets. In addition, there has been minimal research into this field in Iran.Practitioner/Policy implication: The results of this research provide for investors to pay attention to the impact of market efficiency and the optimal and desired use of available resources.Research limitation/Implication: Among the most important limitations, three things can be mentioned: (a) society's lack of familiarity with academic research, (b) failure to provide more variables, and (c) due to some characteristics of the respondents, generalizing the results to other populations must be approached with caution.

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Section: Introductionmentioning

confidence: 99%

Investigating the moderating role of past behavior in the relationship between risk aversion and investment choice in the Tehran stock market

Chenari,

Haroonkolaee

2024

JAI

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“…According to (Bickersteth et al, 2018) Overconfidence, an individual or organisation feels it already has a lot of knowledge and experience about something. According to (Abu Karsh, 2018), (Natan & Mahastanti, 2022), , (Shah et al, 2018) (Gerlich, 2021), (Barberis, 2018), (Khan 2020) suggests that the overconfidence variable has a positive influence on stock investment decision making. Investors who have overconfidence influence investment decisions.…”

Section: Introductionmentioning

confidence: 99%

The Influence Of Financial Socialization, Overconfidence And Mental Accounting On Investment Decisions

I Gede Adiputra,

Nur Ainun Bangun,

Bella Graceilla

2024

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This study examines the effect of financial socialisation, herding, overconfidence and mental accounting on investment decisions among stock investors in Jakarta. The sample in the study is stock investors who reside in Jakarta. The purposive sampling method collected 205 respondents through Google Forms distributed online on social media. The research data were analysed with a structural equation system using SmartPLS.3.2.9 software. The results showed that financial socialisation positively and significantly influences Generation Z's investment decisions in Jakarta. Overconfidence positively and significantly influences Generation Z's investment decisions in Jakarta. Mental accounting has a positive and significant influence on the investment decisions of Generation Z in Jakarta.

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Investigating the psychological factors that affect Egyptian investors’ behaviour and decisions before and after the pandemic

Hafez

2021

JGR

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Egyptian investors have lost a large portion of their investment due to the coronavirus pandemic. This research is novel research that aims to identify the behavioral factors of Egyptian investors that affect their investment decisions, before and after the pandemic. A number of survey questionnaires were distributed to Egyptian investors, in addition to personal interviews. Descriptive statistics and a regression model were used to analyzing the impact of psychological factors on the investment decisions for Egyptian investors. Results revealed that demographic and psychological factors influence investment decisions: overconfidence, loss, and regret aversion, disposition effect, representativeness and herding behavior, but it is not affected by gambler’s fallacy. It is affected also by some other demographic variables. However, income level has no effect. After the pandemic, not all demographic and psychological factors affect Egyptian investor’s behaviour. The behaviour finance theory is valid only and applied before the pandemic. This research opens the door for a new dimension to studying how to work on the governance of investors’ decisions, rationalizing those decisions and their effectiveness, which ultimately contributes to achieving high returns on their investment portfolios.

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Investor Behavioral Finance: Examining Its Applicability on Egyptian Investors

Cited by 3 publications

References 6 publications

Investigating the moderating role of past behavior in the relationship between risk aversion and investment choice in the Tehran stock market

Investigating the moderating role of past behavior in the relationship between risk aversion and investment choice in the Tehran stock market

The Influence Of Financial Socialization, Overconfidence And Mental Accounting On Investment Decisions

Investigating the psychological factors that affect Egyptian investors’ behaviour and decisions before and after the pandemic

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