Representative bias and investment decision: the moderating role of accounting disclosure. An empirical study using structural equation modelling approach

Alsawalhah, Jafer

doi:10.1504/ijpqm.2022.124402

Cited by 2 publications

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“…According to Irshad et al [22] and Ikram [23] representativeness bias has a favorable impact on individual investors' trading decisions [22,23]. However, according to other studies, representativeness bias negatively impacts how investors make decisions [12,13,24,25,26,27,18]. Disposition effect studied by Dhar and Zhu [29] Frazzini [30] Barberis and Xiong [31] Kuo and Chen [32] Toma [28] and Madaan and Singh [19] gives contradictory results [28,29,30,31,32,19].…”

Section: Literature Reviewmentioning

confidence: 99%

Behavioral Attributes Influencing Decision Making of Indian Derivative Market Investors

Singh,

Chaudhary

2024

Asian J. Econ. Busin. Acc.

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Aim: The retail investors of the Indian investment landscape are found to base their investment decisions on several factors that may not be entirely attributed to price movement and information availability. Various studies have been conducted to capture these behavioral attributes that may invariably have an influencing effect either knowingly or unknowingly on the investors. This study aims to identify these behavioral biases influencing investor’s decision-making when they are active participants in the Indian Derivative market. Methodology: The study is conducted using primary data over 200 derivative investors within the northern Indian subcontinent aged between 18 years to 50 years. A questionnaire has been adapted from the defined scales from literature and uses the Likert scale to measure the behavioral patterns of investors. A cross-sectional survey method is used to distribute the questionnaire both online and offline. Factor analysis is then employed to identify the latent variables impacting the decision-making. Results: The sample under study generated six factors that have a significant influence on decision-making. These factors include Herding bias, Overconfidence bias, Risk Aversion, Market Responsiveness, Information processing Style and Information Reliance. All these factors have a significant influence on the investors buying and selling behavior in the Indian derivative market. A reliability test was run to assess the reliability of the factors where the Cronbach alpha was found to be above 0.8 for all the factors which shows a strong internal coherence among the factors.

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Section: Literature Reviewmentioning

confidence: 99%

Behavioral Attributes Influencing Decision Making of Indian Derivative Market Investors

Singh,

Chaudhary

2024

Asian J. Econ. Busin. Acc.

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Heuristic Biases and Investment Decision-making of Stock Market Investors: A Review Paper

Shah,

Butt

2024

Vision: The Journal of Business Perspective

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This article builds a theoretical and research framework by identifying numerous behavioural biases in investing decision-making through a survey of research publications in the field of behavioural finance. It outlines some of the early research that helped establish behavioural finance as a field of study and shows how it has developed through time. The purpose of the article is to carry a systematic review of the literature on heuristic biases, namely overconfidence, representativeness, anchoring, availability and gambler’s fallacy influencing stock market investment decisions, identifying the major gaps in the existing studies on behavioural biases. It also aims to raise specific questions for future research. In the present study, systematic literature review (SLR) technique has been employed. By looking at the research’s year of publication, the journal of publishing, the country of study, the type of study and the statistical methods employed, one can determine the relevance of the study. On the basis of keyword searches for ‘behavioural finance’ in various published journals, conference proceedings, working papers and some other published publications, the research papers are analysed. For the purpose of creating this article, research papers from the earliest studies (1970) to the most recent publications (2022) have been gathered over a period of years. The study also highlights some of the most recent research carried out in this area. The current study is based on 131 selected research papers that were published in reputable journals between 1970 and 2022. A significant portion of the body of literature on behavioural biases highlights the dearth of this type of study in emerging nations; increase in the number of studies after behavioural finance was applied to investment decision-making, the predominance of empirical research; the widespread use of regression analysis; the prevalence of studies on overconfidence bias and the dearth of studies on availability bias and gamblers fallacy. To the best of the authors’ knowledge, the article is a pioneering work in the field of behavioural finance to employ SLR method for a considerable span of time (1970–2022) and to evaluate all the heuristic biases involved in investment decision-making. The present research study is an integration of SLR and bibliometric analysis. The publications’ patterns have been revealed, and the relationships between different types of literature have shed information on the direction that further research should go in.

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Representative bias and investment decision: the moderating role of accounting disclosure. An empirical study using structural equation modelling approach

Cited by 2 publications

References 0 publications

Behavioral Attributes Influencing Decision Making of Indian Derivative Market Investors

Behavioral Attributes Influencing Decision Making of Indian Derivative Market Investors

Heuristic Biases and Investment Decision-making of Stock Market Investors: A Review Paper

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