What Does Matter in Economy Today: When Human Psychology Drives Financial Markets

Dhaoui, Abderrazak

doi:10.1016/j.aebj.2014.12.002

Cited by 8 publications

(7 citation statements)

References 49 publications

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“…Bakar and Yi (2016) argue that behavioural finance studies have proved that individual investors do not behave rationally, but their decisions are affected by their psychological feelings. Numerous studies from ASEAN and Western countries have, in fact, established that psychological factors do have a relationship with an impact on the decision-making of investors with regard to the markets; for example, Akhtar and Batool (2012) regarding the Karachi, Lahore, and Islamabad Stock Exchanges; Phan and Zhou (2014) regarding the Vietnamese Stock Market; Riaz and Hunjra (2015) and Farooq, Afzal, Sohil & Sajid (2015) regarding the Pakistani Stock Market; Dhaoui (2015) regarding the Japanese, U.S., French, U.K., and Swiss Stock Markets; Shabgou and Mousavis (2016) regarding the stock exchange in Tabriz, Iran; and, finally, Gupta and Ahmed (2016) regarding the Indian Stock Market. Decision errors can be due to human mind behaviour.…”

Section: Literature Reviewmentioning

confidence: 99%

Factors influencing Individual Investor Behaviour: Evidence from the Kuwait Stock Exchange

Abul¹

2019

ASS

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This study investigates the effects of psychological factors on investor behaviour regarding the Kuwait Stock Exchange (KSE). These psychological factors are, namely: excessive optimism vs pessimism, herd behaviour and risk appetite. The data for this study obtained from KSE and a survey of a random sample of 398 individual investors. By using qualitative analysis and based on the theory of behavioural finance, the study findings show that herd behaviour, optimism and psychology risk have an impact on the individual investors’ decisions. However, we did not find any evidence of overconfidence behaviour’s effects on investors’ decisions. To our knowledge, KSE has been examined by several researchers without taking into consideration the effects of psychological factors on individual investor decisions. This study finds that psychological factors play a significant role in individual investors’ decisions regarding KSE. This study might contribute positively to the development of this field of research in (KSE).

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Section: Literature Reviewmentioning

confidence: 99%

Factors influencing Individual Investor Behaviour: Evidence from the Kuwait Stock Exchange

Abul¹

2019

ASS

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“…During the last two decades, new research topic has attracted the attention of academics as well as practitioners. Investors do not act rationally, their human psychology drives their investment decisions (Akerlof & Shiller, 2009;Dhaoui, 2013Dhaoui, , 2015Dhaoui & Khraief, 2014). This finding of investor irrationality is not recent.…”

Section: Literature Reviewmentioning

confidence: 90%

Investor emotional biases and trading volume’s asymmetric response: A non-linear ARDL approach tested in S&P500 stock market

Dhaoui

Bacha

2017

Cogent Economics & Finance

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This paper investigates the dynamic linkages between trading volume and investors sentiments for the S&P500 stock exchange. Two sentiment indicators are considered, the overconfidence and the net optimism-pessimism indicator. Non-linear dynamic approach, namely the asymmetric autoregressive distributed lag (NARDL) model is used to capture the long-term and short-term non-linear connections between the investor sentiment and the stock market liquidity. Empirical findings suggested an asymmetric long-term market liquidity reaction to investor sentiment. In the short-term, the stock market liquidity react rapidly and asymmetrically to changes in overconfidence sentiment, while the optimism and pessimism sentiment has insignificant short-term impact on trading volume.

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“…Penelitian ini memperluas literatur pada tiga dimensi [18]. Pertama itu menambah literatur yang berkembang tentang respons pasar terhadap pandemic.…”

Section: Pendahuluanunclassified

“…Penelitian [18] telah mempertimbangkan bahwa investor berperilaku rasional, dan mengabaikan untuk memasukkan ke dalam model ekonomi makro kognitif dan kelemahan emosional yang dapat mempengaruhi perilaku investor. Teori keuangan mengandaikan bahwa pasar efisien dan bahwa jika ketidakefisienan pasar mungkin ada, mereka umumnya tidak mudah dieksploitasi.…”

Section: Pendahuluanunclassified

How Behavioral Finance during Pandemic COVID-19?

Solihat

Nugraha²

2020

BIEJ

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The global pandemic of COVID-19 has created dramatic and unprecedented challenges for individuals, the economy, financial markets, financial institutions and governments. The purpose of this study was to determine how much change in financial behavior during the COVID-19 pandemic. This study uses a literature review method by comparing several previous research findings that are relevant to the COVID-19 pandemic problem. The results of this study reveal changes in financial behavior during the COVID-19 pandemic, especially in urban areas that are in the red zone and many financial transactions.

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What Does Matter in Economy Today: When Human Psychology Drives Financial Markets

Cited by 8 publications

References 49 publications

Factors influencing Individual Investor Behaviour: Evidence from the Kuwait Stock Exchange

Factors influencing Individual Investor Behaviour: Evidence from the Kuwait Stock Exchange

Investor emotional biases and trading volume’s asymmetric response: A non-linear ARDL approach tested in S&P500 stock market

How Behavioral Finance during Pandemic COVID-19?

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