Investor Behaviour towards Various Capital Market Information

Dr. V. Shanmugasundaram .

Abstract


Investing may offer expressive benefits like status and feelings of social responsibility besides utilitarian benefits like low risk in combination with high returns. Investor behaviour is characterised by overexcitement and overreaction in a volatile market. Investors get carried away by the financial magazine ratings, media impact, tips from share brokers, friends and others and the sources of information were not adequately tapped. The goal of financial independence and wealth drive millions of investors to seek out vehicles by which success may be achieved through any investment avenue. Investors have more socially oriented needs, which can have important implications for their decision making process. In this paper investor behaviour is analysed whether they behave rationally or irrationally towards various capital market information like bonus issue, rights issue, dividend declaration etc and the result show that investors behave rationally towards specific capital market information.


Keywords


investment decision, rational, irrational, overreaction, influence, opinion

Full Text:

PDF

References


Ackert L, Church B and Ely K (2008), “Biases in Individual Forecasts: Experimental Evidence”, The Journal of Behavioural Finance, Vol. 9. pp. 33-61.

Barberis N, Shleifer A and Vishny R (1998), “A Model of Investor Sentiment”, Journal of Financial Economics, Vol.49, pp.307-343.

Cianci A M (2008), “The Impact of Investor Status on Investors’ Evaluation of Negative and Positive, Separate and Combined Information”, The Journal of Behavioural Finance, Vol. 9, pp.117-131.

Davar Y and Gill S (2007), “Investment Decision Making : An empirical study of perceptual view of investors”, Metamorphosis, A Journal of Management Research, IIM, Lucknow, Vol.6, No 2, pp 115- 135.

Hvidkjaer S (2008), “Small Trades and the Cross-section of Stock Returns”, The Review of Financial Studies, Vol. 21, No.3, pp 1123-1151.

Iyer B and Bhaskar R.K (2002), “Investor Psychology : A study of Investor Behaviour in the Indian Capital Market,” Finance India, Vol. XVI, No.4, pp. 1357-1375.

Mittal M and Vyas R.K, (2008), “Personality Type and Investment Choice. An empirical Study”, The Icfai University Journal of Behavioural Finance, Vol. V, No.3, pp. 6-22.

Nagpal S and Bodla B.S (2009), “Impact of Investors’Life style on their Investment Pattern : An empirical study”, The ICFAI University Journal of Behavioural Finance, Vol. VI, No.2 pp. 28-51.

Nicolosi G, Liang, P and Zhu N (2009), “Do individual investors learn from their trading experience ?”, Journal of Financial Markets, Vol. 12, pp.317 – 336.

Prentice R (2007), “Ethical Decision Making : More needed than good intentions”, Financial Analysts Journal, Vol. 63, No.6, pp.17-30.

Ricciardi V (2005), “A Unique perspective of Behavioural Finance : A Research Starting Point for the New Scholar”, source: www.ssrn.com. / abstract : 566 802.

Rudramurthy B.V. and Raju H K (2008), “An evaluation of Investment Strategies Based on Technical Indicators with Special Reference to Select IT Stocks of Indian Stock Markets”, Institute of Productivity & Management Journal, Lucknow, Vol.11, pp.49-63.

Shanmugasundaram V and Balakrishnan V (2009), “Behavioural Biases of Investors in Capital Market”, South Asian Journal of Socio Political Studies, SAJOSPS,Vol.10, No.1, pp. 99-102.

Shanmugasundaram V and Balakrishnan V (2010), “Investment Decision Making – A Behavioural Approach”, International Journal for Business Innovation and Research IJBIR, Vol.5, No.6/7, (Inderscience Publishers)

Waweru N M, Evelyne M and Elliana E (2008), “The Effects of Behavioural Factors in Investment Decision Making : A Survey of Institutional Investor Operating at the Nairobi Stock Exchange”, International Journal of Business and Emerging Markets, Vol.1, No.1, pp.29-41.


Refbacks

  • There are currently no refbacks.




Editorial Office:

Educational Research Multimedia & Publications,
S.N. 21, Plot No 24, Mirza Ghalib Road Malegaon Nasik,
Maharashtra India - 423203.
+919764558895 (whatsapp),
editor@scholarshub.net, www.scholarshub.net

Copyrights © 2010-2021 - ERM Publications, India     

This work is licensed under https://creativecommons.org/licenses/by-sa/4.0/

click site richard mille replica a fantastic read rolex replica read the article копии часов read this article orologi replica.