The Impact of Demographic and Behavioural Biases Factors on Investment Decision of Equity Investors in Kerala
Keywords:
Behavioural finance, demographic factors, behavioural biasesAbstract
Behavioural finance explain how cognitive errors (mental mistakes) and emotions of the investors influence the decision making process. According to behavioural finance people are not always rational. Their investment decisions are affected with various behavioural biases. This paper is an attempt to find out whether there is any association between demographics variable and behavioural biases of investors. Whether investment biases vary according to various demographic factors. Chi-square analysis is used for analysing the relationship between behavioural biases and demographic factors. The findings of the study shows that optimistic bias and herd biases are vary according to the age group, occupation, educational level of the respondents. Overconfidence bias vary according to the gender, age and occupation of the investors. This study is very useful to both investors and stock brokers to understand the emotions and mental mistakes of investors.
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