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COMFORTING INVESTMENTS ARE RARELY PROFITABLE IMPEDIMENTS IN INVESTOR DECISION MAKING

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07 Pages : 51-59

http://dx.doi.org/10.31703/gssr.2019(IV-II).07      10.31703/gssr.2019(IV-II).07      Published : Jun 2

Comforting Investments are Rarely Profitable: Impediments in Investor Decision Making

Abstract

    This research aims at testing and confirming existence of selected behavioral biases of investors that affect their decisions. Five behavioral biases affecting irrational behavior of investors were selected: overconfidence bias, illusion of control bias, confirmation bias and recency bias and optimism bias. Primary data was collected through a questionnaire from 300 investors from banks, insurance companies, stock exchanges etc. The results were obtained by employing a correlation and regression analysis for the presence of behavioral biases and to detect degrees of their influence on decision making. Correlation results indicate moderate association between behavioral biases and decisions of investors. Outcome of the research indicates that while making financial decisions investors are moderately affected by behavioral biases.

    Investment Decisions, Overconfidence, Illusion of Control, Optimism, Confirmation, Recency, Behavioral Biases

    (1) Taqadus Bashir
    Associate Professor, Department of Management Sciences, Bahria University, Islamabad, Pakistan.
    (2) Faisal Mehmood
    PhD Scholar, Department of Management Sciences,Bahria University, Islamabad, Pakistan.
    (3) Altamash Khan
    PhD Scholar, Department of Management Sciences,Bahria University, Islamabad, Pakistan.
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Cite this article

APA

    APA : Bashir, T., Mehmood, F., & Khan, A. (2019). Comforting Investments are Rarely Profitable: Impediments in Investor Decision Making. Global Social Sciences Review, IV(II), 51-59. https://doi.org/10.31703/gssr.2019(IV-II).07

CHICAGO

    CHICAGO : Bashir, Taqadus, Faisal Mehmood, and Altamash Khan. 2019. "Comforting Investments are Rarely Profitable: Impediments in Investor Decision Making." Global Social Sciences Review, IV (II): 51-59 doi: 10.31703/gssr.2019(IV-II).07

HARVARD

    HARVARD : BASHIR, T., MEHMOOD, F. & KHAN, A. 2019. Comforting Investments are Rarely Profitable: Impediments in Investor Decision Making. Global Social Sciences Review, IV, 51-59.

MHRA

    MHRA : Bashir, Taqadus, Faisal Mehmood, and Altamash Khan. 2019. "Comforting Investments are Rarely Profitable: Impediments in Investor Decision Making." Global Social Sciences Review, IV: 51-59

MLA

    MLA : Bashir, Taqadus, Faisal Mehmood, and Altamash Khan. "Comforting Investments are Rarely Profitable: Impediments in Investor Decision Making." Global Social Sciences Review, IV.II (2019): 51-59 Print.

OXFORD

    OXFORD : Bashir, Taqadus, Mehmood, Faisal, and Khan, Altamash (2019), "Comforting Investments are Rarely Profitable: Impediments in Investor Decision Making", Global Social Sciences Review, IV (II), 51-59

TURABIAN

    TURABIAN : Bashir, Taqadus, Faisal Mehmood, and Altamash Khan. "Comforting Investments are Rarely Profitable: Impediments in Investor Decision Making." Global Social Sciences Review IV, no. II (2019): 51-59. https://doi.org/10.31703/gssr.2019(IV-II).07