Impact of psychological factors on investment decision in the Malaysian stock market
Traditional finance theories believe that investors behave rationally in making decisions and all trading activities are based on the available information in the market. However, in the real world, individuals make tons of irrational decisions subconsciously and this even occurs when making an inve...
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| Format: | Thesis |
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2014
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| Summary: | Traditional finance theories believe that investors behave rationally in making decisions and all trading activities are based on the available information in the market. However, in the real world, individuals make tons of irrational decisions subconsciously and this even occurs when making an investment decision. Investors’ decision making may be driven by behavioral prejudice. The primary objective of this study is to investigate the psychological factors that influence investment decisions in the Malaysian stock market, Bursa Malaysia. Psychological factors such as representativeness, availability, risk aversion, herd behavior and conservatism have been selected in this study to examine how these behaviors affect the decision making of investors. Data are collected through survey questionnaires from 254 respondents who have traded stocks in Bursa Malaysia. |
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