The Role of Heuristic Factors in Investment Performance: Exploring the Market Anomalies in a Volatile Environment
The literature of heuristic factors and investment performance is less confirmatory. That is why it is quite important to explore and quantify the mediation mechanism of stock market anomalies in a volatile environment. For this research, the data were collected through a survey to stock investors...
| Main Authors: | , , , |
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| Format: | Article |
| Language: | English |
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Universidad Pedagógica y Tecnológica de Colombia
2022-02-01
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| Series: | Apuntes del CENES |
| Subjects: | |
| Online Access: | https://revistas.uptc.edu.co/index.php/cenes/article/view/13025 |
| _version_ | 1797404093470212096 |
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| author | Kaleem Ullah Malik Muhammad Shaukat Malik Muhammad Irfan Hussain Mehdi |
| author_facet | Kaleem Ullah Malik Muhammad Shaukat Malik Muhammad Irfan Hussain Mehdi |
| author_sort | Kaleem Ullah Malik |
| collection | DOAJ |
| description |
The literature of heuristic factors and investment performance is less confirmatory. That is why it is quite important to explore and quantify the mediation mechanism of stock market anomalies in a volatile environment. For this research, the data were collected through a survey to stock investors who are actively involved in investing. The findings of this study show that heuristic factors, availability, conservatism, and illusion of control have a significant and positive direct relationship to investment performance. For heuristic factors like anchoring and gambler’s fallacy, there has been an insignificant direct relationship to investment performance. While in indirect relationship to the investment performance, illusion of control and conservatism generate both fundamental and technical anomalies in the market, and they affect the investment performance via technical and fundamental anomalies. Anchoring bias, availability bias and gambler fallacy do not generate both technical and fundamental anomalies in market. Our study result indicates that stock market fundamental and technical anomalies have influenced individual investors’ investment performance.
The findings show that there is a significant impact of fundamental anomalies on investment performance.
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| first_indexed | 2024-03-09T02:47:57Z |
| format | Article |
| id | doaj.art-17facb2156b54b7ea6b7e2b4ebc4d6df |
| institution | Directory Open Access Journal |
| issn | 0120-3053 2256-5779 |
| language | English |
| last_indexed | 2024-03-09T02:47:57Z |
| publishDate | 2022-02-01 |
| publisher | Universidad Pedagógica y Tecnológica de Colombia |
| record_format | Article |
| series | Apuntes del CENES |
| spelling | doaj.art-17facb2156b54b7ea6b7e2b4ebc4d6df2023-12-05T14:25:35ZengUniversidad Pedagógica y Tecnológica de ColombiaApuntes del CENES0120-30532256-57792022-02-014173The Role of Heuristic Factors in Investment Performance: Exploring the Market Anomalies in a Volatile EnvironmentKaleem Ullah Malik0Muhammad Shaukat Malik1Muhammad Irfan2Hussain Mehdi3Institute of Banking and Finance Bahauddin. Zakariya UniversityInstitute of Banking and Finance Bahauddin Zakariya University Institute of Banking and Finance Bahauddin Zakariya University Bahauddin Zakariya University The literature of heuristic factors and investment performance is less confirmatory. That is why it is quite important to explore and quantify the mediation mechanism of stock market anomalies in a volatile environment. For this research, the data were collected through a survey to stock investors who are actively involved in investing. The findings of this study show that heuristic factors, availability, conservatism, and illusion of control have a significant and positive direct relationship to investment performance. For heuristic factors like anchoring and gambler’s fallacy, there has been an insignificant direct relationship to investment performance. While in indirect relationship to the investment performance, illusion of control and conservatism generate both fundamental and technical anomalies in the market, and they affect the investment performance via technical and fundamental anomalies. Anchoring bias, availability bias and gambler fallacy do not generate both technical and fundamental anomalies in market. Our study result indicates that stock market fundamental and technical anomalies have influenced individual investors’ investment performance. The findings show that there is a significant impact of fundamental anomalies on investment performance. https://revistas.uptc.edu.co/index.php/cenes/article/view/13025Heuristic factorsTechnical anomaliesfundamental anomaliesStock ExchangeInvestment PerformanceMediation Analysis |
| spellingShingle | Kaleem Ullah Malik Muhammad Shaukat Malik Muhammad Irfan Hussain Mehdi The Role of Heuristic Factors in Investment Performance: Exploring the Market Anomalies in a Volatile Environment Apuntes del CENES Heuristic factors Technical anomalies fundamental anomalies Stock Exchange Investment Performance Mediation Analysis |
| title | The Role of Heuristic Factors in Investment Performance: Exploring the Market Anomalies in a Volatile Environment |
| title_full | The Role of Heuristic Factors in Investment Performance: Exploring the Market Anomalies in a Volatile Environment |
| title_fullStr | The Role of Heuristic Factors in Investment Performance: Exploring the Market Anomalies in a Volatile Environment |
| title_full_unstemmed | The Role of Heuristic Factors in Investment Performance: Exploring the Market Anomalies in a Volatile Environment |
| title_short | The Role of Heuristic Factors in Investment Performance: Exploring the Market Anomalies in a Volatile Environment |
| title_sort | role of heuristic factors in investment performance exploring the market anomalies in a volatile environment |
| topic | Heuristic factors Technical anomalies fundamental anomalies Stock Exchange Investment Performance Mediation Analysis |
| url | https://revistas.uptc.edu.co/index.php/cenes/article/view/13025 |
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