Behavioral Finance and how its Behavioral Biases Affect German Investors
The growing discipline of behavioral finance has identified several biases that significantly impact individual investors' actions. This paper aims to evaluate the influence of behavioral biases on investing decision-making among German investors. A questionnaire is created, and survey results...
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| Format: | Article |
| Language: | English |
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University of Finance and Administration
2023-06-01
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| Series: | ACTA VŠFS |
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| Online Access: | https://acta.vsfs.eu/pdf/acta-2023-1-03.pdf |
| _version_ | 1797772130019966976 |
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| author | Schulz, Bastian |
| author_facet | Schulz, Bastian |
| author_sort | Schulz, Bastian |
| collection | DOAJ |
| description | The growing discipline of behavioral finance has identified several biases that significantly impact individual investors' actions. This paper aims to evaluate the influence of behavioral biases on investing decision-making among German investors. A questionnaire is created, and survey results from 342 investors are collected. Three behavioral biases, namely overconfidence, herding, and anchoring behavior, have been examined in this study. Moreover, it was determined if gender influences these biases among German investors. The findings indicate that male German investors are more susceptible to overconfidence and anchoring bias than female German investors. However, women are more likely than males to fall victim to the herding bias. Overall findings show that individual investors are prone to psychological mistakes. |
| first_indexed | 2024-03-12T21:47:34Z |
| format | Article |
| id | doaj.art-bf95546a442a435fb035b026fe4a6340 |
| institution | Directory Open Access Journal |
| issn | 1802-792X 1802-7946 |
| language | English |
| last_indexed | 2024-03-12T21:47:34Z |
| publishDate | 2023-06-01 |
| publisher | University of Finance and Administration |
| record_format | Article |
| series | ACTA VŠFS |
| spelling | doaj.art-bf95546a442a435fb035b026fe4a63402023-07-26T10:30:02ZengUniversity of Finance and AdministrationACTA VŠFS1802-792X1802-79462023-06-01171395910.37355/acta-2023/1-03Behavioral Finance and how its Behavioral Biases Affect German InvestorsSchulz, Bastian0University of Finance and Administration, PragueThe growing discipline of behavioral finance has identified several biases that significantly impact individual investors' actions. This paper aims to evaluate the influence of behavioral biases on investing decision-making among German investors. A questionnaire is created, and survey results from 342 investors are collected. Three behavioral biases, namely overconfidence, herding, and anchoring behavior, have been examined in this study. Moreover, it was determined if gender influences these biases among German investors. The findings indicate that male German investors are more susceptible to overconfidence and anchoring bias than female German investors. However, women are more likely than males to fall victim to the herding bias. Overall findings show that individual investors are prone to psychological mistakes.https://acta.vsfs.eu/pdf/acta-2023-1-03.pdfbehavioral economicsbehavioral financebehavioral biasesoverconfidenceanchoringherding |
| spellingShingle | Schulz, Bastian Behavioral Finance and how its Behavioral Biases Affect German Investors ACTA VŠFS behavioral economics behavioral finance behavioral biases overconfidence anchoring herding |
| title | Behavioral Finance and how its Behavioral Biases Affect German Investors |
| title_full | Behavioral Finance and how its Behavioral Biases Affect German Investors |
| title_fullStr | Behavioral Finance and how its Behavioral Biases Affect German Investors |
| title_full_unstemmed | Behavioral Finance and how its Behavioral Biases Affect German Investors |
| title_short | Behavioral Finance and how its Behavioral Biases Affect German Investors |
| title_sort | behavioral finance and how its behavioral biases affect german investors |
| topic | behavioral economics behavioral finance behavioral biases overconfidence anchoring herding |
| url | https://acta.vsfs.eu/pdf/acta-2023-1-03.pdf |
| work_keys_str_mv | AT schulzbastian behavioralfinanceandhowitsbehavioralbiasesaffectgermaninvestors |