Investment decision making among gulf investors: Behavioural finance perspective
The rationality hypothesis has been a very popular topic among the academics. Being a widely accepted hypothesis as part of the traditional finance theories, an investor is deemed a rational agent and makes rational decisions by exhausting all available alternatives.However, recently, new behavioura...
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| Format: | Article |
| Language: | English |
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Universiti Utara Malaysia
2017
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| Online Access: | https://repo.uum.edu.my/id/eprint/24017/1/IJMS%2024%20%281%29%2C%2041%E2%80%9371%20%282017%29.pdf |
| _version_ | 1825805031489667072 |
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| author | Almansour, Bashar Yaser Arabyat, Yaser Ahmad |
| author_facet | Almansour, Bashar Yaser Arabyat, Yaser Ahmad |
| author_sort | Almansour, Bashar Yaser |
| collection | UUM |
| description | The rationality hypothesis has been a very popular topic among the academics. Being a widely accepted hypothesis as part of the traditional finance theories, an investor is deemed a rational agent and makes rational decisions by exhausting all available alternatives.However, recently, new behavioural finance theories have been gaining ground as many empirical findings, which have been left unanswered by the traditional theories, can be explained by these behavioural-approach based theories. This research examined the impact of psychological factors on risk-taking behaviour in investment decisions. In particular, this research considered the possible effects of psychological factors, namely herding, heuristics, prospect, market, self-attribution bias, and familiarity bias, in making investment decisions. The findings in this paper declared that risk-taking behaviour in investment is affected by herding factors, heuristics factors, prospect factors, market factors and self-attribution bias factors. The familiarity bias factors do not significantly affect risk-taking behaviour in financial investment. |
| first_indexed | 2024-07-04T06:25:16Z |
| format | Article |
| id | uum-24017 |
| institution | Universiti Utara Malaysia |
| language | English |
| last_indexed | 2024-07-04T06:25:16Z |
| publishDate | 2017 |
| publisher | Universiti Utara Malaysia |
| record_format | eprints |
| spelling | uum-240172018-04-29T01:41:24Z https://repo.uum.edu.my/id/eprint/24017/ Investment decision making among gulf investors: Behavioural finance perspective Almansour, Bashar Yaser Arabyat, Yaser Ahmad HG Finance The rationality hypothesis has been a very popular topic among the academics. Being a widely accepted hypothesis as part of the traditional finance theories, an investor is deemed a rational agent and makes rational decisions by exhausting all available alternatives.However, recently, new behavioural finance theories have been gaining ground as many empirical findings, which have been left unanswered by the traditional theories, can be explained by these behavioural-approach based theories. This research examined the impact of psychological factors on risk-taking behaviour in investment decisions. In particular, this research considered the possible effects of psychological factors, namely herding, heuristics, prospect, market, self-attribution bias, and familiarity bias, in making investment decisions. The findings in this paper declared that risk-taking behaviour in investment is affected by herding factors, heuristics factors, prospect factors, market factors and self-attribution bias factors. The familiarity bias factors do not significantly affect risk-taking behaviour in financial investment. Universiti Utara Malaysia 2017 Article PeerReviewed application/pdf en https://repo.uum.edu.my/id/eprint/24017/1/IJMS%2024%20%281%29%2C%2041%E2%80%9371%20%282017%29.pdf Almansour, Bashar Yaser and Arabyat, Yaser Ahmad (2017) Investment decision making among gulf investors: Behavioural finance perspective. International Journal of Management Studies (IJMS), 24 (1). pp. 41-71. ISSN 0127-8983 http://ijms.uum.edu.my/index.php/previous-issues/169-international-journal-of-management-studies-ijms-vol-24-no-1-june |
| spellingShingle | HG Finance Almansour, Bashar Yaser Arabyat, Yaser Ahmad Investment decision making among gulf investors: Behavioural finance perspective |
| title | Investment decision making among gulf investors: Behavioural finance perspective |
| title_full | Investment decision making among gulf investors: Behavioural finance perspective |
| title_fullStr | Investment decision making among gulf investors: Behavioural finance perspective |
| title_full_unstemmed | Investment decision making among gulf investors: Behavioural finance perspective |
| title_short | Investment decision making among gulf investors: Behavioural finance perspective |
| title_sort | investment decision making among gulf investors behavioural finance perspective |
| topic | HG Finance |
| url | https://repo.uum.edu.my/id/eprint/24017/1/IJMS%2024%20%281%29%2C%2041%E2%80%9371%20%282017%29.pdf |
| work_keys_str_mv | AT almansourbasharyaser investmentdecisionmakingamonggulfinvestorsbehaviouralfinanceperspective AT arabyatyaserahmad investmentdecisionmakingamonggulfinvestorsbehaviouralfinanceperspective |