concept

investor behavior

Also known as: investment behavior, individual investor behavior

Facts (11)

Sources

Understanding Behavioral Aspects of Financial Planning and Investing financialplanningassociation.org Financial Planning Association Mar 1, 2015 3 facts

claimRicciardi and Rice (2014) provide an extensive discussion of the influence of the financial crisis on the risk-taking behavior of different categories of investors.

claimInvestor behavior often deviates from logic and reason, with emotions like greed and fear influencing decisions and contributing to asset pricing bubbles.

claimSuccessful financial planning and investing require an understanding of investor behavior, including emotional processes, mental mistakes, and individual personality traits, rather than relying solely on numerical analysis and market trends.

Biases in Behavioral Finance - World Scholars Review worldscholarsreview.org Daria Azhyshcheva, Vi Dinh, Aanya Gothal, Abhinav Sisodiya · World Scholars Review Sep 15, 2024 2 facts

claimFuture studies on investor behavior should prioritize primary data collection over the secondary data that currently dominates existing research.

referenceLim (2012) studied the relationship between psychological biases and investor behavior within the Malaysian stock market.

The Influence of Behavioral Biases on Investment Decisions jmsr-online.com Journal of Management and Strategy Research Jul 8, 2025 2 facts

perspectiveThere is an urgent need to design ecosystems that support bias-aware, informed, and responsible investor behavior in an era where investing is increasingly democratized but psychologically complex.

referenceThe conceptual paper 'The Influence of Behavioral Biases on Investment Decisions' utilizes Prospect Theory and Dual-Process Theory to construct a framework explaining how intuitive and analytical thinking shape investment behavior.

Influence of behavioral biases on investment decisions. The ... revistas.usc.gal Revistas USC 2 facts

referenceH. Shefrin and M. Statman's 1985 paper 'The disposition to sell winners too early and ride losers too long: Theory and evidence' identifies the disposition effect in investment behavior.

referenceThe article 'Influence of behavioral biases on investment decisions. The importance of financial education in times of crisis' cites various foundational works in behavioral finance, including research by Barber and Odean (2013) on individual investor behavior, Asch (1955) on social pressure, and Blasco and Ferreruela (2017) on why investors behave as they do.

The Influence of Cognitive Biases on Investment Decisions legfin.in LegFin Aug 21, 2024 1 fact

claimThe study 'Behavioral Economics: The Influence of Cognitive Biases on Investment Decisions' identifies overconfidence, loss aversion, and herd mentality as common cognitive biases that influence investor behavior during market booms and busts.

Behavioral finance: the impact of cognitive biases | EDC Paris ... edcparis.edu EDC Paris Business School Sep 2, 2024 1 fact

claimBehavioral finance aims to explain market anomalies, such as sharp rises or falls in share prices, by demonstrating that psychological influences and prejudices affect investor behavior.