Access the full text.
Sign up today, get DeepDyve free for 14 days.
B. Barber, Terrance Odean, Paul Thomas, David Moore, Paine Webber, Del Guercio, David Hirshleifer, Andrew Karolyi, Tim Loughran, Edward Opton, Sylvester Schieber, A. Shleifer, Martha Starr-Mccluer, Richard Thaler, Luis Viceira (2001)
Boys Will Be Boys: Gender, Overconfidence, and Common Stock Investment* the Gallup Organization for Providing Survey Data. We Appreciate the Comments of Diane
(2011)
Exploring investors’ behaviour: evidence from Amman stock exchange
D. Kahneman, A. Tversky (1982)
The simulation heuristic
A. Masini, Emanuela Menichetti (2012)
The impact of behavioural factors in the renewable energy investment decision making process: Conceptual framework and empirical findingsEnergy Policy, 40
A. Jagongo, V. Mutswenje (2014)
A Survey of the Factors Influencing Investment Decisions: The Case of Individual Investors at the NSE
Robert Gertner, Bengt Holmstrom
Herd Behavior and Investment
Bright Obuobi, Emmanuel Nketiah, Faustina Awuah, Adelaide Amadi (2020)
Recapitalization of Banks: Analysis of the Ghana Banking IndustryOpen Journal of Business and Management
Abhijeet Chandra (2008)
Decision Making in the Stock Market: Incorporating Psychology with FinanceERN: Behavioral Economics (Topic)
J. Andersen (2007)
Detecting Anchoring in Financial MarketsJournal of Behavioral Finance, 11
Gong-meng Chen, Kenneth Kim, John Nofsinger, Oliver Rui (2007)
Trading Performance, Disposition Effect, Overconfidence, Representativeness Bias, and Experience of Emerging Market InvestorsFEN: Behavioral Finance (Topic)
D. Scharfstein, J. Stein (1990)
Herd Behavior and InvestmentThe American Economic Review, 80
Samuel Baaye, J. Sanny (2019)
Despite Recent Banking Shake-up, Ghanaians Still See Banks as their Safest Options
X. Lim (2011)
History of the Efficient Market Hypothesis
John Binder (1997)
The Event Study Methodology Since 1969Review of Quantitative Finance and Accounting, 11
Ghulam Shaikh, Naveeda Katpar, M. Kalhoro, Yusira Abro, Ghulam Phanwar (2019)
Do behavioral biases in gender differences affect investment decisions?Sociology International Journal
J. Nelson (2015)
Are Women Really More Risk‐Averse than Men? A Re‐Analysis of the Literature Using Expanded MethodsERN: Other Econometrics: Multiple Equation Models (Topic)
Talal Alquraan, Ahmad Alqisie, Amjad Shorafa (2016)
Do Behavioral Finance Factors Influence Stock Investment Decisions of Individual Investors? (Evidences from Saudi Stock Market)
Michael Rozeff, William Kinney (1976)
Capital market seasonality: The case of stock returnsJournal of Financial Economics, 3
Jane Wamae, M. Student (2013)
BEHAVIOURAL FACTORS INFLUENCING INVESTMENT DECISION IN STOCK MARKET: A SURVEY OF INVESTMENT BANKS IN KENYA
The Quarterly Journal of Economics, 116
A. Tversky, D. Kahneman (1971)
BELIEF IN THE LAW OF SMALL NUMBERSPediatrics
Joseph Tetteh, Aku Hayfron (2017)
Investor Behavioural Pattern: An Empirical Study of the Ghana Stock MarketTHE JOURNAL OF APPLIED BUSINESS AND ECONOMICS, 19
(2018)
Behavioral finance, investors’ psychology and investment decision making in capital markets: an evidence through ethnography and semi-structured interviews
Journal of Economic Perspectives, 17
H. Baker, M. Hargrove, John Haslem (1977)
An Empirical Analysis of the Risk-Return Preferences of Individual InvestorsJournal of Financial and Quantitative Analysis, 12
E. Fama (1965)
Random Walks in Stock Market PricesFinancial Analysts Journal, 21
European Financial Management
H. Seyhun (2007)
Insider Trading and Effectiveness of Chinese Walls in Securities FirmsIO: Firm Structure
R. Thaler (1999)
Mental accounting mattersJournal of Behavioral Decision Making, 12
D. Jurevičienė, O. Ivanova (2013)
Behavioural Finance: Theory and SurveyMokslas - Lietuvos Ateitis, 5
D. Hirshleifer, S. Teoh (2008)
Thought and Behavior Contagion in Capital MarketsBehavioral & Experimental Finance (Editor's Choice) eJournal
A. Tversky, D. Kahneman (1992)
Advances in prospect theory: Cumulative representation of uncertaintyJournal of Risk and Uncertainty, 5
Journal of Economic Perspectives—Volume 17, Number 1—Winter 2003—Pages 83–104 From Ef � cient Markets Theory to Behavioral Finance
The finance literature is awash with papers bordering on the classical assumption that investors are rational in their decision-making, and hence, would always take decisions rationally given the right information, thus making the stock market efficient. This assumption has, however, been found to be at least inadequate given the fact that investors are complex psychological beings full of emotions. This paper aims to investigate the psychological factors that tend to influence the decisions of investors.Design/methodology/approachThe study used a questionnaire to survey a total of 350 investors holding stocks of listed banks on the Ghana Stock Exchange (GSE).FindingsThe study found the existence of various behavioural biases among the investors surveyed. The most dominant factor or bias found to be influencing investment decisions of respondents was herding with nearly 62% weight. Again, biases such as regret aversion and gambler’s fallacy were also found to strongly influence the decisions of investors, along with mental accounting, overconfidence and anchoring.Practical implicationsThe presence of these behavioural biases, therefore suggests that investors do not always take rational decisions, and hence, making the stock market efficient and that as psychological beings, their investment decisions are impacted strongly by their psychology.Originality/valueThe study used a questionnaire to survey a total of 350 investors holding stocks of listed banks on the GSE with a special focus on overconfidence, anchoring, herding, gambler’s fallacy, mental accounting and regret aversion as the variables of interest, the first of its kind in Ghana.
Qualitative Research in Financial Markets – Emerald Publishing
Published: Jul 27, 2021
Keywords: Ghana; Decision-making; Investment; Behavioural factors
Read and print from thousands of top scholarly journals.
Already have an account? Log in
Bookmark this article. You can see your Bookmarks on your DeepDyve Library.
To save an article, log in first, or sign up for a DeepDyve account if you don’t already have one.
Copy and paste the desired citation format or use the link below to download a file formatted for EndNote
Access the full text.
Sign up today, get DeepDyve free for 14 days.
All DeepDyve websites use cookies to improve your online experience. They were placed on your computer when you launched this website. You can change your cookie settings through your browser.