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Volume VI Issue I 2020

Volume VI Issue I 2020
BEHAVIOURAL FINANCE: A STUDY ON INFLUENCE OF BEHAVIOURAL FACTORS ON INVESTORS DECISIONS USING STRUCTURAL EQUATION MODELLING (SEM)

Year:2020 Volume VI Issue I

Print ISSN :2454-6542,Online ISSN:2454-6542

Received on:25th Oct 2019, Received in Revised Form:30th Dec 2019, Accepted On:19th Jan 2020

Dr. R. Suyam Praba
Bharathiar School of Management and Entrepreneur Development, Bharathiar University, Coimbatore, Tamil Nadu, India

Corresponding Author: suyam.praba@gmail.com

Abstract

This article analyses the impact of behavioural factors on investment decisions of retail investors. Seven behavioural factors of investment were identified and included in the research such as Cognitive Factor, Attitude Factor, Herding Factor, Emotional Factor, Risk Factor, Economic Factor and Market Factor. To achieve this, 405 investors from Coimbatore city, having different socio economic profiles were surveyed to understand the influence of behavioural factors over their investment decisions. The results highlight that market, economic, risk, cognitive, attitude and herding factor has influence on the behavioural biases on investment decisions of retail investors. The model altogether explains 66 percent of the behavioural biases that influences the investment decisions of retail investors.

Keywords

Investment behaviour, behavioural bias, demographic characteristics, SEM, Investment decision

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