The Effect of Behavioral Finance on Stock Investment Decisions
Having understood what EFM is and its limitations, here you will learn about Behavioural Finance Theory and its role in investment decisions. What are the main effects of Behavioural Finance Theory on investors' decisions?
Introduction
Hypotheses of the Research
The first major hypothesis in this research is:
(H0)1: There is no impact of behavioral financial factors on stock investment decision-making at ASE.
The major hypothesis is sub-divided into the following sub-hypotheses:
(H0)1-1:There is no impact of overconfidence on stock investment decision-making at ASE.
(H0)1-2: There is no loss aversion on stock investment decision-making at ASE.
(H0)1-4: There is no impact of risk perception on stock investment decision-making at ASE.
The second major hypothesis:
(H0)2: There is no impact of behavioral finance factors on stock investment decision-making that can be attributed to demographic variables at ASE.