Volume : V, Issue : VII, July - 2015

Analysis of Investor‘s Decision Making Patterns by Applying Behavioral Finance Factors: Overconfidence&Herd Behavior Bias

Anurag Shukla

Abstract :

<p> Decision–making can be defined as the process of choosing aparticular alternative from a number of alternatives. It is an activity that follows proper evaluation of all the alternatives and select best alternative. Behavioral finance is a relatively new field that seeks to combine behavioral and cognitive psychological theory with conventional economics and finance to provide explanations for why people make irrational financial decisions. In this research paper we will discuss some of the underlying reasons and biases that cause some people to behave irrationally. Humanbeings are susceptible to numerous behavior albiases which became counterproductive tothe wealthmaximization principles leading to irrational behavior. This research examines the meaning and importance of behavioral finance andits applicationin investment decisions of investors in Kanpur.</p>

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Article: Download PDF   DOI : 10.36106/ijar  

Cite This Article:

ANURAG SHUKLA Analysis of Investor¥s Decision Making Patterns by Applying Behavioral Finance Factors: Overconfidence&Herd Behavior Bias Indian Journal of Applied Research, Vol.5, Issue : 7 July 2015

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