Vol: 2, Issue: 4 2012

Page: 10-15

Psychology of Investors Based on Value and Life Style Survey

Monica Sehgal

Received Date: 2012-08-07

Accepted Date: 2012-09-06

Published Date: 2012-10-05

The Investors’ sentiment can be defined as investors’ attitude and opinion towards investing in the Stocks. The aim of this study is to analyse the individual investors’ sentiment and analyses the influence of Market Specific Factors on investors’ sentiment. The Investor’s attitude towards investing is influenced by rumours, intuition, herd behaviour among investors and media coverage of the stock. A simple random sample of 375 Investors in Haryana were chosen for the study. The sample Investors were administered a structured Schedule containing pre-validated scales to measure the Investor Sentiment. Once the constructs were found to be both reliable and valid, the impact of Risk and Cost factors, performance factors and confidence level of Institutional Investors, Best Game in Town factors were tested using bootstrapping method. The Market Specific Factors had a significant impact on the Investors Sentiment.

References

• Allais, M. Le Compretement de I ‘Homme Rationnel devant le Risque, Critique des Postulats et Axiomsde I ‘Ecole Americane?. Econometrica 21, October 1953.
• Black, Fisher ?Noise? The Journal of Finance (July 1986), 529 – 543.
• E. Bennet and M. Selvam, ?Factors Influencing Retail Investors Attitude Towards Investing In EquityStocks: A Study In Haryana, Journal of Modern Accounting and Auditing (To be published in March2011 issue).
• E. Bennet and M. Selvam ?Investors‘ perception towards the influence of SPERTEL risks on the value of equity shares? Conference Proceedings, Knowledge Globalization Conference 2010, Boston,USA
• E. Bennet and M. Selvam ?Investors‘ perception towards the influence of SPERTEL risks on the value of equity shares. A Study conducted at Coimbatore City? International Journal of Research in Commerce and Management (IJRCM) ISSN 0976 2183 ( Accepted to be published in the forthcoming issue).
• Chin W W (1995), ?Partial Least Squares is to LISREL as Principal Components Analysis is to Common Factor Analysis?, Technology Studies, Vol. 2, No. 2, pp. 315-319.
• Chin W W (1998), ?The Partial Least Squares Approach for Structural Equation Modelling?, in George A Marcoulides (Ed.), Modern Methods for Business Research, Lawrence Erlbaum Associates.
• Chin W W and Newsted P R (1999), ?Structural Equation Modeling Analysis with Small Samples Using Partial Least Squares?, in Rick Hoyle (Ed.), Statistical Strategies for Small Sample Research, Sage Publications.
• Chin W W, Marcolin B L and Newsted P R (2003), ?A Partial Least Squares Latent Variable Modeling Approach for Measuring Interaction Effects: Results from a Monte Carlo Simulation Study and an Electronic- Mail Emotion/Adoption Study?, Information Systems Research, Vol. 14, No. 2, pp. 89-217.
• Cronbach L J (1951), ?Coefficient Alpha and Internal Structure of Tests?, Psychometrika, Vol. 16, pp. 297-334.
• Damodaran, Aswath, Damodaran on Valuation. John Wiley and Sons, 1994.
• De Long, J. B., Shleifer, A., Summers, L., Waldmann, R. (1990): Noise Trader Risk in Financial Markets.
• Fornell Claes and Larcker David F (1981), ?Evaluating Structural Equation Models with Unobservable Variables and Measurement Error?, Journal of Marketing Research, Vol. 18, February, pp. 39-50.
• Iihara, Yoshio, Hideaki Kiyoshi Kato and Toshifumi Tokunaga, ?Investors‘ Herding on the Tokyo Stock Exchange,? International Review of Finance, 2:1/2, 71-98, 2001.
• Kahnemann D and A. Tversky ? Prospect Theory: An Analysis of Decision Under Risk?. Econometrica 47 (March 1979), 263 -91.
• Krishnan, R and Booker, D.M. (2002). Investors ‘Use of Analysts ‘Recommendations, Behaviour Research in Accounting, 14, 129 – 158.
• Machine, Mark ?Expected Utility Analysis without the Independent Axiom? Econometrica 50 (March 1982) 277-323.
• Sachithanantham. V, Sayed Jafer, Raja. J and Suresh Kumar A., ? Investors Perception towards Capital Market Reforms in India?, Volume 3 No 1, Jan – June 2007, SMART Journal of Business Management Studies.
• Shanmugam, ?A Study on Investors ‘Awareness of Investment?, 1990. The Center for Innovations in Business and Management Practice 140
• Warren William C. Robert. E. Stevens and C. William Meconky., ( 1996)., ?Using Demographic and the Life Style Analysis to Segment Individual Investors?., Financial Analyst Journal , Volume xxx pp:74- 77