Analysis of Behavioural Factors Influencing Investment Decisions: A Literature Review

Kód výsledku v IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F00216305%3A26510%2F22%3APU145352" target="_blank" >RIV/00216305:26510/22:PU145352 - isvavai.cz</a>

Výsledek na webu

<a href="https://trends.fbm.vutbr.cz/index.php/trends/article/view/611" target="_blank" >https://trends.fbm.vutbr.cz/index.php/trends/article/view/611</a>

DOI - Digital Object Identifier

<a href="http://dx.doi.org/10.13164/trends.2022.39.47" target="_blank" >10.13164/trends.2022.39.47</a>

Jazyk výsledku

angličtina

Název v původním jazyce

Analysis of Behavioural Factors Influencing Investment Decisions: A Literature Review

Popis výsledku v původním jazyce

Purpose of the article: The aim of the article is a critical analysis of the views of various authors who have linked their research activities to the topic of behavioural finance, behavioural biases, and risk perceptions in financial markets. Methodology/methods: Qualitative data were aggregated through the method of a systematic review with limits set. A total of 23 papers and publications were located and reviewed. In the paper, the author used logical methods of secondary research such as analysis and synthesis, i.e.the division of the object of research into individual elements and, conversely, the monitoring of connections between individual components (Hendl, 2005). Scientific aim: The scientific benefit is a detailed comprehensive overview of biases that can affect investors’ behaviour and risk perception, and a demonstration of risk understanding approaches. The report can serve as a basis for further research and scientific work. Each topic is given the perspective of different authors, which supports the objectivity of the conclusions. Findings: Based on a literature review by multiple authors, the author defined the main behavioural biases. Some of the authors categorise or classify individual biases according to whether they are based on feelings or facts, or according to whether they are heuristics, i.e. mental abbreviations for solving a problem, or cognitive bias, which may be the result of erroneous heuristics. Furthermore, the author found that investor’s demographic characteristics, such as age, marital status or education, have a direct impact on his behaviour. The concept of risk can be understood as a state of ignorance of the decision maker, as a variance of possible outcomes, as a danger of negative deviation or as a danger of wrong decision. The perception of risk can be divided to “Risk capacity” – ability to take a risk, and “Risk appetite” – the amount of risk an investor is willing to take in order to gain a reward. Conclusions: The auth

Název v anglickém jazyce

Analysis of Behavioural Factors Influencing Investment Decisions: A Literature Review

Popis výsledku anglicky

Purpose of the article: The aim of the article is a critical analysis of the views of various authors who have linked their research activities to the topic of behavioural finance, behavioural biases, and risk perceptions in financial markets. Methodology/methods: Qualitative data were aggregated through the method of a systematic review with limits set. A total of 23 papers and publications were located and reviewed. In the paper, the author used logical methods of secondary research such as analysis and synthesis, i.e.the division of the object of research into individual elements and, conversely, the monitoring of connections between individual components (Hendl, 2005). Scientific aim: The scientific benefit is a detailed comprehensive overview of biases that can affect investors’ behaviour and risk perception, and a demonstration of risk understanding approaches. The report can serve as a basis for further research and scientific work. Each topic is given the perspective of different authors, which supports the objectivity of the conclusions. Findings: Based on a literature review by multiple authors, the author defined the main behavioural biases. Some of the authors categorise or classify individual biases according to whether they are based on feelings or facts, or according to whether they are heuristics, i.e. mental abbreviations for solving a problem, or cognitive bias, which may be the result of erroneous heuristics. Furthermore, the author found that investor’s demographic characteristics, such as age, marital status or education, have a direct impact on his behaviour. The concept of risk can be understood as a state of ignorance of the decision maker, as a variance of possible outcomes, as a danger of negative deviation or as a danger of wrong decision. The perception of risk can be divided to “Risk capacity” – ability to take a risk, and “Risk appetite” – the amount of risk an investor is willing to take in order to gain a reward. Conclusions: The auth

Druh

J_ost - Ostatní články v recenzovaných periodicích

CEP obor

—

OECD FORD obor

50204 - Business and management

Projekt

—

Návaznosti

S - Specificky vyzkum na vysokych skolach

Rok uplatnění

2022

Kód důvěrnosti údajů

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Název periodika

Trends in Economics and Management

ISSN

2336-6508

e-ISSN

—

Svazek periodika

16

Číslo periodika v rámci svazku

39

Stát vydavatele periodika

CZ - Česká republika

Počet stran výsledku

90

Strana od-do

47-56

Kód UT WoS článku

—

EID výsledku v databázi Scopus

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