Purpose Research in the area of behavioral finance has demonstrated that investors exhibit irrational behavior while making investment decisions. Investor behavior usually deviates from logic and reason, and consequently, investors exhibit various behavioral biases which impact their investment decisions. The purpose of this paper is to rank the behavioral biases influencing the investment decision making of individual equity investors from the state of Punjab, India. This research would provide valuable insight into the different behavioral biases to investors and other participants of the capital market and help them in improving investment decisions. Design/methodology/approach The research is conducted on the individual equity investors of Punjab, India. Fuzzy analytic hierarchy process was applied to rank the factors influencing the decision making of individual equity investors of Punjab. The primary factors considered for the study are overconfidence bias, representative bias, anchoring bias, availability bias, regret aversion bias, loss aversion bias, mental accounting bias and herding bias. Findings The three most influential criteria were herding bias, loss aversion bias and overconfidence bias. The five most influential sub-criteria were “I readily sell shares that have increased in value (C61),” “News about the company (Newspapers, TV and magazines) affects my investment decision (C84),” “I invest each element of my investment portfolio separately (C71)” and “I usually hold loosing stock for long time, expecting trend reversal (C52).” Research limitations/implications Although sample survey conducted in the present study was based on a limited sample selected from a particular area that truly represented the total population, it is considered as the limitation of this study. Practical implications The outcome of this research provides investors with a better understanding of behavioral biases that influence their decision making. This study provides them a guideline on different behavioral biases that they should consider while making investment decisions. Originality/value The research model is based on the available literature on behavioral finance and the research results and findings would add value to the existing knowledge base.
Purpose The advocates of behavioural finance have denounced the existing literature on investors’ rationality in the decision-making process and questioned the existence of efficient markets and rational investors. Although diversified research has been conducted in the area of behavioural finance, yet there is a need of further explorations into the field as the available knowledge base is confined to one or a few behavioural biases confronted by investors while making investment decisions. Hence, this study aims to develop a comprehensive, reliable and valid scale to measure the behavioural biases affecting investors’ decision-making process. Design/methodology/approach To develop a comprehensive, reliable and valid scale for measuring the behavioural biases affecting investors’ decision-making process, rigorous multi-stage scale development methodology has been followed. Stage one started with an extensive review of the literature followed by interviews from experienced stockbrokers to clarify construct and getting novel insights about dimensions of behavioural biases. In stage two, 52 items measuring the dimensions of behavioural biases were generated and got evaluated from panel of judges. Pilot testing was done in the third stage which gave a set of 39 items. Finally, in fourth stage, data were collected from 332 individual equity investors on a 7-point Likert scale using the snowball sampling technique. Findings The results of the study highlighted that behavioural biases is a multidimensional phenomenon that significantly affects investors’ decisions and has different dimensions, namely, Availability Bias, Representativeness Bias, Overconfidence Bias, Market Factors, Herding, Anchoring, Mental Accounting, Regret Aversion, Gamblers’ Fallacy and Loss Aversion. The present research has developed a comprehensive, reliable and valid scale for measuring behavioural biases affecting equity investors’ decision-making process. Originality/value Behavioural finance is an emerging area in the field of research particularly in the Indian context which needs further exploration. The present research concentrates on rendering an empirically tested scale to the researchers for measuring the behavioural biases and its impact on investor’s decision-making. Such an instrument can contribute to making progress in the area of behavioural finance and other research studies may also find it useful to achieve their goals.
PurposeIn today's competitive environment, sustainability is talked out in every sphere of life. Sustainability is a key to stability and for that roots are being focused by incorporating sustainability in higher education. The basic purpose of this paper is to prioritize the sustainability drivers in the higher education system. This research will provide fruitful insight into the sustainability drivers in the higher education system to the education industry and policymakers.Design/methodology/approachThe present research is conducted on the 400 students studying in four major universities in the state of Punjab. Fuzzy analytical hierarchy process was applied to prioritize the sustainability drivers in the higher education system. The primary factors considered for the present study include social-people (social responsibility), environmental-planet (sustainable environmental practices) and financial-profit (economic value created).FindingsThe most influential criteria were environmental-planet (sustainable environmental practices) and social-people (social responsibility). The five most influential subcriteria were “Student engagement in eco co-curricular activities (C21)”, Energy efficiency measures (C23)”, “The HEI as a job driver in the city (C11)”, “Total direct energy consumption (C31)” and “Support from the HEI for local initiatives and help in growing the sustainability of the community or region (C12)”.Research limitations/implicationsAlthough the sample survey conducted in this study was focused on a small sample selected from the state of Punjab which genuinely represented the total population, it is still considered as a limitation for the present study.Practical implicationsThe outcome of this research provides policymakers with a better understanding of the sustainability drivers in higher education. This will further help them toward achieving the aim of sustainability.Originality/valueThe present research is based on the available literature on sustainability and the results of the study would add value to the existing knowledge base.
The present study aims at ranking the various factors which affect the stock selection decisions of retail investors in the Indian stock market. Further, the research provides valuable insights into the different factors that affect the stock selection decisions of the equity investors. For this purpose, the data were collected from 168 retail equity investors dealing in the Indian Stock Market. "Fuzzy Analytic Hierarchy Process" was
Absolute, relative, and dual momentum strategies generate significant payoffs in the Indian stock market. However, these payoffs are subjected to severe periodic losses.The present study finds that these losses are predictable and these losses occur when market rebounds after enormous losses. Further, the authors propose an alternative momentum framework, that is, Triple momentum approach to avoid these momentum crashes. Triple momentum strategy not only doubles the Adjusted Sharpe ratio of dual momentum strategy, but also results in significant improvements in higher-order moments and downside risks.
PurposeThis study aims to recognize the current dynamics, prolific contributors and salient trends and propose future research directions in the area of alternative momentum investing.Design/methodology/approachThe study uses a blend of electronic database and forward reference searching to ensure the incorporation of all the significant studies. With the help of the Scopus database, the present study retrieves 122 research papers published from 1999 to 2020.FindingsThe results reveal that alternative momentum investing is an emerging area in the field of momentum investing. However, this area has witnessed an exponential growth in last ten years. The study also finds that North American, West European and East Asian countries dominate in total research publications. Through network citation analysis, the study identifies five major clusters: industrial momentum, earnings momentum, 52-week high momentum, time-series momentum and risk-managed momentum.Research limitations/implicationsThe present review will serve as a guide for financial researchers who intend to work on alternative momentum approaches. The study proposes several unexplored research themes in alternative momentum investing on which future studies can focus.Originality/valueThe study embellishes the existing literature on momentum investing by contributing the first bibliometric review on alternative momentum approaches.
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