2024, Vol. 5, Issue 2, Part I
Rational evaluation or herding, what do individual investors rely on in stock market investment?
Author(s): K Nirmala and Kiran Kumar PN
Abstract: This study explores the decision-making behaviour of individual investors while making the investment in the stock market, focusing on whether their investment choices are driven by rational evaluation or influenced by herd behaviour. Using data collected directly from two hundred and thirteen (213) individual investors, this research examines the underlying factors that shape their investment decisions. The study uses a range of statistical tools such as descriptive statistics, correlation analysis, regression model and ANOVA for analysing the collected data and for testing the hypotheses. It is found from the study that the individual investors are not evaluating rationally in making their investment decision in the stock market but are influenced by various other factors. The findings will provide valuable insights into the cognitive biases that shape investment decisions and contribute to the ongoing debate on market efficiency and investor behaviour. By highlighting the prevalence of herding versus rational decision-making, this research aims to inform strategies that could enhance market stability and investor education.
Pages: 780-785 | Views: 15 | Downloads: 9
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How to cite this article:
K Nirmala, Kiran Kumar PN. Rational evaluation or herding, what do individual investors rely on in stock market investment?. Asian J Manage Commerce 2024;5(2):780-785.
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