| Titre : |
WHAT CAN BE THE IMPACT OF EMOTIONS IN INDIVIDUAL INVESTORS DECISION-MAKING? HOW CAN THE INDIVIDUAL INVESTORS GO THROUGH THEIR BIASES? |
| Type de document : |
Mémoire |
| Auteurs : |
Marc-Olivier BESSE NGNIAH, Auteur |
| Année de publication : |
2023 |
| Importance : |
35p. |
| Note générale : |
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| Langues : |
Français (fre) Langues originales : Anglais (eng) |
| Mots-clés : |
Management
FINANCE D'ENTREPRISE ; FINANCE DE MARCHE ; INVESTISSEMENT
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| Résumé : |
This dissertation explores how individual investors' biases impact their investment decision?making and investment performance. By building on previous research in behavioral finance, individual biases, and investment decision-making, the study employs a mixed-method approach that combines qualitative and quantitative data analysis techniques. Surveys and behavioral experiences (through interviews) with individual investors are used to collect qualitative data, while statistical analysis of investment data provides quantitative insights. The study finds that individual investors often exhibit biases such as overconfidence, loss aversion, and herding behavior, which can lead to suboptimal investment decisions. These biases are prevalent in the investment decision-making process and can negatively impact investment performance. The main finding of the study is that individual investors who are aware of their biases and take steps to mitigate them are more likely to achieve better investment performance. This implies that education and training on behavioral biases and how to recognize and counteract them would benefit individual investors. Financial advisors also have a role to play in mitigating biases and providing clients with the necessary tools to make informed investment decisions. The study suggests that financial advisors should incorporate behavioral finance insights into their practice, enabling them to recognize and manage clients' biases. This would require financial advisors to adopt systematic processes that account for individual biases in the investment decision-making process. Overall, this study contributes to the growing body of literature on individual investor biases and investment decision-making by providing empirical evidence of the effectiveness of bias mitigation strategies. It highlights the importance of self-awareness and the implementation of systematic processes to mitigate individual biases in the investment decision-making process. The key takeaway from this study is that individual investors can improve their investment performance by acknowledging their biases and taking steps to mitigate them, while financial advisors can better serve their clients by incorporating behavioral finance insights into their practice. In conclusion, the study underscores the need for greater awareness of individual biases in investment decision-making and highlights the potential benefits of bias mitigation strategies. By providing insights into the impact of biases on investment performance, this study provides a foundation for future research that explores additional ways to mitigate biases and improve investment outcomes just like financial adviceor technology-based investment platforms. Ultimately, these findings can help investors and financial advisors make more informed decisions and enhance the overall effectiveness of the investment decision-making process.
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| Programme : |
MSc Finance, Investment & Wealth Management |
| Permalink : |
https://cataloguelibrary.neoma-bs.fr/index.php?lvl=notice_display&id=581900 |
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WHAT CAN BE THE IMPACT OF EMOTIONS IN INDIVIDUAL INVESTORS DECISION-MAKING? HOW CAN THE INDIVIDUAL INVESTORS GO THROUGH THEIR BIASES? / 2023 
