Behavioural finance deals with how emotions and cognitive errors influence investment decisions (TverskyandKahneman, 1986). Behavioral finance theories state that various factors influence investor’s behaviour. Investment decisions depend on motivational factors and efforts that the investor is making to exercise. The reason for the investor to invest is known as investment intention. Investment intentions are related to personal investment and portfolio management. Investment intentions are generally divided as short term and long term investment intentions. Short term investment intention refers to intentions towards short term investments that have greater liquidity, give quick returns and involve a shorter period of time. Long term investment intention refers to intentions towards investing in long term investments that are held for a longer period of time, have low liquidity and usually have stable returns. The major aim of the research is to identify the impact of behavioural factors on the investment intentions, more specifically on short term intention as well as long term intention. Questionnaires were used for data collection and 200 equity investors from Coimbatore city were considered for the study. Regression was used for analysis and it was identified that behavioural factors impact short term investment intention as well as long term investment intention of equity investors.
Cite this article:
Sashikala V., P. Chitramani. The Impact of Behavioural Factors on Investment Intention of Equity Investors. Asian Journal of Management. 2018; 9(1):183-188. doi: 10.5958/2321-5763.2018.00028.8