A STUDY ON IMPACT OF BEHAVIOURAL FINANCE ON INVESTMENT DECISION OF SINGLE PARENTS IN SOUTH ASIAN COUNTRIES

Kannadas Sendilvelu; Manita Deepak Shah

doi:10.46281/ijafr.v6i2.1040

Kannadas Sendilvelu SDM- IMD https://orcid.org/0000-0002-9806-1711
Manita Deepak Shah JU https://orcid.org/0000-0003-4184-8609

DOI: https://doi.org/10.46281/ijafr.v6i2.1040

Keywords: Behavioural Finance, Investment Decision, Single Parent.

Abstract

The purpose of this study is to find out the possible impact of behavioural finance on the investment decision of a single parent. As being an earning/working single parent who usually does not have other possible sources in their family, the decision which they take must be a reliable one and cannot afford to get a second chance. In the study, this study is also one of an effort to assess the impact of behavioural biases in the investment decision-making of a single parent. A questionnaire is designed and responses are collected from 203 respondents who prefer to invest where the level of risk is either low or moderate and are more concerned about losses in their investment than substantial gain. Also, most of the respondents were investing in order to meet some specific purpose, for their retirement plan as well as to educate their children. This study concludes by stating that investors’ risk-taking capacity is dependent on their level of income and the sources of income. Although every Individual is subject to some biases, they tend to think more rational way than an average investor in many ways as they know about their requirements and the investment they make.

JEL Classification Codes: G40, G41.

Author Biographies

Kannadas Sendilvelu, SDM- IMD

Assistant Professor of Accounting and Finance, SDM Institute for Management Development, Mysuru, India-570011

Manita Deepak Shah, JU

Professor and Associate Dean, Jain (Deemed to be) University, Bengaluru, India-560069

References

Bansal, R., & Zahera, S. A. (2018). Do investors exhibit behavioral biases in investment decision making? A systematic review. Qualitative Research in Financial Markets, 210-251.

Barber, O. (2011). The Behavior of Individual Investors. In G. Constantinides, & M. H. Stulz, Handbook of the Economics of Finance (pp. 1533-1570). Elsevier.

Christiansen, C., Joensen, J. S., & Rangvid, J. (2011). Understanding the Effects of Marriage and Divorce on Financial Investments: The Role of Background Risk Sharing. Economic Enquiry, 431-447.

Dewan, A., Gayatri, R., & Dewan, R. (2019). A Research on Investment Behavior of Corporate and Individual Investors from Southern India. International Journal of Innovative Technology and Exploring Engineering (IJITEE), 1493-1501.

Budhiraja, K., Raman, T.V. & Bhardwaj, G. N. (2018). IMPACT OF BEHAVIORAL FINANCE IN INVESTMENT DECISION MAKING. International Journal of Civil Engineering and Technology (IJCIET), 1151-1157.

Kansal, P., & Singh, S. (2018). Determinants of overconfidence bias in Indian stock market. Qualitative Research in Financial Markets, 381-394.

Madaan, G., & Singh, S. (2016). Behavioural Biases in Financial Decision Making. International Journal of Financial Research, 1-13.

Rana, S., & Vibha. (2017). Marital Status and Investment Preferences. Online International Interdisciplinary Research Journal, 91-98.

Sahi, S. K., & Arora, A. P. (2012). Psychological biases of individual investors and financial satisfaction. Qualitative Research in Financial Markets, 4(1), 6-25.

Upadhyay, D. (2019). A STUDY ON BEHAVIORAL FINANCE IN INVESTMENT DECISIONS OF INVESTORS IN AHMEDABAD. International Journal of Novel Research and Development, 103-114.

Vasagadekar, P. (2014). A research paper on investment awareness among Indian working women with reference to Pune region. International Journal of Scientific & Engineering Research, 5(6), 1333-1350.

Verma, N. (2016). Impact of Behavioral Biases in Investment Decision and Strategies. Journal of Management Research and Analysis, 28-30.