Practical Applications of Influence of Behavioral Biases and Decision-Making Tools on the Performance of Secondary Equity Investors

Abstract

In Influence of Behavioral Biases and Decision-Making Tools on the Performance of Secondary Equity Investors, from the August 2020 issue of The Journal of Wealth Management, authors R. Renu Isidore (Loyola College), P. Christie (Xavier School of Management), and C. Joe Arun (Loyola College) examine two factors that influence successful investors in India: their biases and their decision-making tools. The authors measured nine behavioral biases and five decision-making tools and used an analysis of variance test to determine which biases and decision-making tools characterize investors who earn high returns from equity investments. The authors offer their findings as a framework to help equity investors earn good returns and be successful in the market.

TOPICS: Wealth management, equity portfolio management, emerging markets