` Gongcheng Kexue Yu Jishu/Advanced Engineering Science
[This article belongs to Volume - 54, Issue - 02]
Gongcheng Kexue Yu Jishu/Advanced Engineering Science
Journal ID : AES-26-12-2022-102

Title : IMPACT OF DEMOGRAPHIC VARIABLES ON BEHAVIORAL DISPOSITIONS OF INDIVIDUAL INVESTORS – AN EMPIRICAL ANALYSIS
Renuka Sharma, Satish Chander Sharma

Abstract :

Behavioural dispositions is a buzzword in the field of behavioural finance. It explains how psychological errors and sentiments of individual investors influence the process of decision- making. According to traditional finance, investors are always rational and they discount every information available in the market. But the same is not true with behavioural finance where investors make irrational decisions because of the several biases prevail. The paper finds out any association between demographic variables and behavioural dispositions of investors. Whether behavioural biases vary according to different demographic factors. A sample of 600 respondents was taken from the city of Gurugram with convenience sampling. Data was analyzed using Anova F-test analyzing the relationship between behavioural dispositions and demographic variables. It is found that herding bias varies according to gender. Anchoring and Representativeness bias varies according to age and investors with a higher level of income depict mental accounting and anchoring bias.