tailieunhanh - An empirical examination of the impact of locus of control on investor behavioral baises

The purpose of this paper is to examine the relationship between locus of control and behavioral biases (emotional and cognitive) in investor decision-making. Our research involved three stages. | An empirical examination of the impact of locus of control on investor behavioral baises International Journal of Management IJM Volume 11 Issue 1 January 2020 pp. 97 106 Article ID IJM_11_01_010 Available online at http ijm JType IJM amp VType 11 amp IType 1 Journal Impact Factor 2019 Calculated by GISI ISSN Print 0976-6502 and ISSN Online 0976-6510 IAEME Publication Scopus Indexed AN EMPIRICAL EXAMINATION OF THE IMPACT OF LOCUS OF CONTROL ON INVESTOR BEHAVIORAL BAISES Anu Singh Lather Vice Chancellor Ambedkar University Delhi India Shilpa Jain University School of Management Studies Guru Gobind Singh IP University India Shivani Anand University School of Management Studies Guru Gobind Singh IP University India ABSTRACT The purpose of this paper is to examine the relationship between locus of control and behavioral biases emotional and cognitive in investor decision-making. Our research involved three stages. In the first stage we undertook an exhaustive review of the existing literature to identify 20 commonly occurring biases in investor decision making. In the second stage we individually studied each bias to identify and develop instruments for measuring these biases in investor decision making. During the pilot phase based on exploratory factor analysis some of these biases were clubbed together. Confirmatory factor analysis was conducted to develop a validated instrument for measuring these biases. In stage three the finalized questionnaire along with Levenson s locus of control was administered on a group of investors across the country and 618 responses were received. The results of this study have revealed underlying patterns within biases based on the Individual Control Powerful others and Chance control. Investors with a high score on individual control showed significant differences and had a stronger inclination to being prone to Mental Accounting Self Control Framing Illusion of Control Regret .

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