Hi,

I think you may benefit of this paper:

M A Serfling "CEO age and the riskiness of corporate policies", Journal of corporate finance, 2014, 25, p 251-273.

Best regards.

Dear Khan

it is a long story about behavioral finance in investing decision

the traditional finance assumes that people is rational in their investing decision in following with no boundary of information and knownledge, that is not true for the real market where exist the asymetric information or other friction that prevent the high information efficiency. Besides that investor do not always act as they think

the behavioral finance assumes that people is irrational and they are faced to the limitation of information, that is seemly more realistic. Besides the three kinds of investors including risk averse, risk neutral and risk seeker, there is loss aversion investor. Which also creates many kinds of irrational actions of investors.

thus, i suggest you take time to learn more about traditional finance then to behavioral finance for a throughful understand 

best

Canh

Dear Khan,

Hereby I have attached the extract of what I prepared for my research proposal using the information taken from the CFA institute website. Behavioral biases are broadly categorized into two categories namely cognitive errors and emotional biases. Cognitive errors can be minimized via education, training etc. where emotional biases cannot. Behavioral biases coming under each category is shown through the diagram. 

Hope this may be helpful for you.

Regards,

Sewwandi.

HI,

You may also be intetrested by these papers:

U malmendier, G Tate, "CEO Overconfidence and corporate investrment", Journal of finance, 2005, 60 , p 2881-2700

U malmendier, G Tate,  and J Yan, " Overconfidence and early life experience: The effect of managerial traits on corporate financial policies ", Journal of finance, 2011, 66 , p 1687 -1733.

 Best regards

khan, I have been doing research about this topic and i found so many journals about that if you really need i could share the copy to you and email it to you..

in behavior things you can try to take Individual locus control as another factor, my thesis was writing about the effect of terror management theory on investor decision making..

Hi,

Actually, there are n no. of factors which affect the investment decision of an individual. According to traditional finance theories, investors are rational and their decisions based on just risk and return while behavioral finance assumes that investors do not always act rationally rather their decisions are also driven by emotions.

 Emotions of individuals depend on their personality type, demographics, socio-economics, heuristics (e.g. overconfidence, representative bias, socialization), risk attitude, financial behavior, investment horizon, etc.

Hi,

You may be interested by this paper:

Individual Investor Activity and Performance.

By: Dahlquist, Magnus; Martinez, José Vicente; Söderlind, Paul. Review of Financial Studies. Mar2017, Vol. 30 Issue 3, p866-899. 34p. DOI: 10.1093/rfs/hhw093.

Best regards