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Cited by 46Financial Markets and Investment StrategiesDecision-Making and Behavioral EconomicsFinancial Literacy, Pension, Retirement Analysis

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Stock Market Investors: Who Is More Rational, and Who Relies on Intuition?

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Hon-Snir, Shlomit, Kudryavtsev, Andrey, Cohen, Gil·2012·International Journal of Economics and Finance
DOI 10.5539/ijef.v4n5p56
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Abstract

Contemporary research documents various psychological aspects of economic and financial thought and decision-making. The main goal of our study is to analyze the effects of five well-documented behavioral biases, namely, disposition effect, herd behavior, availability heuristic, gambler's fallacy and hot hand fallacy, on the mechanism of stock market decision-making, and, in particular, the individual differences in the degrees of these effects. Employing an extensive online survey, we document that on average, active stock market investors exhibit moderate degrees of behavioral biases. Furthermore, we find that, on the one hand, more experienced investors are less affected by behavioral patterns, yet, on the other hand, professional portfolio managers do not behave, in this respect, differently (more rationally) from non-professional investors. We, therefore, infer that investor's experience in stock market matters, but not the

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Metadata

Authors
Hon-Snir, S., Kudryavtsev, A., & Cohen, G.
Affiliations
The Max Stern Yezreel Valley College (IL)
ORCID
Venue
International Journal of Economics and Finance
Publisher
Canadian Center of Science and Education
Published
2012-04-23
Volume
4
Issue
5
ISSN
  • 1916-971X (ISSN-L)
  • 1916-9728
DOI
10.5539/ijef.v4n5p56
OpenAlex
W2061592431
Cited by
46
References
5
Citations by year
2026: 1 · 2025: 1 · 2024: 2 · 2023: 7 · 2022: 1 · 2021: 4 · 2020: 4 · 2019: 4 · 2018: 4 · 2017: 1 · 2016: 3 · 2015: 6 · 2014: 3 · 2013: 4 · 2012: 1
FWCI
7.44
Type
journal article
Language
en
Open access
Licence
cc-by
Locations
International Journal of Economics and Finance (publishedVersion, cc-by)
Topics
  • Social Sciences › Economics, Econometrics and Finance › Finance › Financial Markets and Investment Strategies
  • Social Sciences › Decision Sciences › General Decision Sciences › Decision-Making and Behavioral Economics
  • Social Sciences › Economics, Econometrics and Finance › Finance › Financial Literacy, Pension, Retirement Analysis
Keywords
behavioral biases, stock market investors, disposition effect, herding behavior, availability heuristic, gambler's fallacy, hot hand fallacy, investor experience, individual differences, investor rationality, intuition

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