The impact of behavioral factors on individual investors' decision - making and performance - Evidence from Ho Chi Minh stock exchange
Abstract
Behavioral finance is a new area to examine human behavior in the financial sector. Based on psychology, behavioral theories are applied to determine the factors that influence the behavior of individual investors. The main purpose of the study is to examine the effect of behavioral factors on making individual investors‟ decisions and performance at the HOSE. According to the available theory of behavioral finance, hypotheses are proposed. To test hypotheses, the author collected data through a questionnaire sent to individual investors at HOSE. After data collection, they are entered into SPSS software for analysis. The results show that the four factors of behavioral factors have a positive influence on making individual investors‟ decision and performance at the HOSE, in which the factors having high impact are market and prospect factor.