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Impact of Behavioral Finance on Investment decisions Investigation in to how psychological factors affect Investment decisions among millennial Investors in Nigeria

Bogunjoko, Atinuke (2021) Impact of Behavioral Finance on Investment decisions Investigation in to how psychological factors affect Investment decisions among millennial Investors in Nigeria. Masters thesis, Dublin, National College of Ireland.

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Abstract

Standard Finance since the 1980’s has had to contend with behavioral finance due to the absence of “reality” in the assumptions made about the financial market. The primary objective of this research is to investiga te the impact of Behavioral Finance on millennial Investment decisions in Nigeria while the secondary objective is to know how correlated the behavioral factors is focus is shifted to a particular generation who a with the sociodemographic characteristics, re called ‘The Millennials’.

The research onion was used to serve as a guide to carry out appropriate strategies to solve the research problem. The researcher used the quantitative methods to answer the research problems. A survey was carried out using exi sting studies in the field of behavioral finance. The survey was distributed mainly to millennials investors as they are the purpose of this research via the WhatsApp platform to various social groups, the number of participants that were able to fill the survey was a 102. The use of Statistical Package for Social Sciences (SPSS) software was used to analyse the data collected using both the Descriptive and Inferential Statistics.

The study showed that Market impact such as overreaction to price changes a nd past trend of stocks had the highest impact on millennial investors while Heuristics, Framing (Prospect theory), Emotions, and Herding have moderate and low impacts on millennial investors. Another key finding was that less experience millennial investo rs (retail) are more likely to be behavioral factors tend to have less impact on older investors influenced by the behavioral factors while the (Institutional) behavioral factors have a significant impact on millennial inv . this research paper, proves that estors decisions, it was also observed that overconfidence (a factor under heuristic) is an underlying factor that heightens the presence of other behavioral factors in millennial investors.

The study fills the intended gap by comparing and contrasting different behavioral factors that possibly impacts millennial investment decision in a developing country such as Nigeria. This research contributes to existing knowledge and bring insights to investors on psychological biases that could affect investment decision. It is also worthy to note that there are other factors which could also contribute to how investors make their decisions.

Item Type: Thesis (Masters)
Uncontrolled Keywords: Standard Finance; Behavioral Finance; Market Efficiency; Millennials; Investment decision making; Rational
Subjects: B Philosophy. Psychology. Religion > Psychology
H Social Sciences > HG Finance
H Social Sciences > HG Finance > Investment
Divisions: School of Business > Master of Science in Finance
Depositing User: Clara Chan
Date Deposited: 24 Feb 2022 17:35
Last Modified: 24 Feb 2022 17:35
URI: http://norma.ncirl.ie/id/eprint/5486

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