The Role of Heuristic Factors in Investment Performance: Exploring the Market Anomalies in a Volatile Environment
The literature of heuristic factors and investment performance is less confirmatory. That is why it is quite important to explore and quantify the mediation mechanism of stock market anomalies in a volatile environment. For this research, the data were collected through a survey to stock investors w...
| Main Authors: | , , , |
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| Format: | Online |
| Language: | eng |
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Universidad Pedagógica y Tecnológica de Colombia
2022
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| Online Access: | https://revistas.uptc.edu.co/index.php/cenes/article/view/13025 |
| _version_ | 1801705967246639104 |
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| author | Ullah Malik, Kaleem Shaukat Malik, Muhammad Irfan, Muhammad Mehdi, Hussain |
| author_facet | Ullah Malik, Kaleem Shaukat Malik, Muhammad Irfan, Muhammad Mehdi, Hussain |
| author_sort | Ullah Malik, Kaleem |
| collection | OJS |
| description | The literature of heuristic factors and investment performance is less confirmatory. That is why it is quite important to explore and quantify the mediation mechanism of stock market anomalies in a volatile environment. For this research, the data were collected through a survey to stock investors who are actively involved in investing. The findings of this study show that heuristic factors, availability, conservatism, and illusion of control have a significant and positive direct relationship to investment performance. For heuristic factors like anchoring and gambler’s fallacy, there has been an insignificant direct relationship to investment performance. While in indirect relationship to the investment performance, illusion of control and conservatism generate both fundamental and technical anomalies in the market, and they affect the investment performance via technical and fundamental anomalies. Anchoring bias, availability bias and gambler fallacy do not generate both technical and fundamental anomalies in market. Our study result indicates that stock market fundamental and technical anomalies have influenced individual investors’ investment performance.The findings show that there is a significant impact of fundamental anomalies on investment performance. |
| format | Online |
| id | oai:oai.revistas.uptc.edu.co:article-13025 |
| institution | Revista Apuntes del Cenes |
| language | eng |
| publishDate | 2022 |
| publisher | Universidad Pedagógica y Tecnológica de Colombia |
| record_format | ojs |
| spelling | oai:oai.revistas.uptc.edu.co:article-130252023-08-23T23:22:30Z The Role of Heuristic Factors in Investment Performance: Exploring the Market Anomalies in a Volatile Environment El papel de los factores heurísticos en el comportamiento de las inversiones: exploración de las anomalías del mercado de valores en un entorno volátil Ullah Malik, Kaleem Shaukat Malik, Muhammad Irfan, Muhammad Mehdi, Hussain Heuristic factors Technical anomalies fundamental anomalies Stock Exchange Investment Performance Mediation Analysis financial markets Factores heurísticos Anomalías técnicas Anomalías fundamentales Bolsa de valores Rendimiento de las inversiones Análisis de mediación mercados financieros The literature of heuristic factors and investment performance is less confirmatory. That is why it is quite important to explore and quantify the mediation mechanism of stock market anomalies in a volatile environment. For this research, the data were collected through a survey to stock investors who are actively involved in investing. The findings of this study show that heuristic factors, availability, conservatism, and illusion of control have a significant and positive direct relationship to investment performance. For heuristic factors like anchoring and gambler’s fallacy, there has been an insignificant direct relationship to investment performance. While in indirect relationship to the investment performance, illusion of control and conservatism generate both fundamental and technical anomalies in the market, and they affect the investment performance via technical and fundamental anomalies. Anchoring bias, availability bias and gambler fallacy do not generate both technical and fundamental anomalies in market. Our study result indicates that stock market fundamental and technical anomalies have influenced individual investors’ investment performance.The findings show that there is a significant impact of fundamental anomalies on investment performance. La literatura sobre factores heurísticos y el comportamiento de la inversión no es muy precisa. Por eso es muy importante explorar y cuantificar el mecanismo de mediación de las anomalías del mercado de valores en un entorno volátil. Los datos para esta investigación se recopilaron a través de una encuesta a inversores bursátiles que participan activamente en la inversión. Los hallazgos de este estudio indican que los factores heurísticos, la disponibilidad, el conservadurismo y la ilusión de control tienen una relación directa significativa y positiva con el rendimiento de la inversión. Para factores heurísticos como el anclaje y la falacia del apostador, ha habido una relación directa insignificante con el rendimiento de la inversión. Mientras que la ilusión de control y el conservadurismo, en relación indirecta con el rendimiento de la inversión, generan anomalías tanto fundamentales como técnicas en el mercado y afectan el rendimiento de la inversión a través de ambas anomalías. El sesgo de anclaje, el sesgo de disponibilidad y la falacia del apostador no causan anomalías técnicas y fundamentales en el mercado. Los resultados de nuestro estudio indican que las anomalías fundamentales y técnicas del mercado de valores han influido en el rendimiento de inversión de los inversores individuales. Los hallazgos muestran que existe un impacto significativo de las anomalías fundamentales en el rendimiento de la inversión. Universidad Pedagógica y Tecnológica de Colombia 2022-02-22 info:eu-repo/semantics/article info:eu-repo/semantics/publishedVersion Peer reviewed Article application/pdf text/xml https://revistas.uptc.edu.co/index.php/cenes/article/view/13025 10.19053/01203053.v41.n73.2022.13025 Apuntes del Cenes; Vol. 41 No. 73 (2022); 63-84 Apuntes del Cenes; Vol. 41 Núm. 73 (2022); 63-84 2256-5779 0120-3053 eng https://revistas.uptc.edu.co/index.php/cenes/article/view/13025/11466 https://revistas.uptc.edu.co/index.php/cenes/article/view/13025/13357 Copyright (c) 2022 Kaleem Ullah Malik, Muhammad Shaukat Malik, Dr., Muhammad Irfan, Dr., Hussain Mehdi http://creativecommons.org/licenses/by-nc-sa/4.0 |
| spellingShingle | Heuristic factors Technical anomalies fundamental anomalies Stock Exchange Investment Performance Mediation Analysis financial markets Factores heurísticos Anomalías técnicas Anomalías fundamentales Bolsa de valores Rendimiento de las inversiones Análisis de mediación mercados financieros Ullah Malik, Kaleem Shaukat Malik, Muhammad Irfan, Muhammad Mehdi, Hussain The Role of Heuristic Factors in Investment Performance: Exploring the Market Anomalies in a Volatile Environment |
| title | The Role of Heuristic Factors in Investment Performance: Exploring the Market Anomalies in a Volatile Environment |
| title_alt | El papel de los factores heurísticos en el comportamiento de las inversiones: exploración de las anomalías del mercado de valores en un entorno volátil |
| title_full | The Role of Heuristic Factors in Investment Performance: Exploring the Market Anomalies in a Volatile Environment |
| title_fullStr | The Role of Heuristic Factors in Investment Performance: Exploring the Market Anomalies in a Volatile Environment |
| title_full_unstemmed | The Role of Heuristic Factors in Investment Performance: Exploring the Market Anomalies in a Volatile Environment |
| title_short | The Role of Heuristic Factors in Investment Performance: Exploring the Market Anomalies in a Volatile Environment |
| title_sort | role of heuristic factors in investment performance exploring the market anomalies in a volatile environment |
| topic | Heuristic factors Technical anomalies fundamental anomalies Stock Exchange Investment Performance Mediation Analysis financial markets Factores heurísticos Anomalías técnicas Anomalías fundamentales Bolsa de valores Rendimiento de las inversiones Análisis de mediación mercados financieros |
| topic_facet | Heuristic factors Technical anomalies fundamental anomalies Stock Exchange Investment Performance Mediation Analysis financial markets Factores heurísticos Anomalías técnicas Anomalías fundamentales Bolsa de valores Rendimiento de las inversiones Análisis de mediación mercados financieros |
| url | https://revistas.uptc.edu.co/index.php/cenes/article/view/13025 |
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