26 Feb 2020
Dr. Nisha shared few insights on Behavioural Finance
The lecture focused on individuals’ behavioural biases in investment decision-making. She spoke about how to analyse the impact of cognitive biases on trading behaviour, volatility, market returns and portfolio selection.
The aim of her lecture was to investigate the relationship between rational decision-making and behavioural biases among individual investors in India, as well as to examine the influence of demographic variables on rational decision-making process and how those differences manifest themselves in the form of behavioural biases.
Moving further in her lecture, she has revealed the presence of different behavioural biases including overconfidence and self-attribution, the disposition effect, anchoring bias, representativeness, mental accounting, emotional biases and herding among Indian investors. To support that, she iterated that individual investors do not always act rationally. She also proved that financial literacy has a negative association with the disposition effect and herding bias, a positive relation with mental accounting bias, but no significant relation with overconfidence and emotional biases. Age, occupation and investment experience are the most important demographic variables that relate to the behavioural biases of individual investors. Regarding gender, she informed that males are overconfident than females about their knowledge of the stock market. She also explained some new examples of stock market to make the concepts better to students.
At the end, it was a successful guest lecture with a great turnout. The pictures speak for themselves. A huge thanks to Dr. Nisha Goyal for coming all the way from Jain university to deliver such a thought-provoking lecture to our MBA and M.Com. students.
