Analysis of investment behaviour in Finland: behavioural bias affecting investment decisions.
Demidova, Valentina (2022)
2022
All rights reserved. This publication is copyrighted. You may download, display and print it for Your own personal use. Commercial use is prohibited.
Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-2022060214785
https://urn.fi/URN:NBN:fi:amk-2022060214785
Tiivistelmä
This quantitative study is aimed at analysing the topic of behavioural biases and focusing on psychological point of view to identify external and internal factors affecting both ra-tional and irrational traders’ behaviour in Finland. The limitations were imposed on the population of the research: only Finnish investors were polled. The study addresses two research questions:
• What is the main behavioural bias affecting investing behaviour of Finnish people?
• What is the relationship between the main bias, that affects Finnish investors’ behaviour the most, and Finnish investors’ qualification?
In this dissertation, the author mostly relies on the concept of division and description of behavioural biases that was described by Michael Pompian. Overall, 20 biases are reviewed and analysed. The empirical part was conducted using online survey with the aim to receive information about 3 types of variables: demographical, qualification in finance and behav-ioural biases that consisted of 20 variables. The data was analysed via SPSS tool by com-paring means with confidence intervals of the behavioural biases’ variables and calculating correlation coefficient to find the relation between behavioural bias exposure and investors’ qualification. The main findings of the study imply that the self-control bias is the one Finn-ish investors exposure the most and this bias exposure is very weakly correlated with indi-cators of investors’ qualification. In conclusion, the aim of the research was accomplished, and research questions were answered in full. However, the topic of behavioural biases af-fecting investment behaviour can be analysed further, thereof the author identified topics for future study that are derived from the results of this dissertation.
• What is the main behavioural bias affecting investing behaviour of Finnish people?
• What is the relationship between the main bias, that affects Finnish investors’ behaviour the most, and Finnish investors’ qualification?
In this dissertation, the author mostly relies on the concept of division and description of behavioural biases that was described by Michael Pompian. Overall, 20 biases are reviewed and analysed. The empirical part was conducted using online survey with the aim to receive information about 3 types of variables: demographical, qualification in finance and behav-ioural biases that consisted of 20 variables. The data was analysed via SPSS tool by com-paring means with confidence intervals of the behavioural biases’ variables and calculating correlation coefficient to find the relation between behavioural bias exposure and investors’ qualification. The main findings of the study imply that the self-control bias is the one Finn-ish investors exposure the most and this bias exposure is very weakly correlated with indi-cators of investors’ qualification. In conclusion, the aim of the research was accomplished, and research questions were answered in full. However, the topic of behavioural biases af-fecting investment behaviour can be analysed further, thereof the author identified topics for future study that are derived from the results of this dissertation.