<p>Bachelor thesis within Business Administration</p><p>Title: Behavioral Finance – The Student Perspective</p><p>Authors: Kamran Sairafi, Karl Selleby, Thom Ståhl</p><p>Tutor: Urban Österlund</p><p>Date: 2008-05-30</p><p>Background: History is full of examples on how humans can create investment</p><p>bubbles through speculation; from the Dutch tulip mania to the</p><p>Dot Com bubble humans have proven to be capable of creating</p><p>economical chaos. Classical economical theories hold the assumption</p><p>that individuals act rationally regarding decisions of an</p><p>economical nature. Since the information on the stock market is</p><p>available to everyone who seeks it, the appearance of investment</p><p>bubbles should not be possible. Behavioral finance is an academic</p><p>branch which seeks to explore these phenomenons through the</p><p>psychological factors affecting humans in investment decisions.</p><p>Purpose: The purpose of the report is twofold. Firstly it is to examine the</p><p>characteristics of investment interested business students enrolled</p><p>at Jönköping International Business School. Secondly it looks into</p><p>the decision-making process and choices of the population</p><p>from the perspective of behavioral finance.</p><p>Method: This research holds an abductive approach and is based on qualitative</p><p>data. Data collection was done through an Internet-based</p><p>questionnaire containing several different questions on the areas</p><p>related to the inquiries. In some cases statistical analysis was conducted</p><p>to test for significant correlation between key characteristics.</p><p>Results: A statistically proven correlation could be discerned between</p><p>trading experience and frequency; for each additional year an individual</p><p>engaged in trading the frequency increased. Herd behavior</p><p>was detected in a majority of the sample. When faced with a</p><p>scenario in which their immediate surrounding opposed their own</p><p>analysis of a stock, the greater part of the sample would reconsider</p><p>their position. Two main sub-groups were detected. The first</p><p>was characterized by its high tolerance of risk; the second subgroup</p><p>was characterized by its inconsistency in behavior.</p><p>Conclusions: This paper found that the behavior of respondents in the chosen</p><p>population was best described as “student behavior”; a somehow</p><p>irrational behavior explained by the learning process in which</p><p>business students exist.</p>
| Identifer | oai:union.ndltd.org:UPSALLA/oai:DiVA.org:hj-1500 |
| Date | January 2008 |
| Creators | Sairafi, Kamran, Selleby, Karl, Ståhl, Thom |
| Publisher | Jönköping University, JIBS, Business Administration, Jönköping University, JIBS, Business Administration, Jönköping University, JIBS, Business Administration |
| Source Sets | DiVA Archive at Upsalla University |
| Language | English |
| Detected Language | English |
| Type | Student thesis, text |
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