Behavioral Factors Influencing the Investment
Private Investor’s Investment Decisions in The
Vietnamese Stock Market
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Le Thai Nhat, To Hoang Lan, Nguyen Hoang My Ngoc,
Luong Thi Phuc Hung, Le Thi Phuong Thao
Research Summary – Abstract
Individual investment in the stock market and investment decision-making
behavior are closely linked. Taking advantage of the limitations of the existing
literature, this article investigates the relationship between investment decisions
using quantification and causality. Behavioral finance research looks at how
psychological and behavioral factors influence financial decision-making. The
available literature shows that individuals often exhibit biases, such as
overconfidence and fear of loss, which can lead to suboptimal investment
decisions. In addition, social and cultural factors, such as peer pressure and herd
behavior, can also influence financial choices. Studies have also determined that
individuals tend to make decisions based on emotion rather than rational analysis,
which can lead to financial losses. Furthermore, research has shown that
individual behavior can influence the broader financial markets, creating
feedback loops and amplifying market volatility. The findings of behavioral
finance research can inform policymakers and investors on how to improve
financial decision-making and reduce potential risks in the markets.
Using argumentative theories from existing studies, structure the report and
argument based on theory and data. In addition, using data analysis tools and
designing questionnaires based on the main topic and prerequisite questions set
forth to find out the answers to this research paper, thereby making The most
objective assessment based on data and summarizing makes a judgment of the
analyzed data and compared with previous research papers.