Influence of heuristics and framing factors on speculating and investment behavior: Evidence from individual traders in the Saudi stock market / Ibrahim Tawfeeq Alsedrah

Traditional finance (TF) assumes that people are rational. However, TF ignores the fact that people are human; their decisions, and subsequently, their behaviors, are influenced by emotions and psychology, especially when trading in the stock market. Therefore, Behavioral Finance (BF) has arisen to...

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Bibliographic Details
Main Author:	Alsedrah, Ibrahim Tawfeeq
Format:	Book Section
Language:	English
Published:	Institute of Graduate Studies, UiTM 2016
Subjects:	Investment, capital formation, speculation
Online Access:	http://ir.uitm.edu.my/id/eprint/19719/ http://ir.uitm.edu.my/id/eprint/19719/1/ABS_IBRAHIM%20TAWFEEQ%20ALSEDRAH%20TDRA%20VOL%209%20IGS%2016.pdf

id	uitm-19719
recordtype	eprints
spelling	uitm-197192018-03-13T08:39:55Z http://ir.uitm.edu.my/id/eprint/19719/ Influence of heuristics and framing factors on speculating and investment behavior: Evidence from individual traders in the Saudi stock market / Ibrahim Tawfeeq Alsedrah Alsedrah, Ibrahim Tawfeeq Investment, capital formation, speculation Traditional finance (TF) assumes that people are rational. However, TF ignores the fact that people are human; their decisions, and subsequently, their behaviors, are influenced by emotions and psychology, especially when trading in the stock market. Therefore, Behavioral Finance (BF) has arisen to compliment TF. BF is a relatively new field that applies psychology to financial decisions and subsequently examines its effects on stock prices and the market. Most BF studies are conducted in developed markets, which are dominated by institutional investors. Most of these studies have used the experimental approach, and a few have used observation of trading accounts. However, there remains a lack of quantitative studies using surveys, especially in frontier markets like the Saudi Stock Market (SSM). The SSM is dominated by individuals who control around 90% of the market value. The market has witnessed stock mispricing, market inefficiency and sharp corrections, which have negatively affected individuals’ investments. Irrational behavior on the part of individuals is suspected to be the root of this problem. While many studies that have been published examine rationality in decision making in emerging and developed markets, little is known about the behavior of individuals in the Saudi stock market. In response to these issues, this research aims to determine the degree of heuristics and framing factors exhibited by individuals and to propose a theoretical model that explains the influence of heuristics and framing factors on individual speculating and investment buying behavior simultaneously. It then aims to quantify how much speculation and investment behavior is due to the influence of heuristics and framing factors… Institute of Graduate Studies, UiTM 2016 Book Section PeerReviewed text en http://ir.uitm.edu.my/id/eprint/19719/1/ABS_IBRAHIM%20TAWFEEQ%20ALSEDRAH%20TDRA%20VOL%209%20IGS%2016.pdf Alsedrah, Ibrahim Tawfeeq (2016) Influence of heuristics and framing factors on speculating and investment behavior: Evidence from individual traders in the Saudi stock market / Ibrahim Tawfeeq Alsedrah. In: The Doctoral Research Abstracts. IGS Biannual Publication, 9 (9). Institute of Graduate Studies, UiTM, Shah Alam.
repository_type	Digital Repository
institution_category	Local University
institution	Universiti Teknologi MARA
building	UiTM Institutional Repository
collection	Online Access
language	English
topic	Investment, capital formation, speculation
spellingShingle	Investment, capital formation, speculation Alsedrah, Ibrahim Tawfeeq Influence of heuristics and framing factors on speculating and investment behavior: Evidence from individual traders in the Saudi stock market / Ibrahim Tawfeeq Alsedrah
description	Traditional finance (TF) assumes that people are rational. However, TF ignores the fact that people are human; their decisions, and subsequently, their behaviors, are influenced by emotions and psychology, especially when trading in the stock market. Therefore, Behavioral Finance (BF) has arisen to compliment TF. BF is a relatively new field that applies psychology to financial decisions and subsequently examines its effects on stock prices and the market. Most BF studies are conducted in developed markets, which are dominated by institutional investors. Most of these studies have used the experimental approach, and a few have used observation of trading accounts. However, there remains a lack of quantitative studies using surveys, especially in frontier markets like the Saudi Stock Market (SSM). The SSM is dominated by individuals who control around 90% of the market value. The market has witnessed stock mispricing, market inefficiency and sharp corrections, which have negatively affected individuals’ investments. Irrational behavior on the part of individuals is suspected to be the root of this problem. While many studies that have been published examine rationality in decision making in emerging and developed markets, little is known about the behavior of individuals in the Saudi stock market. In response to these issues, this research aims to determine the degree of heuristics and framing factors exhibited by individuals and to propose a theoretical model that explains the influence of heuristics and framing factors on individual speculating and investment buying behavior simultaneously. It then aims to quantify how much speculation and investment behavior is due to the influence of heuristics and framing factors…
format	Book Section
author	Alsedrah, Ibrahim Tawfeeq
author_facet	Alsedrah, Ibrahim Tawfeeq
author_sort	Alsedrah, Ibrahim Tawfeeq
title	Influence of heuristics and framing factors on speculating and investment behavior: Evidence from individual traders in the Saudi stock market / Ibrahim Tawfeeq Alsedrah
title_short	Influence of heuristics and framing factors on speculating and investment behavior: Evidence from individual traders in the Saudi stock market / Ibrahim Tawfeeq Alsedrah
title_full	Influence of heuristics and framing factors on speculating and investment behavior: Evidence from individual traders in the Saudi stock market / Ibrahim Tawfeeq Alsedrah
title_fullStr	Influence of heuristics and framing factors on speculating and investment behavior: Evidence from individual traders in the Saudi stock market / Ibrahim Tawfeeq Alsedrah
title_full_unstemmed	Influence of heuristics and framing factors on speculating and investment behavior: Evidence from individual traders in the Saudi stock market / Ibrahim Tawfeeq Alsedrah
title_sort	influence of heuristics and framing factors on speculating and investment behavior: evidence from individual traders in the saudi stock market / ibrahim tawfeeq alsedrah
publisher	Institute of Graduate Studies, UiTM
publishDate	2016
url	http://ir.uitm.edu.my/id/eprint/19719/ http://ir.uitm.edu.my/id/eprint/19719/1/ABS_IBRAHIM%20TAWFEEQ%20ALSEDRAH%20TDRA%20VOL%209%20IGS%2016.pdf
first_indexed	2023-09-18T23:03:08Z
last_indexed	2023-09-18T23:03:08Z
_version_	1777418306772271104

Influence of heuristics and framing factors on speculating and investment behavior: Evidence from individual traders in the Saudi stock market / Ibrahim Tawfeeq Alsedrah

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