An Explorational study on influencing factors in Financial Investment Decisions in Thailand Securities Market

Abstract

            Behavioural finance has been characterized as a marvel where people disregard the basics and make ventures based on feelings. Due to FDI policy Thai economy has inevitably switched to industrial based economy from agricultural economy based. Psychological portfolios of investors play a crucial role in financial investment which includes fear and greed, and can have a significant influence on outcomes. Investor’s character, moods and opinions, attitude and feelings, decisions, perception, and shareholder desires cannot be overlooked. Behavioural and traditional financial systems failed to explain why an individual trade on stocks, investors performance, what makes investors choices of portfolio and how returns vary from each other’s. Corporate finance, numerous studies have shown that acquisitions, mergers, capital structure choices appear to vary from the conventional hypotheses and subsequently it gets to be a confusing circumstance. The main objective of this study is to study how investor’s emotional and psychological factors influences on their investment decisions in securities market. We concentrated on basic factors such as conservatism bias, overconfidence bias, availability bias, herding and level of risk taking to invest on securities market. Study results indicate that appreciation has significant influence on investors psychology followed by to reduce tax, and income generation respectively. Results of the study has provided a valuable information of the investors basic characters and categorical demographics. So that it gives a valuable input to the researchers and peers to understand the characteristics of investor and    advocate how to invest in future.