An Empirical Study of Investor Behavior and Global Finance Data
Year: 2025
Type: article
Abstract: Policymakers, financial analysts, and market participants all need to know how investors behave.Using a comprehensive dataset covering global financial markets, this empirical study investigates theintricate dynamics of investor behavior. This study aims to find patterns, trends, and anomalies thatinfluence investment decisions and market outcomes by employing a combination of behavioralfinance frameworks and quantitative analysis. The study employs a mixed-methods approach thatcombines qualitative behavioral finance theory insights with quantitative analysis.To find patterns in investor behavior, quantitative methods like regression & correlation analysis,time-series, and algorithms of machine learning algorithms are used. To place the empirical findingsin the context of human decision-making, qualitative insights draw on psychological theories likeprospect theory, herd behavior, and cognitive biases. The study makes use of a various range ofdatasets, this include demographic data, indicators of investor behavior, regulatory filings, & historicaldata on the financial market.Reputable financial databases, central banks, regulatory authorities, and exclusive financial institutiondatasets are all sources. A nuanced examination of investor behavior across various market segmentsand economic cycles is made possible by the dataset's comprehensive nature. In order to capturevarious aspects of investor behavior, the study investigates a variety of variables, such as risk appetite,trading activity, portfolio allocation, and response to market events. Volatility measures, tradingvolume, sentiment indices, fund flows, and investor sentiment surveys are all important metrics.The goal of the research is to find recurring patterns and deviations from rational decision-making byanalyzing these variables over time and under various market conditions. The study reveals insightsinto market dynamics such as the impact of information asymmetry on trading behavior, the role ofinvestor sentiment in driving asset prices, and the formation of speculative bubbles through empiricalanalysis.The study provides a nuanced understanding of how psychological factors influence market outcomesand contribute to market inefficiencies by dissecting investor behavior at both the aggregate andindividual levels.
Author: Raj Shree Jaiswal
Language: English
Subfield: Finance
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W6893496065
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