Introduction

The qualitative and behavioral aspects of the investment have been a very hot issue from the investment point of view from a long time period for research purposes. Researchers have been trying to enhance the understanding of how people manage investments in various ways. An extensive body of literature exists that stand to explain how different factors influence the investor’s behavior. Common theme which makes a consensus that, it is mainly the personal characteristics which influence the investment decision making. Many studies have revealed that risk perception determines the long term investment behavior. However, a general question comes in mind that to how much an extent an individual personality aspect may influence the investment intentions. The risk nature and the person’s behavior towards the risk is a very upcoming discussion of the researchers. The Von Neumann and Morgenstern (1947) had discussed about te risk in finance in his utility theory throuhg a model that only the expected utility is the factor that effect the decision making in finance. Allais (1953) was opposed to that theory. He said that to deal with the limited use of the maximization of expected utility in decision making as only criteria, when risky elements are involved in making decisions. Markowitz (1952) had discussed about when an investor faces the need for increasing yields but not wanting the uncertain returns due to risks involved. Many other researchers have also complete this discussion. The Efficient-Markets theory stipulate that stock price changes due to new information. Due to that the investment decisions changes with investor expectations based on new available information (Wärneryd, 2001). While there is no clear true evidence of investor’s confidence (McConnell & Wahal 2000). It integrates the relationship between investment intensions with reference to investor confidence. Analysts’ think that corporate reputation has from time to time been taken into account (Fombrun, 2000 & Mazzola, 2004), reputational perceptions of investors is one area need attention respect to long term investment intensions. The model developed by Sitkin & Weingart (1995) mentions risk perception and propensity are the peacekeeping troops in risk behaviors of uncertain decision-making. Past investment develops the frame for the propensity to risk perception which impact behavioral decision-making. Thus risk orientation and risk perception are decreased to forebear

However.1990) than Type B individuals. 1991) of a desire for sense on the lookout for by some persons in terms of their financial management. For example Carducci and Wong (1998) find that persons having Type A personality are more risk taking in all financial matters. Perdue & Wooten. Wa¨rneryd (1996) says that there is a relationship between the more specific investment risk attitude and the riskiness inborn in investor portfolios. 5 OBJECTIVE OF THE STUDY: STUDY: To find the effects of the following on long term investment decisions. though this may be correlated to Type A persons nursing to have higher levels of income (Thoresen and Low. This research is established by Keller and Siegrist (2006). Literature Review Although an interesting collection of demographic characteristics have been used to explain what drives the investment behavior of individuals. . Schooley and Worden (1996) and Bailey and Kinerson (2005) wind up that there is a strong affiliation between self-assessed risk and investment behavior. (Mayfield. Researches based on the studies have inferred that investment intensions are affected by so many behavioral aspects. and so have complexity matching investments to their preferred level of risk.variables in decision-making behavior under risk and that it must be studies for long term investment intensions. research by Morse (1998) concludes that individuals have difficulty perceiving the actual risk connected with the choice of investments they face. 2008). There is also evidence (Wong and Carducci. A variety of studies have attempted to explore the psychological explanation for investor behavior. who find that one’s financial risk attitude has a positive authority on willingness to accept investment risk and invest in stocks in one’s portfolio. the discussion continues in the literature concerning the mental past history that would accompany this human behavior. But can investors charge risk with any correctness when making investments? Hallahan et al (2004) believe that individuals can self-assess their risk easiness.

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