Authors: Dimitrios Kourtidis; Željko Ševi?; Prodromos Chatzoglou
Addresses: Department of Accounting, Finance and Risk, Caledonian Business School, Glasgow Caledonian University, Cowcaddens Road, Glasgow G4 0BA, UK. ' Department of Accounting, Finance and Risk, Caledonian Business School, Glasgow Caledonian University, Cowcaddens Road, Glasgow G4 0BA, UK. ' Department of Production and Management Engineering, Democritus University of Thrace, Vasilissis Sofias 12, 67100 Xanthi, Greece
Abstract: This study attempts to group investors into different segments based on their type (professional or individual investors) and, then, to examine whether there are differences in the various psychological biases and personality traits, as well as in their investment behaviour. The behavioural finance literature suggests four main factors that may influence investment behaviour: overconfidence, risk tolerance, self-monitoring and social influence. Adopting this approach, a cluster analysis of data from a representative survey of 345 investors in Greece has confirmed the existence of two main segments of investors: professionals and individuals. The results will expand investors' knowledge about the financial decision-making process and trading behaviour and will also reveal the differences in the trading behaviour between the groups of investors.
Keywords: behavioural finance; trading behaviour; trading activity; professionals; individuals; professional investors; individual investors; psychological biases; personality traits; investment behaviour; overconfidence; risk tolerance; self-monitoring; social influence; Greece.
International Journal of Behavioural Accounting and Finance, 2011 Vol.2 No.3/4, pp.346 - 366
Published online: 20 Jan 2012 *Full-text access for editors Access for subscribers Purchase this article Comment on this article