Financial Behavior

In: Business and Management

Submitted By akithuy
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National Cheng Kung University Institute of International Management Master’s Thesis

Investors’ Psychological Characteristics, Herding Behavior and Investment Performance

Student: Nguyen Thi Lan Huong RA6997113

Advisor: Shao-Chi Chang Hao-Chieh Lin

June, 2011 Acknowledgements

It has been a valuable experience for me to work on this thesis. The completion of this research would not be able without the great help and support from my advisors, committee members and my family. So first of all, I would like to give my appreciation to Professor Shao-Chi Chang and Professor Hao-Chieh Lin, my respectable advisors, for their kind help and guidance throughout the entire period of writing this study. I would not be able to complete this research without their precious advice. Meanwhile, I would also appreciate Professor Yung-Ming Shiu’s encouragement and insightful comments on my proposal and final defense. I would like to also thank everyone at the Institute of International Management and Business Administration, National Cheng Kung University, who has contributed to the completion of this thesis. Finally, I would like to appreciate my family members, who have offered their constant support for my study here and thank them for be always by my side.

Abstract

Keywords: Personalities, Core self-evaluations, Extraversion, Herding behavior, Individual investors’ performance, Cognitive dissonance, Return, Satisfaction.

This research examined the relationship among investor psychology, herding behavior and investment performance. Four hypotheses were tested using survey data collected from 250 individual investors in Vietnam stock markets. The findings showed that core self evaluations are positively related to herding behavior. In addition,…...

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