engleski

Decision making styles of investors in capital market

The question of investor rationality has been deeply challenged by the development of behavioral finance, which leads to a distortion of certain axioms underlying classical economic science. This paper explores investors’ decision-making style in the capital market in Croatia and their tendency to framing. This is a search for individual differences in decision-making process and research of deviations from rationality assumptions as well. The analysis of investors’ decision- making styles points to, in general, the dominance of the rational decision-making style - vigilance. Individual differences reveal that professional, more experienced investors and investors who trade in domestic as well as in foreign markets score higher on rational self- assessed decision-making style.

decision making ; framing ; investors ; behavioural finance

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