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VOL. 10, ISSUE 6 (2024)
A study on examining differences in investor behaviour between developed and emerging economies
Authors
Dr. E Apparao
Abstract
This study provides a comprehensive comparative
analysis of individual investor behavior in Developed Economies (DEs) and
Emerging Economies (EEs), identifying systemic divergences driven by
differences in market microstructure, regulatory environments, and prevailing
cultural factors. Through the lens of behavioral finance, the research analyzes
variations in risk tolerance, investment preferences, and the differential
prevalence of cognitive biases. Anticipated findings suggest that investors in
EEs exhibit significantly higher market turnover, heightened risk tolerance,
and a greater propensity for herding behavior amplified by digital social
networks. These behaviors are causally linked to lower financial literacy,
greater information asymmetry, and the socio-cultural dimension of collectivism.
Conversely, DE investors demonstrate more diversified portfolios and behaviors
largely consistent with fundamental investment strategies. The conclusions
underscore the necessity of context-specific financial regulation and targeted
investor education programs in EEs to mitigate behavioral biases that
contribute to endemic market instability and inefficiency.
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Pages:107-112
How to cite this article:
Dr. E Apparao "A study on examining differences in investor behaviour between developed and emerging economies". International Journal of Commerce and Management Research, Vol 10, Issue 6, 2024, Pages 107-112
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