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Title: Investor decision making
Author: Vohra, Shalini
ISNI:       0000 0004 2692 4869
Awarding Body: The University of Manchester
Current Institution: University of Manchester
Date of Award: 2010
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The role of irrational or emotional factors in investor decision making has been well recognised (Thaler, 1999; Kahneman & Tversky, 1979; Shefrin & Statman, 1985). However, existing research fails to adequately take into account the role of corporate reputation. This thesis attempts to overcome this limitation and follows a two stage research design for the same. In the first and qualitative stage, the decision-making of groups of investors was observed by attending the monthly meetings of investment clubs as an observer. The reputation of the company was found to be the most prominent factor influencing decisions on the buying, selling and holding of shares. Prior work on such decisions has often examined investor regret (Shefrin & Statman, 1985; Kahneman & Tversky, 1979; Thaler, 1985). Consequently the second and quantitative stage of this work explores the relevance of corporate reputation to predicting investor regret, an issue that has not been tested previously. Factors identified as important for investor decision making were identified from prior work and the qualitative phase and used to construct a questionnaire administered to a convenience sample of individual investors. A model for predicting investor regret was developed using hierarchical multiple regression. Control measures included were investor's age and gender, risk taking and share price performance. Reputation was measured using a multidimensional brand personality scale. Measures of human personality were also included. Three dimensions of corporate reputation/brand personality agreeableness, enterprise and competence, were found to be significant in the prediction of investor regret. Of these Agreeableness (honest, trustworthy, supportive) had the strongest influence. Thus the significance of corporate reputation for investor decision making as suggested by the qualitative results was supported by the quantitative findings. Partial support was found for the relevance of human personality in predicting investor regret.
Supervisor: Not available Sponsor: Not available
Qualification Name: Thesis (Ph.D.) Qualification Level: Doctoral
EThOS ID:  DOI: Not available