Symposia & Conferences
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Item Impact of Behavioral Factors on Investment Decisions: Evidence from Western Province Investors in Colombo Stock Exchange (CSE)(Department of Finance, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka., 2025) Mendis, H. N. S.; Weligamage, S. S.Introduction: This study investigates the impact of behavioral factors on investment decisions among investors in the Western Province of Sri Lanka, specifically within the Colombo Stock Exchange (CSE). Behavioral finance, which integrates psychological insights into financial decision-making, challenges traditional financial theories that assume rational investor behavior. The primary objective is to examine how behavioural factors (such as representativeness, availability bias, anchoring, overconfidence, loss aversion, framing effects, mental accounting, and regret aversion) influence investment decisions. Methodology: A structured questionnaire was used to collect quantitative data from 100 investors, employing a snowball sampling method. The data were analyzed using exploratory factor analysis, descriptive factor analysis, and regression analysis to identify the relationships between behavioral factors and investment performance. Findings: It reveals that behavioral biases significantly impact investment decisions, leading to systematic errors and suboptimal outcomes. Overconfidence and anchoring biases were found to have a strong influence, while loss aversion and regret aversion also played critical roles in shaping investor behavior. The study concludes that understanding these factors can help improve investor education and decision-making strategies, ultimately contributing to better financial outcomes and market stability. Conclusion: The study concludes that behavioral factors significantly impact investment decisions among investors in the Colombo Stock Exchange (CSE). Key findings include that loss aversion and regret aversion lead to conservative investment practices and suboptimal outcomes. Overconfidence and anchoring biases result in reliance on easily recalled information or historical performance patterns, causing poor future predictions. Mental accounting influences decision-making by categorizing investments into different "buckets." The disposition effect shows that investors sell winning stocks too early and hold onto losing stocks for too long, negatively impacting performance. Understanding and mitigating these biases can improve investor education and decision-making strategies, contributing to better financial outcomes and market stability. The study highlights the need for tailored investor education programs and incorporating behavioral insights into advisory practices.Item A Study of Behavioral Finance Attributes that Influence the Gold ETF Investments of Indian Investors(9th International Conference on Business and Information (ICBI-2018), Department of Management Studies and Toc H Institute of Science and Technology, India, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2018) Sheeba, K.H.In India, gold ETFs were launched mainly with the objective of increasing the liquidity for the better market efficiency. But, though, traditionally, Indians love to buy gold and they want to possess it, even after assuring the benefits of Gold ETF Investments over the other Investment avenues, there is the lack of pooling of funds towards this sector. In fact, they hardly go for ETFs which is just a piece of paper for them. Conventional Economic theories and its survey reports do not clearly explain the reasons behind this phenomenon. The proposal hence is made to explain the behavioral finance attributes that influences Gold ETF Investments in Indian Investors. The researcher made an attempt to find out the demographical composition of samples and to analyze their quantum of investment towards Gold exchange Traded Funds Investment and the data were analyzed using Exploratory Factor Analysis with the help of SPSS.Item Factors Affecting the Behavior of Investors: Empirical Study Based on Colombo Stock Exchange(Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2016) Fernando, C.S.P.K.; Weerasinghe, W.D.J.D.; Perera, L.A.S.; Weerarathne, D.I.The primary motivation of this research is to examine the investment selection factors which the investors expected to consider as important in an investment decisions and to rank the factors accordingly based on Colombo Stock Exchange (CSE), and to find out whether the investors consider the same pattern of investment selection factors in making the real investment decision. Data for the study were collected from 50 individual retail investors in the Gampaha district through a questionnaire by using convenience sampling. To analyze the data the researchers have used frequency table and descriptive analysis technique. It was found that, investment selection factors that investors expect to consider, the most important in making an investment decision are; past performance of the stock, Stock brokers’ advice, Company reputation, Company earnings and for quick selling purposes. Further, in making the real investment decision, the highest frequency of the investment selection factors considered are; past performance of the stock, Stock brokers’ advice, advice from others, for quick selling purposes and to get benefits. Sri Lankan investors seem to be under confident, uncertain and are very sensitive to others’ reactions and opinions. The most common determinants that have a significant impact on the investors’ behavior are past performance of the stock, Stock brokers’ advice, advice from others and for quick selling purposes.Item Factors Which Are Affecting To the Behavior of Investors an Empirical Study of the Colombo Stock Exchange(Department of Finance, Faculty of Commerce and Management Studies, University of Kelaniya, 2015) Weerarathne, D.I.Aim of this research is to identify the factors that influences the Sri Lankan’s individual investor behavior. The study attempts to determine principal factors considered important by retail investors in choosing an equity share traded in Colombo Stock Exchange (CSE) and to examine whether there are any significant differences in these factors across demographic characteristics of respondents. To achieve the objectives, this study collected a data from a sample of 50 individual investors in the district of Gampaha through convenience sampling and analyzed them using Descriptive analysis (Mean, Standard deviation and coefficient of variance) and chisquire test for examine whether there is any relationship with independent factors and Demographic factors. The findings of the study reveal that the most important principal factors influencing retail investors are company past performances, Company reputation and Stock broker’s advices. Findings also suggest that amount of importance given to each of the factor significantly differs with at least one demographic characteristics of sample respondents like gender, age, income and education. Company earnings and Information from social media differently affect with age levels. Stock broker’s advices, advice of others are also having varying impact with gender. On the other hand impact of company reputation, risk reduction, affordable share price differ with the educational level.