Self-confidence, Gender, Knowledge and Experience Impact on the Investment Effectiveness on Capital Market
Self-confidence, Gender, Knowledge and Experience Impact on the Investment Effectiveness on Capital Market

Summary/Abstract: Purpose – this article is related to the behavioral factors that may influence investment decisions on capital market and therefore, rates of return. Authors have identifiedfour characteristics that are likely to affect the efficiency of investment: self-confidence,gender, level of knowledge in the area of finance and experience in real investment. Methodology/approach – Authors verify the hypothesis: psychological factors [knowledge,self-confidence, experience and gender] affect the efficiency of stock market investment.The study is based on a behavioral experiment and statistical analysis of theresults. Findings – The results of experiment were divided for three groups related to the level ofrate of return on investment achieved by experiment participants. The results show that inthe lowest range of rates of return they are affected positively by gender and self-confidence.In the case of the mid-range of returns, they are affected by the level of knowledgein a positive way and experience in a negative way. For the highest rates of return, the authors did not identify a significant relationship between examined factors and dependent variables.

• Details
• Contents