Preliminary communication

Decision making styles of investors in capital market

Andrijana Mušura Gabor
Anita Knezović

Abstract

The question of investor rationality has been deeply challenged by the development of behavioural finance, which leads to a distortion of certain axioms underlying the 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 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.

Keywords

decision making; framing; investors; behavioural finance

Hrčak ID:

162005

URI

https://hrcak.srce.hr/162005

Publication date:

19.7.2016.

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