4th SICB -2016
Permanent URI for this collectionhttp://repository.kln.ac.lk/handle/123456789/15479
Browse
2 results
Search Results
Item Factors Affecting Individual Investment Behavior: A Study of Individual Investors in Colombo Stock Exchange(Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2016) Galhena, N.S.; Weligamage, S.Both conventional finance theories and economic theories have been built on the assumption that investors are to be rational in making decisions. However, with the development of behavioral Finance theories which are based on psychology, attempts have been made to understand how the emotions and biases of human can influence investor behavior. Many studies have been conducted in different capital markets all around the world. However, there are limited studies about individual investor behavior in Sri Lankan capital market. This study expected to fill the gap of determining the factors and their level of influence over individual investor’s decision in Colombo stock exchange (CSE) by testing the factors used in other empirical researches in other countries.Primary objective of the study is to explore the variable that can be influenced on behavior of individual investors in CSE. Furthermore, the level of influence of these variables over the behavior of individual investors in CSE is also studied based on five main factors namely, self-image/firm image, accounting information, neutral information, advocate recommendation and personal financial needs. The study begins with the existing theories and studies in behavioral finance, based on which, the main variables are identified. A structured questionnaire has been used in the study covering all identified variables. Data is collected using convenient and snow ball sampling of 200 individual investors in CSE. Data will be analysed through factors analysis. Findings of this study will be useful for individual investors to make decisions, for fund managers and research firms to provide their recommendations to clients.Item The Study on Herd Behavior in Colombo Stock Exchange(Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2016) Wijesinghe, D.C.; Weligamage, S.Traditional Finance theory presumed that equity market participants take decisions based on rational platforms. However, recent market incidents witnessed that investor’s decision making process is fueled with irrational behaviors like herding. This study attempts to examine the herd behavior among investors in Colombo Stock Exchange (CSE). During the Civil war time period Colombo bourse significantly impaired investors sentiment and gloomy outlook witnessed. Benchmark Index dragged down by 40% which implies that investors’ sentiment largely weigh on uncertain country’s outlook. Cease of war situation in country which resulted in upliftment in the performances of Colombo Stock exchange and bench mark index surpassed key physiological point barriers. Researchers believed that time interval accurately captured the market fluctuations during the Sri Lanka civil war situation. Thestudy further attempts to detect the herding in bull and bear phrases in market. Long term bull run of CSE tandem with positive sentiment over future aspects of country and improving macroeconomic fundamentals. S& P SL 20 Index which was previously known as Milanka is used as a sample of the study. Daily counter returns of the S& P SL 20 index during the period of 2008-2010 has been gathered for analysis. This Study employed two empirical methods named Cross Sectional Absolute Deviation Return (CSAD) and Cross Sectional Standard deviation (CSSD) Method. All share price index is used as the proxy for market returns and S& P SL 20 individual counter returns used as a market portfolio returns assuming that blue chip counters are quickly respondent to the market moving news effect due to their high liquidity.