An Empirical Study on Investor Perceptions and Behaviors in Equity Investments

This study thoroughly and properly examines the perceptions and behaviors of investors regarding the performance of equity indices in the stock market. By exploring these perceptions, the objective of this research is to provide valuable insights that help investors make informed decisions for financial success. Data was collected from 415 individual equity market investors to understand how their decision-making behaviors–whether rational or irrational–influence their perceptions of stock index movements. The analysis was conducted using the Structural Equation Model (SEM) approach. The findings demonstrate that the model aligns well with the suggested values, highlighting that investors employ both rational and irrational strategies in their decision-making processes. Despite gathering comprehensive financial information, investors often resort to heuristics or shortcuts when making various investment decisions. Specifically, this study underscores the complexity of investor behavior, suggesting that both thorough analysis and intuitive judgment play crucial roles in their investment strategies, thereby contributing to the broader sense of the financial decision-making process in equity markets.