The impact of individual investor’s occupation and investment experience on their decisions to invest

Kristina Levišauskaitė, Jekaterina Kartašova

Abstract


In this paper the results of the research of the Lithuanian individual investors are presented with the purpose to assess whether the degree acquired by them during studies and investment experience could influence their behaviour and investment decision-making in the Lithuanian financial market. The authors attempt to discover the similarities and differences between the behaviour of investors having degree in economics or finance and degrees in other fields, investors having different investment experience and to evaluate the relationship between the occupation and experience of investors and the rationality of their investment decisions. The purpose of the research is to identify the connection between the Lithuanian individual investors’ occupation and experience gained, their behaviour and decisions adopted in the financial market. The results of the research showed that without taking into consideration the reasons of overconfidence, the Lithuanian individual investors, who have acquired the degree in economics or finance are more overconfident in comparison to investors with a different occupation. This group of respondents is also risk-averse. Taking into consideration the other basic findings of the research (different risk perception, major factors influencing investors’ mood, the influence of financial crises, etc.) it is possible to conclude that the degree acquired and the experience gained are important factors, affecting the behaviour and decisions adopted in the Lithuanian capital market.

Keywords


behavioural finance; irrational behaviour; individual investors; investment decision-making; financial markets; degree acquired; experience

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"Business Systems & Economics" ISSN online 2029-8234