Determinants of Emotional Stability and Psychological Well Being in Investors During Stock Market Fluctuations

22 Pages Posted: 20 Dec 2018

See all articles by Tarika Singh

Tarika Singh

PIMG

Monika Gupta

Prestige Institute of Management

Archana Kaushal

Independent

Anubhav Tripathi

Independent

Date Written: December 13, 2018

Abstract

Purpose: The purpose of this paper is to explore and confirm the determinants of Emotional Stability and Psychological Well Being in investors during stock market fluctuations. Using self-designed questionnaires and establishing their reliability and validity, EFA and CFA were applied for finding determinants of the variables.

Design/methodology/approach: The authors have presented a brief introduction about the topic explaining further the factors which contribute towards the emotional stability and psychological wellbeing in investors, has explained stock market fluctuations, the relationship between the two variables, research procedure used, a survey carried out and further the analysis of the responses from the survey. In the latter part of the research, implications for finance researchers and practitioners are discussed.

Findings: The paper identifies the determinants of emotional stability and psychological wellbeing in investors during stock market fluctuations. Later these determinants are confirmed using confirmatory factor analysis.

Originality/value: The author has synthesized the inputs made by previous behavioral finance studies in extending the knowledge of emotions, psychological wellbeing and investor behavior of the society. The paper shows that policymakers and financial companies should focus more on these factors while making any kind of promotional campaign. This research study will help the investors to know about the price fluctuations so that; they can take the right decision at the right time when they have to invest in the stock market. These emotional swings are widely used by financial practitioners to educate their clients about successful investments.

Keywords: Social Analytics, Social Aspects, Decision making, Psychology, Behavioral finance, Emotions, Emotional Stability

Suggested Citation

Singh, Tarika and Gupta, Monika and Kaushal, Archana and Tripathi, Anubhav, Determinants of Emotional Stability and Psychological Well Being in Investors During Stock Market Fluctuations (December 13, 2018). Proceedings of 10th International Conference on Digital Strategies for Organizational Success, Available at SSRN: https://ssrn.com/abstract=3300673 or http://dx.doi.org/10.2139/ssrn.3300673

Tarika Singh (Contact Author)

PIMG ( email )

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Nagar
Gwalior, MP 474 020
India

Monika Gupta

Prestige Institute of Management ( email )

Airport Road, Opposite Deendayal
Nagar
Gwalior, MP 474 020
India

Archana Kaushal

Independent ( email )

Anubhav Tripathi

Independent ( email )

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