The Psychology Of Wealth: Investor Behavior's Impact On Stock Prices And Volatility
Auteurs : Djabou Salim .
Résumé
This study investigates the impact of stock price volatility on investor behavior in the Amman Stock Exchange (ASE), focusing on quarterly data collected during 2021 and 2022. Utilizing linear regression, time-series analysis, and advanced statistical tools such as Smart PLS4 and Eviews, the research provides a nuanced understanding of how price fluctuations shape investor decisions. The findings highlight notable variations in price volatility over different periods and its differential effects on investor behavior. In efficient markets, investor reactions tend to be rational and grounded in market fundamentals. In contrast, inefficient markets exhibit herding behavior, where emotional and collective decision-making dominate. Furthermore, the study distinguishes between short-term and long-term investment strategies. Short-term investors demonstrate high risk tolerance and speculative tendencies, showing limited sensitivity to price volatility. Conversely, long-term investors, significantly impacted by volatility, exhibit hesitancy in decision-making, often shifting preferences toward stable and secure assets.
Mots clés
investor behavior ; value of executed contracts ; price volatilities ; Amman Stock Exchange
