Predictability of Investment Behavior Based on Personal Characteristics about China’s Individual Investors

Qiujun Lan; qing Xu; Xingye Hu

doi:10.12973/ejmste/78104

Full Text (PDF)

Qiujun Lan ¹ ^* , qing Xu ¹, Xingye Hu ²

More Detail

¹ Business School of Hunan University, Hunan, Changsha, CHINA² Jixiang Life Insurance Company Limited, Hunan, Changsha, CHINA^* Corresponding Author

This article belongs to the special issue "Problems of Application Analysis in Knowledge Management and Science-Mathematics-Education".

Abstract

This paper analyzes the relationship between individual investor’s characteristics and behaviors by rank correlation analysis and logistic regression based on more than 20,000 samples of China’ individual investors nationwide collected through online questionnaires. And we select some critical characteristics as input variables to predict investor’s behaviors. The results show that investors’ personal characteristics and their behaviors are closely linked, and the data mining models inputting an investor’s personal characteristics can predict his investment behaviors effectively. These results would help related financial organizations to optimize their customer management, service quality and cost or profit control.

Keywords

individual investors
personal characteristics
investment behavior
Data Mining

License

This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

Article Type: Research Article

EURASIA J Math Sci Tech Ed, 2017, Volume 13, Issue 12, 8331-8341

https://doi.org/10.12973/ejmste/78104

Publication date: 25 Nov 2017

Article Views: 3105

Article Downloads: 1550

Open Access References How to cite this article

References

Barnea, A., Cronqvist, H., & Siegel, S. (2010). Nature or nurture: What determines investor behavior? Journal of Financial Economics, 98(3), 583-604.a.
Cao, J. (2009). A preliminary study on the development mode of securities brokerage business. Market Weekly (Disquisition Edition), 07, 96-97+72.
Chang, T., & Hui, W. (2016). A Multi Criteria Group Decision-making Model for Teacher Evaluation in Higher Education Based on Cloud Model and Decision Tree. Eurasia Journal of Mathematics, Science & Technology Education, 12(5).
Clark-Murphy, M., & Soutar, G. (2005). Individual investor preferences: a segmentation analysis. The Journal of Behavioral Finance, 6(1), 6-14.
Guo, S. (2013). The speech and answers in the economist’s summit. Retrieved on 2013-01-16 from http:// finance. sina.com.cn/stock/y/20130116/141814304762.shtml (Chinese).
Hira, T. K., & Loibl, C. (2008). Gender differences in investment behavior. New York: Springer.
Huang, M., Zhou, X., & Wang, C. (2014). Are More Professional Customers Less Loyalty? An Empirical Study of Paradox of Customer Expertise of Fund Investors. Nankai Business Review, (1), 105-112. (Chinese).
Kahneman, D., & Tversky, A. (1979). Prospect theory: An analysis of decision under risk. Econometrica: Journal of the Econometric Society, 263-291.
Lan, Q., Ma, C., Wu, J., Gan, G. (2003). Application of Data Mining in Finance Analysis. Management Reviews, 05, 57-62+64. (Chinese).
Li, D., Li, X., & Xiao, B. (2011). Investors experience, reinforcement learning and securities market stability. Social Sciences in Nanjing, 01, 43-48+54. (Chinese).
Li, X., Wang, J., & Fu, H. (2002). The empirical study of individual securities investors’ trade behavior in China. Economic Research Journal, 11(54), 3. (Chinese).
Li, Y., Gao, R., & Du, R. (2010). A research of investors characteristics and portfolio of geopolitical effect. Modern Management Science, 11, 13-15. (Chinese).
Liu, T. (2011). The different information of reference group on impact differences of financial investors behavior——Based on the perspective of the theory of prospect. Southwestern university of finance and economics. (Chinese).
Pei, P., & Zhang, Y. (2005). The empirical test of investors cognitive deviation in China. Management World, (12), 12-22. (Chinese).
Peng, X., & Wang, X. (1995). A study of the Shanghai stock holders’ investing-behaviorand personality traits. Psychological Science, (2), 94-98. (Chinese).
Pompian, M. (2012). Behavioral finance and wealth management: how to build optimal portfolios that account for investor biases. New Jersey: John Wiley & Sons.
Pompian, M. M., & Longo, J. M. (2004). A new paradigm for practical application of behavioral finance: creating investment programs based on personality type and gender to produce better investment outcomes. The Journal of Wealth Management, 7(2), 9-15.
She, G. (2012). An empirical study on the influence factors of family financial asset allocation. Central South University. (Chinese).
Shi, K., Fan, H., & Xu, J. (2006). Research on risk perceptions of Chinese stock investors. Journal of Management Sciences in China, 8(6), 74-82. (Chinese).
Tan, S. (2013). Feedback effect, learning and overconfidence behavior of individual investors in China. Economic Theory and Business Management, 11, 71-79. (Chinese).
Tan, S., & Chen, Y. (2012). Can the investment experience improve the income of the investors? Journal of Financial Research, (5), 164-177. (Chinese).
Tan, S., & Wang, Y. (2006). Do these curities investors excessive trading?——based on the research of data a Chinese securities brokerage house. Economic Research Journal, 41(10), 83-95. (Chinese).
Wang, H., Lin, N., & Wang, X. (2012). The present situation and the development of financial market in China. Modern Economic Information, 20, 6+11. (Chinese).
Wang, L., Zheng, X., & Shi, J. (2003). Chinese securities investors’ investment behavior and personality. Psychological Science, 26(1), 24-27. (Chinese).
Wang, Y. (2016). A Study on Kinmen Resident’s Perception of Tourism Development and Culture Heritage Impact. Eurasia Journal of Mathematics, Science & Technology Education, 12(12).
Wen, F., He, Z., Dai, Z., & Yang, X. (2014). Characteristics of investors’ risk preference for stock markets. Economic Computation & Economic Cybernetics Studies & Research, 3(48), 235-254.
Xu, T., & Chen, L. (2008). An empirical analysis of the individual investors age characteristics and its preference of dividend. Economic Tribune, 18, 106 -108+112. (Chinese).
Yan, B. (2002). An analysis of the investment behavior biases of securities investors in China——a survey for investors in jiangsu. Modern Management Science, 2, 009. (Chinese).
Yang, X., Zhu, J., & Jin, X. (2011). Investment and Happiness: An Empirical Study of Individual Investors in China. Journal of Zhejiang University (Humanities and Social Sciences), 41(2), 42-51. (Chinese).
Zhang, C., Liu, C., & Liao, L. (2012). Applying the logistic model to the rishy asset allocation: An empirical study on the questionnaires of the mutual fund investors. Journal of Tsinghua University (Science and Technology), 08, 1142-1149. (Chinese).

How to cite this article

APA

Lan, Q., Xu, Q., & Hu, X. (2017). Predictability of Investment Behavior Based on Personal Characteristics about China’s Individual Investors. Eurasia Journal of Mathematics, Science and Technology Education, 13(12), 8331-8341. https://doi.org/10.12973/ejmste/78104

Vancouver

Lan Q, Xu Q, Hu X. Predictability of Investment Behavior Based on Personal Characteristics about China’s Individual Investors. EURASIA J Math Sci Tech Ed. 2017;13(12):8331-41. https://doi.org/10.12973/ejmste/78104

AMA

Lan Q, Xu Q, Hu X. Predictability of Investment Behavior Based on Personal Characteristics about China’s Individual Investors. EURASIA J Math Sci Tech Ed. 2017;13(12), 8331-8341. https://doi.org/10.12973/ejmste/78104

Chicago

Lan, Qiujun, qing Xu, and Xingye Hu. "Predictability of Investment Behavior Based on Personal Characteristics about China’s Individual Investors". Eurasia Journal of Mathematics, Science and Technology Education 2017 13 no. 12 (2017): 8331-8341. https://doi.org/10.12973/ejmste/78104

Harvard

Lan, Q., Xu, Q., and Hu, X. (2017). Predictability of Investment Behavior Based on Personal Characteristics about China’s Individual Investors. Eurasia Journal of Mathematics, Science and Technology Education, 13(12), pp. 8331-8341. https://doi.org/10.12973/ejmste/78104

MLA

Lan, Qiujun et al. "Predictability of Investment Behavior Based on Personal Characteristics about China’s Individual Investors". Eurasia Journal of Mathematics, Science and Technology Education, vol. 13, no. 12, 2017, pp. 8331-8341. https://doi.org/10.12973/ejmste/78104