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Research on the Investment and Financial Management Tendency of College Students from the Perspective of Behavioral Finance

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DOI: 10.23977/ferm.2023.060915 | Downloads: 106 | Views: 621

Author(s)

Yuduo Ma 1

Affiliation(s)

1 The University of New South Wales (UNSW), New South Wales, Sydney, Australia

Corresponding Author

Yuduo Ma

ABSTRACT

The phenomenon of college students engaging in investment and financial management is becoming increasingly common. However, this group lacks a stable source of income, making them susceptible to various irrational factors that can hinder their ability to make independent financial decisions, leading to unpredictable investment risks. This article, from the perspective of behavioral finance theory, utilizes questionnaire surveys and logistic regression models to analyze the process influencing investment and financial management among Chinese college students. The study reveals that in making investment and financial decisions, college students exhibit dual biases at both cognitive and behavioral levels. These biases include representativeness heuristic bias, emotional heuristic bias, mental accounting, loss aversion, and confirmation bias, but the herd effect of blindly following others is relatively weak. The empirical research contributes to our understanding of the formation of psychological biases in market investors and their impact on decision-making within an Eastern cultural context. Furthermore, it offers practical recommendations for college students on how to avoid falling into investment pitfalls.

KEYWORDS

Behavioral Finance, College Students, Investment and Financial Management, Cognitive Bias, Behavioral Bias, Herd Effect

CITE THIS PAPER

Yuduo Ma, Research on the Investment and Financial Management Tendency of College Students from the Perspective of Behavioral Finance. Financial Engineering and Risk Management (2023) Vol. 6: 114-121. DOI: http://dx.doi.org/10.23977/ferm.2023.060915.

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