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Emotional
How do emotional intelligence and intelligence
behavioral biases of investors
determine their
investment decisions? 35
Saloni Raheja Received 23 December 2019
Revised 21 February 2020
Department of Commerce and Business Management, DAV University, Accepted 10 March 2020
Jalandhar, India, and
Babli Dhiman
Mittal School of Business, Lovely Professional University, Phagwara, India

Abstract
Purpose – In earlier studies, research has shown that EI is the only element, which influences the ways in
which people develop in their lives, jobs and social skills control their emotions and get along with other
people. It is EI that dictates the way people deal with one another and understand emotions. The research gap
is to explore the impact of behavioral factors and investors psychology on their investment decision-making.
Design/methodology/approach – The information was gathered from 500 financial specialists. The
region of research was the financial specialists who contribute through LSC Securities Ltd. in Punjab State.
The purposive testing system was used in this examination.
Findings – The investigation found that the positive connection between the conduct predispositions of the
financial specialists and venture choices of the speculators and positive connection between enthusiastic
insight of the financial specialists and their venture choices. Yet, the authors found that the enthusiastic
insight better foresees the venture choices of the financial specialists than the conduct predispositions of the
speculators. Among the different elements of conduct inclinations of the speculator’s lament and carelessness
are identified with the financial specialist’s venture choices. Among the various estimations of eager
understanding – care, dealing with emotions, motivation, empathy and social aptitudes are related to the
hypothesis decisions of the monetary pros.
Research limitations/implications – The sample selection was based on purposive sampling, rather
than a random probability sample. The sample was area specific, restricted only to Ludhiana Stock Exchange
in Punjab state. Therefore, the results of the study cannot be generalized with certainty to all the investors
investing through other exchanges in other states. The inferences are based on the assumption that the data
provided by the investors are true and correct. The findings may be relevant for other stock exchanges as that
of the Ludhiana Stock Exchange. However, the authors do not claim the generalization of the results.
Practical implications – This study also helps to understand the relationship between investment
decision-making and risk tolerance of investors. It will helpful for the financial advisors to know the
behavioral biases of investors while making an investment decision, and therefore, they can advise investors
properly to mitigate such biases. It may help the investors in understanding the subjective part of their
behavior and control their emotions while taking decisions for their investment in stock market options.

© Saloni Raheja and Babli Dhiman. Published in Rajagiri Management Journal. Published by
Emerald Publishing Limited. This article is published under the Creative Commons Attribution (CC Rajagiri Management Journal
BY 4.0) license. Anyone may reproduce, distribute, translate and create derivative works of this Vol. 14 No. 1, 2020
pp. 35-47
article (for both commercial and non-commercial purposes), subject to full attribution to the original Emerald Publishing Limited
publication and authors. The full terms of this license may be seen at http://creativecommons.org/ p-ISSN 0972-9968
e-ISSN 2633-0091
licences/by/4.0/legalcode DOI 10.1108/RAMJ-12-2019-0027
RAMJ Social implications – This research will help investment advisors and finance professionals to judge
investors’ attitudes toward risk in a better way, which leads to better investment decisions.
14,1 Originality/value – This study is my own study and it is original and has not been published anywhere.
Keywords Behavioral biases, Emotional intelligence, Investment decisions, Multiple regression,
Relationship
Paper type Research paper
36
1. Introduction
In the present situation, money has a significant influence on everybody’s life. So as to
maintain a strategic distance from various kinds of issues throughout everyday life, the
individual ought to put the cash in various sorts of roads. The Indian budgetary framework
supports the reserve funds among the financial specialists and channels them to their ideal
and powerful use. In the present aggressive time, the different speculation roads are
accessible to the speculators. Financial specialists when all is said in done have the energy to
put resources into those specific roads, which will deliver the most extreme comes back with
the least dangers. The speculators settle on the venture choices based on the various
variables. The venture choices remember for different speculation procedures, recurrence of
the venture, timeframe, targets of speculation, factors influencing speculation choices and
some more. The conduct predispositions are the most significant factor while settling on
venture choices (Camerer, 1997; Bailey, 2012; Breuer et al., 2014). This segment manages the
presentation of the components of the passionate insight and the elements of the conduct
predispositions of the financial specialists.

1.1 Emotional intelligence

As per Goleman (2006), enthusiastic insight is what helps the financial specialists to settle
on the choices in a superior manner. Enthusiastic intelligence is: “the limit with respect to
perceiving our own sentiments and those in others, for inspiring ourselves, for overseeing
feelings well in ourselves and in our connections.” The passionate knowledge includes:

Self-mindfulness: self-comprehension and capacity to comprehend the feelings.

Handling feelings: know how to quiet yourself.

Motivation: ready to set your own specific goals and work to achieve those
destinations, able to set little walks to achieve immense targets.

Empathy: know how to comprehend the sentiments of others.

Social aptitudes: ready to coincide with others, ready to work excellently in parties
and social occasions.

1.2 Behavioral biases

The investigation of social fund centers on how people make and deal with their monetary
resources. Conduct account infers the mental and sociological components, which influence
the choices of the financial specialists whether an individual, gathering and others.
Conservatism: it suggests that the individuals are not prepared to acknowledge the
progressions and they will set aside more effort to control the changes.
Overconfidence: the financial specialists become presumptuous while foreseeing the
future that they can conjecture the future better.
 Herding: herding is a circumstance when the individual cannot take their very own Emotional
choices and they do what most of the individuals do. intelligence
Regret: a lament hypothesis says that individuals anticipate lament in the event that they
settle on an off-base decision and think about this forecast while taking choices in the future.

2. Review of literature
Kunnanatt (2004) discussed the emotional intelligence. He observed that people with high
emotional intelligence would produce a win-win relationship and people with low emotional
37
intelligence would produce a win-lose relationship. The emotional intelligence training
programs would change both the inside and outside relationships of participants and better
attitudes, clearer perceptions and productive affiliations in life. Avsec et al. (2009) analyzed
the connection between the emotional intelligence of Croatian and Slovenian college
understudies and their identity attributes. The information was gathered from 257 college
understudies and 171 college understudies. The information was dissected by regression,
relationship and two way ANOVA. They reasoned that extraversion trait and
conscientiousness trait were vital indicators and the neuroticism trait was the most
grounded indicator.
Inaishi et al. (2010) considered the arrogant budgetary expert lead in the protection trade
by entertainment. They contemplated that when there was a climb in design then the money
related experts got thoughtless. Landa et al. (2010) got some information about the
relationship among energized information, character properties and mental tendencies in
understudies. They inspected that there was a sure connection between lively thought and
neuroticism and there was a negative relationship of empowered ideas with responsiveness
and opportunity. The invigorated clearness was adversely related to neuroticism and was
related to extraversion. Ezadinea et al. (2011) researched the impact of EI and its
measurements on portfolio execution. The information was gathered from 122 Iranian
shareholders. The information was broke down with the assistance of regression. They had
also used t-tests for analysis. They inferred that there was a beneficial outcome EI on
portfolio execution. They found that portfolio execution and return was influenced by the
experience of the speculators. Masomi and Ghayekhloo (2011) isolated the impact of the
social factors on the wander decisions of the budgetary supervisors. They found that regret
was one of the standard variables, which impact the speculation decisions of the examiners.
Garkaz and Mehrvarzi (2012) isolated the connection between eager learning and execution
of business firms in the Tehran Stock Exchange. There was a connection between self-
affiliation and execution, yet, there was no connection between social consideration and
execution. Nawi et al. (2012) picked the connection between fiery information and character
trait among school pioneers in high performance schools in Malaysia. They found that
legitimacy, responsiveness to comprehension, extraversion and fittingness were
emphatically related to energetic learning of the school’s teacher pioneers. The
extraordinary certainty had more grounded association with vivacious learning than the

Behavioral Biases
(Overconfidence, Conservatism,
Herding and Regret)
Investment
Figure 1.
Decisions Theoretical
Emotional Intelligence
(Self Awareness, Handling framework of the
Emotions, Motivation, Empathy and
Social Skills) study
RAMJ other character characteristics. Ramanujam and Ramkumar (2012) determined the attitude
14,1 toward risk and personality traits of women in the stock market. The collection of data was
done from 360 investors. The t-test, factor analysis and percentages were used in the study.
Zaidi and Tauni (2012) perceived the association between personality traits, demographics
and overconfidence bias of monetary experts in the Lahore Stock Exchange. The data was
accumulated from 170 respondents and was destitute somewhere around chi-square ( x 2)
38 and relationship. They gathered that there was a certain association between pomposity
inclination and extroversion and an indirect association between overconfidence tendency
and neuroticism. Bashir et al. (2013) investigated the effect of economics components and
character qualities on the direct tendencies and danger taking behavior in Pakistan. The
data was accumulated from 225 lenders and cash understudies. The data was dismembered
by SEM. They assumed that character characteristics had basic association beside mien
sway with pretentiousness, gathering behavior and risk taking. The measurement factors
had no association with direct tendencies. Sami and Rizvi (2013) found that lively learning
was exceptionally related to life satisfaction and character attributes had an inverse
association with life satisfaction. They furthermore watched that the markers of life
satisfaction intra-specific thought and neuroticism were in the made individuals. Pervez
(2014) found that the lively understanding attributes of the cash related specialists are
related to experience choices of the scholars. Pirayesh (2014) assessed the effect of
stimulating information on theoretical frameworks of retail money related specialists in the
Tehran Stock Exchange. He construed that there was a positive connection between
stimulated learning and hypothesis decisions. He found that there was certain and
connection between chance hesitant and estimations of stimulating information. Rzeszutek
et al. (2015) they found that not simply that unremitting retail researchers were unprotected
against various lead slants while picking decisions yet also that the level of lack of
protection was more grounded in this get-together than among the people who were
basically delicately connected with contributing. Alquraan et al. (2016) analyzed the
association between the hypothesis decisions and the lead factors. They found that the
egotism had a basic association with the hypothesis decisions of the monetary experts and
there was no association between the swarming conduct and the endeavor decisions of the
examiners. Chavali and Mohanraj (2016) inspected the association between danger
obstruction and theory decisions and found that the examiners lean toward sure increment
instead of an uncertain future. Tanvir et al. (2016) contemplated the connection between
vivacious appreciation and theory decisions. They found that there was an extraordinary
effect of care, self affiliation, sympathy yet low obsession with relationship affiliation.
Sashikala and Chitramani (2017) focused on identifying the constructs necessary to identify
the EI of investors through an extensive review stating the role that emotional intelligence
plays in the investment behavior of the investor. Muttath and Menachery (2018) analyzed
the similarities or differences among high and low emotional intelligence and investment
decisions. Zahera and Bansal (2018) studied the behavioral patterns of individual investors,
institutional investors and financial advisors. Choudhary and Subramanian (2019) found
that risk tolerance had a strong resemblance to the investment decision. Raheja and Dhiman
(2019) focused on the relationship between the behavioral biases and risk tolerance of the
investors and the relationship between the behavioral biases and the investment decisions of
the investors.
From the above discussion, we endeavor to comprehend the relation between investment
decisions and the emotional intelligence of the investors. We can say that people take
different investment decisions depending on their emotional intelligence and their
behavioral biases. Some emotional intelligence dimensions have direct relation and some
have an indirect relation with the investment decisions. There is a relation between Emotional
behavioral biases and investment decisions of investors also. Some dimensions of intelligence
behavioral biases have direct relation and some have an indirect relation with the
investment decisions of the investors.

3. Objectives of the study

To study the relation between the dimensions of emotional intelligence and 39
investment decisions; and

To study the relation between the dimensions of behavioral biases and investment
decisions.

On the basis of the above objectives, the following hypotheses have been framed and are
tested:

H0. There is no relation between emotional intelligence and investment decisions of

investors.
H1. There is relation between emotional intelligence and investment decisions of
investors.
H0. There is no relation between behavioral biases and investment decisions of
investors.
H2. There is relation between behavioral biases and investment decisions of investors.
In this study, the behavioral biases and emotional intelligence are the independent variables
and the investment decisions of the investors are the dependent variable. The dimensions of
behavioral biases are coded as overconfidence X11, conservatism X12, herding X13 and regret
X14 and the dimensions of emotional intelligence are coded as self awareness X21, handling
emotions X22, motivation X23, empathy X24 and social skills X25.

4. Research methodology
Test size: the information was gathered from 500 financial specialists.
Inspecting area: the region of research was the financial specialists who contribute
through LSC Securities Ltd. in Punjab State.
Inspecting technique: the purposive testing system was used in this examination. It is a
non-likelihood testing system, which depends on the highlights of a populace and the target
of the examination. The purposive testing strategy is otherwise called critical examining or
particular inspecting or abstract inspecting. It is additionally founded on the assessment of
the master.
Poll: the institutionalized survey has been used to gather information from financial
specialists. The enthusiastic insight scale, conduct predispositions scale and the venture
choices scale have been used in the investigation.
The standardized scale for emotional intelligence (Goleman, 2001), which is a reliable and
validated 50-item, five-point Likert scale that measures the components of emotional
intelligence, empathy, self-awareness, motivation, managing emotions and social skills.
The standardized scale for behavioral biases scale was taken from Chin (2012), which is a
reliable and validated 24-item, five-point Likert scale that measures the behavioral aspects
of the individuals i.e. overconfidence, regret, herding behavior and conservatism.
RAMJ The standardized scale for investment decisions were also taken from which is a reliable
14,1 and validated 35-item, five-point Likert scale (Hameed, 2012).
Wellsprings of information: for this examination, the essential information was gathered
from financial specialists with the assistance of institutionalized surveys from the
speculators of securities exchange and optional information was gathered from diaries,
books and sites and from the audit of writing.
40 Pilot study: a pilot study had been done on 50 investors to test the reliability and the
Cronbach’s alpha (a) was 0.857, which is more than 0.6. It shows that the data was reliable.

5. Analysis
This section represents the relationship among the investors’ emotional intelligence,
behavioral biases and investment decisions. This section is divided into three parts – first
part describes the relation between the dimensions of the behavioral biases and the
investment decisions of the investors; the second part describes the relation between the
dimensions of the emotional intelligence and the investment decisions of the investors; and
third part describes the overall relation among the behavioral biases, emotional intelligence
and the investment decisions of the investors. Multiple regression techniques were applied
to test the relationship between these variables.

5.1 Relation between behavioral biases and investment decisions of investors

This section deals with the relation between the dimensions of the behavioral biases and the
investment decisions of the investors. On the basis of this, the following hypotheses are
framed:

H0. There is no relation between overconfidence and investment decisions of investors.

H1a. There is relation between overconfidence and investment decisions of investors.
H0. There is no relation between conservatism and investment decisions of investors.
H1b. There is relation between conservatism and investment decisions of investors.
H0. There is no relation between herding and investment decisions of investors.
H1c. There is relation between herding and investment decisions of investors.
H0. There is no relation between regret and investment decisions of investors.
H1d. There is relation between regret and investment decisions of investors.
Table 1 shows that the fitted model is quantifiably vital at p < 0.05. The model decides an
estimated level at 0.615 or 61.5%. It shows that there is a connection between the conduct
inclinations and the venture choices of the financial specialists. It shows that how precisely a

Intercept = 1.004, R = 0.615, R2 = 0.379 and F = 74.571

Independent variable Dependent variable (investment decisions)
(behavioral biases) b t Sig.
Table 1. Overconfidence X11 0.385 11.578 0.000
Coefficients from Conservatism X12 0.024 1.202 0.230
multiple regression Herding X13 0.001 0.068 0.946
model Regret X14 0.218 8.466 0.000
model of relapse will anticipate the future results. The R2 chooses 0.379 or 37.9% explains Emotional
the variability of the speculation choices. The assessment used ANOVA to become familiar intelligence
with the significance of the model in Table 1. The table shows that the factors are critical at
F (5, 494) = 75.471, p < 0.05, which shows that the model is a solid match for the information.
In this manner, it shows that for the t-test the factors X11 and X14 at 0.05 level are critical.
As the sig esteem for arrogance predisposition and lament inclination is under 0.05.
In this manner, the theories H1b and H1c are not acknowledged and H1a and H1d are
acknowledged. It implies that there is a connection between arrogance predisposition and 41
investment choices of financial specialists. There is a connection between the lament
predisposition and the speculation choices of the speculators. There is no connection
between conservatism inclination and investment choices of financial specialists. There is
no connection between the crowding predisposition and the speculation choices of the
financial specialists.
The intercept of the relapse condition is 1.428. The beta ( b ) coefficients of the factors,
which are huge – 0.385(X11) and 0.218(X14).
Among every one of the components of conduct predispositions, the most elevated
estimation of coefficients is for variable X11 (overconfidence), which shows that pomposity
is the most significant indicator of investment choices. There is a connection between the
pomposity inclination and investment choices of the financial specialists. When there is a
one-point increment in carelessness inclination it will prompt positive difference in 0.385
focuses on investment choices of financial specialists. The financial specialists at some point
may become careless about their very own speculation choices. They believe that they can
anticipate the future superior to the others, they become careless about their choices. They
believe that they can take their speculation choices and it will consistently be correct. The
outcomes are connected with the past writing of Norsinger (2002).
There is a critical connection between lament inclination and speculation choices of
financial specialists. When there is a one-point increment in lament inclination there will be
a positive difference in 0.218 focuses on venture choices of financial specialists. The
financial specialists who consider their past experience put more and put safely in securities
exchange and go out on a limb. Everybody will have the experience of feeling mourn for the
span of the standard day by day presence and it is common. The cash related experts feel
regret when they purchase at a significant expense and offer easily. They will in general
hold the stocks excessively long until the point that the minute that the expense achieves
lower than the getting cost. This is reliable with the discoveries of Shefrin (2009). There is no
noteworthy connection between conservatism and speculation choices. There is no
noteworthy connection between crowding and venture choices. The outcomes additionally
gain support from the earlier discoveries Chin (2012). It shows that a few financial
specialists do not pursue the activities of the others so as to put resources into securities
exchange. They take their very own choices while putting resources into securities
exchange. It shows that a few people do not avoid changes when they put resources into
securities exchange. They change their choices as indicated by the new data and new
innovation emerges. They do not adhere to the old ones.

5.2 Relation between emotional intelligence and investment decisions of investors

This section deals with the relation between the dimensions of emotional intelligence and
the investment decisions of the investors. On the basis of this, the following hypotheses are
framed:

H0. There is no relation between self awareness and investment decisions of investors.
RAMJ H2a. There is relation between self awareness and investment decisions of investors.
14,1 H0. There is no relation between handling emotions and investment decisions of
investors.

H2b. There is relation between handling emotions and investment decisions of

42 investors.

H0. There is no relation between motivation and investment decisions of investors.

H2c. There is relation between motivation and investment decisions of investors.
H0. There is no relation between empathy and investment decisions of investors.
H2d. There is relation between empathy and investment decisions of investors.
H0. There is no relation between social skills and investment decisions of investors.
H2e. There is relation between social skills and investment decisions of investors.
Table 2 demonstrates that the model is fit and is factually critical at p < 0.05. The model
infers an expectation level at 0.664 or 66.4% for each penny. It demonstrates that there is a
connection between the passionate knowledge and the venture choices of the financial
specialists. The R2 esteem decides 0.441 or 44.1% for every penny clarifies the changeability
of the investment decisions.
The ANOVA decides the hugeness of the relapse demonstrates in Table 2. The table
uncovers that the factors are critical at F (5, 494) = 77.959, p < 0.05, which demonstrates that
the model is fit for the information.
It shows in Table 2 that the t-test is significant for all the variables X21, X22, X23, X24 and
X25 at 0.05 level. Thus, the hypotheses H2a, H2b, H2c, H2d and H2e are accepted. It means
that there is a relation between all the dimensions of emotional intelligence that is self
awareness, handling emotions, motivation, empathy, social skills and investment decisions
of the investors. The intercept of the regression equation is 0.843. The b coefficients of the
variables, which are significant are 0.228(X21), 0.077(X22), 0.285(X 23), 0.088(X 24) and 0.165
(X 25).
In this manner from the table, we discovered that among every one of the elements of the
enthusiastic insight, the most noteworthy estimation of the coefficient is for motivation,
which shows that inspiration is the most significant indicator of investment choices of the
speculators. There is a noteworthy connection between mindfulness and investment choices
of the financial specialists. When there is one point increment in mindfulness there will be a
positive difference in 0.228 focuses on investment choices of speculators. It shows that when

Intercept = 0.843, R = 0.664, R2 = 0.441 and F = 77.959

Independent variable Dependent variable (investment decisions)
(emotional intelligence) b t Sig.

Self awareness (X21) 0.228 6.180 0.000

Table 2. Handling emotions (X22) 0.077 2.584 0.010
Coefficients from Motivation (X23) 0.285 6.110 0.000
multiple regression Empathy (X24) 0.088 2.301 0.022
model Social skills (X25) 0.165 4.343 0.000
the financial specialists know their own feelings and their impact of feelings on the venture Emotional
choices then he will contribute appropriately. There is a huge connection between taking intelligence
care of feelings and investment choices of financial specialists. When there is a one-point
increment in dealing with feelings it will bring a positive difference in 0.077 focuses on
investment choices of financial specialists. At the point when the financial specialists know
how to remain positive under tension put more in securities exchange. When there is one
point increment in the inspiration it will get a positive difference in 0.285 focuses on 43
investment choices of speculators. There is a connection between inspiration and investment
choices. The examiners who do attempt to achieve their pined for goals put more in
protections trade. The financial specialists who are submitted and are constantly started
toward their work put more in the securities exchange. There is a critical connection
between sympathy and investment choices. When there is a one-point increment in
sympathy it will get a negative difference in 0.088 focuses on the investment choices of
financial specialists. At the point when the speculators comprehend the other’s see the point
then they put less in a financial exchange. There is a huge connection between social
aptitudes and investment choices. When there is a one-point increment in social abilities it
will bring a negative difference in 0.165 focuses on the investment choices of speculators. It
shows that when an individual has social aptitudes, they put more in the financial exchange.
As a financial specialist become increasingly charming and dependable, they attempt to
comprehend the general public and put more in the securities exchange.

5.3 Overall relationship among emotional intelligence, behavioral biases and investment
decisions of the investors
This part deals with the overall relationship among the behavioral biases, emotional
intelligence and the investment decisions of the investors. After testing the relation between
the different dimensions of the behavioral and investment decisions and the different
dimensions of the emotional intelligence and the investment decisions of the investors, the
overall relationship among the behavioral biases, emotional intelligence and the investment
decisions of the investors has been studied. On the basis of this, the following hypotheses
are framed:

H0. There is no relation between emotional intelligence and investment decisions of

investors.
H1. There is relation between emotional intelligence and investment decisions of
investors.
H0. There is no relation between behavioral biases and investment decisions of
investors.
H2. There is relation between behavioral biases and investment decisions of investors.
Table 3 demonstrates that the fitted model is factually critical at p < 0.05. The outcome from
the numerous relapse investigation demonstrates that the model determines an expectation
level at 0.661 or 66.1%. The R2 esteem decides 0.437 or 43.7% for each penny clarifies the
inconstancy of the reliant variable. It demonstrates how precisely a model of relapse will
foresee the future results. The most astounding estimation of emotional knowledge shows
that enthusiastic insight predicts the venture choices superior to behavioral predispositions.
At the point when there is a one-point increment in enthusiastic knowledge, it will bring a
positive difference in 0.579 focuses on the venture choices of the speculators. When there is a
RAMJ one-point increase in behavioral biases it will bring a positive change of 0.212 points in the
14,1 investment decisions of the investors (Table 3).
Therefore, there is a significant relationship between emotional intelligence, behavioral
biases and the investment decisions of the investors. The investors who score high on
emotional intelligence invest more in the stock market. Behavioral biases also predict the
investment decisions of investors.
44
6. Findings and suggestions
The investigation found that the positive connection between the conduct predispositions of
the financial specialists and venture choices of the speculators and positive connection
between enthusiastic insight of the financial specialists and their venture choices. Yet, we
found that the enthusiastic insight better foresees the venture choices of the financial
specialists than the conduct predispositions of the speculators. Among the different
elements of conduct inclinations of the speculator’s lament and carelessness are identified
with the financial specialist’s venture choices. Among the various estimations of eager
understanding – care, dealing with emotions, motivation, empathy and social aptitudes are
related to the hypothesis decisions of the monetary pros. The examination shows that out of
these two passionate insights and social predispositions of the speculators, enthusiastic
knowledge impact venture choices of the financial specialists more than the conduct
inclinations of the financial specialists. The financial specialists who consider their past
experience put more and put safely in securities exchange and go out on a limb. Everyone
will have the experience of feeling mourn for the duration of regular daily existence and it is
common. The money related pros feel regret when they buy at a significant expense and
offer to require little to no effort. They will in general hold the stocks excessively long until
the moment that the expense accomplishes lower than the buying cost. The theorists who
reliably do attempts toward the pined for targets or vanquishing negative sentiments put
more in protections trade. The speculators who are submitted and are constantly started
toward their work put more in the securities exchange. The theorists should have been full
data of the endeavor streets. In this way, the associations should give complete
consideration to the money related pros, which help them to pick the right theory at the
perfect time. The hypothesis associations ought to deal with the theorists according to their
social inclinations and the energetic understanding property while placing assets into
protections trade. The individual money related master should not take after the theorists
who consider their past experience or who contribute basically in light of the fact that other
budgetary experts put assets into that particular street. Thus, the associations need to base
on the individual examiner for getting the whole market. The reserve associations should
design the endeavor streets according to the conduct inclinations and the enthusiastic
information on the monetary authorities. The associations must offer some motivator added
organizations to examiners. The financial specialists must not pursue most of the
individuals. He ought to know about his ventures while putting resources into any stock.
The financial specialists ought not to put resources into stock on the guidance of the others.

Intercept = 0.408, R = 0.661, R2 = 0.437 and F = 192.831

Dependent variable (investment decisions)
Table 3.
Independent variables b t Sig.
Coefficients from
multiple regression Behavioral biases 0.212 5.404 0.000
model Emotional intelligence 0.579 14.226 0.000
The financial specialist ought not to put together their venture depending on respect to the Emotional
exhibition of the stock previously. The money related counsels should concentrate on the intelligence
arrogance and lament conduct predispositions of speculators while settling on venture
choices with the goal that they can guide them precisely so as to reduce such sort of
inclinations. Speculators ought to show restraint when taking venture choices. Financial
specialists ought to painstakingly recognize and examine the social element, which
influences the venture choices of the speculators. The financial specialist needs to build their
insight with respect to social accounts. The speculators of all age bunches must have
45
information with respect to the venture, so they can choose the best speculation road in like
manner. The organizations ought to give data to the financial specialists with respect to the
advantages of making interest in securities exchange.

7. Conclusion
The financial specialists decide their venture choices as per their behavioral predispositions
and enthusiastic knowledge. The financial specialists with various enthusiastic knowledge
put resources into various roads. The organizations ought to consider the distinctive
behavioral inclinations and enthusiastic knowledge of the speculators keeping in mind the
end goal to give them the best venture avenues. Thus, the companies should give the best
advice to their clients on the basis of the different factors affecting the investment decisions
of the investors.

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Further reading
Chou, S., Huang, G. and Hsu, H. (2010), “Investors attitudes and behavior towards inherent risk and potential
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empirical analysis with respect to investors in Udaipur, Rajasthan”, Journal of Arts, Science and
Commerce, Vol. 2 No. 2, pp. 78-88.
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Nigerian banking industry”, Journal of Management, Marketing and Logistics, Vol. 1 No. 4,
pp. 348-374.
Wang, A. (2009), “Interplay of investors financial knowledge and risk taking”, The Journal of
Behavioral Finance, Vol. 10 No. 4, pp. 204-213.
About the authors Emotional
Dr Saloni Raheja is an Assistant Professor in the Department of Commerce and Business intelligence
Management (CBM), DAV University, Jalandhar. She has completed her PhD from Lovely
Professional University, Phagwara. Her research is focused on the area of behavioral finance,
investment decisions, accounting and management and the stock market. She has presented papers
in various national and international conferences and has published different research papers in the
journals of national and international repute (including SCOPUS indexed, Thomson Reuters’ and
SAGE journals). She has an experience of more than six years in academics and research. She has 47
also done an Advance Diploma in Insurance and Risk Management. She has attended various FDP
programs and organized different workshops. Saloni Raheja is the corresponding author and can be
contacted at: saloni.rahejaa@gmail.com
Dr Babli Dhiman is presently working as Professor and Head Finance Department in the Mittal
School of Business. She is a member of editorial and review boards of various reputed journals. She
has an exposure of 20þ years of working in academics, holding international finance conferences, the
funded research project of ICSSR, editor for SCOPUS index journal. She is handling administration
and curriculum development for finance related areas. She has also supervised 20þ students for
MPhil and PhD. She has 75þ research papers published and presented in various reputed journals,
seminars and conferences.

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