Abstract
M.Com. (Financial Management)
This study aims to determine whether South African do-it-yourself listed share investors consider selected strategic investment decision-making criteria in their investment processes. It also aims to determine whether South African do-it-yourself listed share investors’ decision-making is affected by selected behavioural bias.
A quantitative research approach was adopted, and an electronic questionnaire was emailed to a convenience sample consisting of individuals who are employed at three financial institutions within the Gauteng region. The demographic profile of the convenience sample was found to be similar to those of previous studies and therefore provided a sound base for comparison and analysis.
These results indicated that do-it-yourself listed share investors are in fact considering the selected strategic decision-making criteria across the investment process. On assessment of the investor’s behaviour against the selected biases which are commonly associated with listed share investors, it was determined that the respondents, in general, believe that their decision-making is mostly not affected.
This study informs the potential do-it-yourself listed share investor of the decision-making criteria considered by current investors, as well as potential behavioural biases that could adversely affect their investment decision-making process. This study highlights the importance and need for additional education and mentorship programmes. This study is also of benefit to the South African stock broking community who are looking for insight into the decision-making process and ways in which to increase their respective market shares.