Author information:
Gábor Kutasi: Századvég Gazdaságkutató Zrt., former Analyst; Corvinus University of Budapest, Assistant Professor; Magyar Nemzeti Bank, Researcher. (His research activity has been supported by the KÖFOP-2.1.2-VEKOP-15-2016-00001 project). E-mail: gabor.kutasi@uni-corvinus.hu
László György: Századvég Gazdaságkutató Zrt., Senior Economist; Neumann János University, Assistant Professor. E-mail: gyorgy@szazadveg.hu
Krisztina Szabó: Corvinus University of Budapest, Assistant Lecturer and Postgraduate Student. E-mail: krisztina.szabo11@uni-corvinus.hu
Abstract:
It has long been known that the decision-making of money market participants deviates from the pattern outlined by textbook models. This study attempts to explore the real processes taking the approach of behavioural finance, and analyses the hypothetical investment decisions of Hungarian retail government bond investors based on the literature of behavioural finance theses. The analysis relies on the results of a representative opinion poll using behavioural finance theory on the government bond market as a basis. The survey covers the political, emotional and literacy factors underlying the decisions. It examines the herding effect, the influence of demographic factors, and as a new approach, it outlines the profile of Hungarian retail investors. One other novel result of the survey is that it confirms a number of commonly known assumptions about the behaviour of retail investors through collecting data, while reviewing and synthesising behavioural finance literature specifically relevant to the government bond market.
Cite as (APA):
Kutasi, G., György, L., & Szabó, K. (2018). Behavioural Factors in the Hungarian Retail Government Bond Market. Financial and Economic Review, 17(1), 110–136. https://doi.org/10.25201/FER.17.1.110136
Column:
Study
Journal of Economic Literature (JEL) codes:
D91, G11, G41
Keywords:
behavioural finance, government bond, retail investor, non-rational decision-making
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