Abstract

The study aims to test whether the impact of the investors’ psychological factors on their investment decisions conforms to the prospect theory or not. The used methodologyin is to interview by setting up assumption with different probability but the same expectation mean result. The survey of 422 investors on Vietnam Stock Market shows that the inconsistent psychology (irrational) exists commonly in the market. The investors show the risk-seeking tendency in risky situation and risk-aversion psychology in safe circumstances. The study reconfirms that the investors in Vietnam Stock Market are irrational investors.

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