Template-Type: ReDIF-Article 1.0

Author-Name: Gábor Kutasi
Author-Workplace-Name: Corvinus University of Budapest
Author-Email: gabor.kutasi@uni-corvinus.hu

Author-Name: László György
Author-Workplace-Name: Századvég Gazdaságkutató Zrt.
Author-Email: gyorgy@szazadveg.hu

Author-Name: Krisztina Szabó
Author-Workplace-Name: Corvinus University of Budapest
Author-Email: krisztina.szabo11@uni-corvinus.hu

Title: Behavioural Factors in the Hungarian Retail Government Bond Market

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.

Classification-JEL: D91, G11, G41
Keywords: behavioural finance, government bond, retail investor, non-rational decision-making
Pages: 110-136
Volume: 17
Issue: 1
Year: 2018
File-URL: http://english.hitelintezetiszemle.hu/letoltes/fer-17-1-st5-kutasi-gyorgy-szabo.pdf
File-Format: Application/pdf
Handle: RePEc:mnb:finrev:v:17:y:2018:i:1:p:110-136