Investment Patterns and Perceptions of IT Professionals-A Study with Special Reference to Selected IT Firms in Chennai

Abstract

Indian investor today has to endure a sluggish economy, the steep market declines prompted by deteriorating revenues, alarming reports of scandals ranging from illegal corporate accounting practices like that of Satyam to insider trading to make investment decisions. Stock market’s performance is not simply the result of intelligible characteristics but also due to the emotions that are still baffling to the analysts. Despite loads of information bombarding from all directions, it is not the cold calculations of financial wizards, or company’s performance or widely accepted criterion of stock performance but the investor’s irrational emotions like overconfidence, fear, risk aversion, etc., seem to decisively drive and dictate the fortunes of the market. Financial institutions are widely believed to play an increasingly important role in corporate management. A greater role for investors represents a socio-legal-economic movement that came about because of the newly increased concentration of ownership, enforcement of fiduciary responsibility standards, and a set of grievances that united investors bring in.