Global Journal of Economic and Finance Research

The study examines the impact of behavioral psychological factors including rationality, overconfidence, optimism, pessimism and herding effect on investor decisions in the Vietnamese stock market. Using daily data of the VN30 index and its constituent stocks from January 1, 2020 to June 30, 2024, combining two research methods: diffusion index and Wavelet transformation. The results show that behavioral psychological factors and investor decisions in the stock market are highly connected and closely influence each other. Investor decisions are strongly influenced by pessimism and herding effect while rationality, optimism and overconfidence only have a significant impact during the period of rapid market growth, and have no significant impact in other periods. As the market becomes more volatile, the degree of interdependence between psychological factors and investor decisions increases.

behavioral factors, making decisions, stock market, Vietnam investor

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