COMPARATIVE ANALYSIS OF BEHAVIOR OF INSTITUTIONAL AND INDIVIDUAL INVESTORS IN EQUITY MARKETS

V diplomskem delu smo ugotavljali morebitne razlike med vedenji institucionalnih in individualnih investitorjev na različnih borznih trgih po svetu. Borzne trge smo izbrali glede na stopnjo gospodarstva v katerem se država trenutno nahaja. Gospodarstva smo razdelili na že znan način – razvito gospodarstvo, razvijajoče gospodarstvo in tranzicijsko gospodarstvo. Do zdaj je bila večina analiz vedenja investitorjev narejenih na samo enem dotičnem trgu. To diplomsko delo pa je povzetek različnih člankov in analiz ostalih avtorjev. V sklepu diplomskega dela pa smo naredili sintezo vedenja tako institucionalnih kot tudi individualnih investitorjev. S to analizo pa smo poskušali tudi potrditi tezo, da trgi niso učinkoviti in racionalni, temveč da je so trgi neučinkoviti in investitorji neracionalni. S tem pa smo delno potrdili nov tok znanstvene misli, ki je vedno bolj usmerjen k teoriji o vedenjskih financah. Ugotovili smo, da medtem ko se institucionalni investitorji še vedejo racionalno in svoje finančne odločitve sprejemajo na podlagi temeljne analize, se individualni investitorji vedejo ne racionalno in so podvrženi marsikaterem napakam, ki jih opisujemo v teoretičnem delu diplomskega dela. Kljub temu, da pa se institucije v povprečju vedejo racionalno, pa se na trenutke vedejo neracionalno, posledica katerih pa so borzni šoki in zlomi. Delo pa tudi dokazuje, da je odvisno od sestave borznega trga (delež prometa s strani institucionalnih in individualnih investitorjev) kako je sam borzni trg trden. Če je na trgu preveč individualnih investitorjev, bo slej ko prej prišlo do ekscesov, kot pa če na trgu prevladujejo institucionalni investitorji, ki delujejo kot blažilec neracionalnih gibanj cen delnic. Zadnji tak eksces se je zgodil prav na kitajskem borznem trgu, ki pa je v veliki meri dominiran s strani individualnih investitorjev.I the following diploma thesis we have evaluated the behavior of individual and institutional investors on different stock markets. Stock markets have been selected on the development of the economy which they are part of. So we the economies into the usual distribution – developed economy, emerging economy, and transitional economy. Till now, most scientific articles were analyzing the behavior of both types of investors on just one stock market. This diploma thesis is however the cross section analysis, in which we have sum up all relevant articles and then develop our own synthesis about behavior of both types of investors on different stock markets. With this diploma thesis we have tried to confirm the theory of behavioral finance, which states that financial markets are not efficient and investors are not rational. We found out, that while institutional investors do in fact behave rational, and they accept their investment decisions based on fundamental analysis, individual investors behave non rational, and are victims of some behavioral mistakes, that are in depth described in the theoretical part of this diploma thesis. Even though institutions on average do behave as rational investors, they also experience time, when they don’t act completely rational. The result of this is usually stock market crash or complete collapse of stock, and other financial markets. This work proves that the stability of stock market is greatly dependent on the stock market structure (institution’s share and individuals’’ share of total stock market turnover). If the share of individuals is much greater that one of institution’s there is a great danger, that stock market is heading to a crash, since its proven that individuals push the stock price in extreme on both ends of the pricing. The last example is still very present, when the Chinese stock market have crashed. And it is needless to say, that Chinese stock market is greatly dominated by individual investors