Bulathsinhala Arachchige Hirindu Kawshala
Academic and research departments
Faculty of Arts, Business and Social Sciences, Finance and Accounting.About
My research project
Shaping Investor Sentiment: Exploring Alphabetic Bias, Firm Complexity, and Environmental Insights in Earnings Conference CallsMy research delves into the nuanced realms of investor sentiment, mainly focusing on the influence of alphabetic bias, firm complexity, and environmental insights, as presented during earnings conference calls. At the heart of this exploration is the intriguing concept of alphabetic bias - the tendency for investors to respond differently to companies based on alphabetical ordering, an aspect seldom considered yet significant in financial decision-making. I also unravel the intricate layers of firm complexity, investigating how the presentation and perception of the complexity influence investors' understanding and sentiment. By meticulously analyzing these dimensions through a blend of empirical data and theoretical perspectives, my work aims to shed light on the subtle yet powerful forces shaping investor behaviour, offering invaluable insights for investors, corporations, and policy-makers in understanding and navigating the complex dynamics of the financial market.
Supervisors
My research delves into the nuanced realms of investor sentiment, mainly focusing on the influence of alphabetic bias, firm complexity, and environmental insights, as presented during earnings conference calls. At the heart of this exploration is the intriguing concept of alphabetic bias - the tendency for investors to respond differently to companies based on alphabetical ordering, an aspect seldom considered yet significant in financial decision-making. I also unravel the intricate layers of firm complexity, investigating how the presentation and perception of the complexity influence investors' understanding and sentiment. By meticulously analyzing these dimensions through a blend of empirical data and theoretical perspectives, my work aims to shed light on the subtle yet powerful forces shaping investor behaviour, offering invaluable insights for investors, corporations, and policy-makers in understanding and navigating the complex dynamics of the financial market.
ResearchResearch interests
Behavioral Finance
Corporate Communication (Earnings Conference Calls)
Investor Sentiment Analysis
Financial Linguistics
Firm Complexity
Climate Change Exposure
Research interests
Behavioral Finance
Corporate Communication (Earnings Conference Calls)
Investor Sentiment Analysis
Financial Linguistics
Firm Complexity
Climate Change Exposure
Publications
Purpose of the study: Individual investor’s behavior is extensively influenced by biases that are highlighted in the growing discipline of behavioral finance. The present study sought to investigate the influence of socio-economic factors (i.e., investors’ age, gender, education, profession, and income), trading sophistication factors (i.e., trading experience and trading frequency), and self-reflection on herding bias in investment decision-making in Colombo Stock Exchange (CSE). Methodology: The study adopted descriptive and explanatory research designs. It was a census of all 243 individual investors registered with CSE as of September 2020. Sampling was done applying proportionate stratified random sampling technique and data was gathered using self-administered semi-structured questionnaires. The analysis was conducted using means, standard deviations, and regression. Main Findings: The results show that herd behavior is mostly seen among females, having less educational qualifications, who are engaged in the finance field professions, those who are with a very low monthly income, low experience, and who trade less frequently. Self-reflection can be seen in herding bias. On the other hand, age does not impact on herding bias of investors. Applications of this study: This study will be helpful to financial intermediaries to advise their clients. Moreover, the results of the present study facilitate individual investors to realize their herding bias by its’ determinants in the pursuit of making sensible and effective financial decisions. Novelty/Originality of this study: This study gives a unique insight into the investors’ profile corresponding to herding bias under consideration. It not only updates the evidence on herding bias but also highlights which factors are the most influential on herding bias in the Sri Lankan context. With the peculiar scenario in Sri Lanka, this paper contributed to the behavioral finance field as a reference for individual investors and financial advisors.