The stock market is a leading indicator that shows the economy’s future growth or recession. Over the years, Taiwan’s stock market has gone through many times financial crises, including the “Subprime Mortgage” crisis in 2007. Estimating effects of the Lehman Brothers going bankrupt is not easy even today, not to mention try cleaning the mess up. As Taiwan’s financial market is gradually opening up and falling in line with the world, it is more vulnerable, and the crises caused Taiwan’s stock index to plummet over 5000 points in a few months; the stock index is currently at a level above 6000 points. Left with little wealth, individual investors were pressured to liquidate stocks, aggravate the situation even more. In order to make a profit in the capital market, investors must know which factors influence on their investment performance.
The purpose of this study is to explore the influence of investment behavior and the factors of decision making on investment performance. Research subjects are randomly sampled investors from Taiwan’s stock market; the frequency distribution table of descriptive statistics and one-way ANOVA were used to examine background variables of investors and whether they reached the significant level in investment behavior and decision making. Pearson product-moment correlation was used to analyze whether variables were significantly related, including the relation among investment behavior, the factors of decision making and investment performance variables. Optimal scaling regression analysis was adopted to examine anticipations of investment performance based on different investment behavior and the factors of decision making , it was also used to explain the relation between different variables.
Research findings are as follows: (1) In investor’s background variables of financial condition, the independent variable reached level of significance in market selection. (2) In investor’s background independent variables, age, education, position, income, average investment amount per quarter and financial condition reached level of significance in decision making. (3) In investor’s background variables, the independent variables age, average investment amount per quarter and financial condition reached the significance level in the mental aspect. (4) In investor’s background variables, the independent variables average investment amount per quarter and financial condition reached level of significance in macro economics. (5) In investor’s investment behavior, the independent variable strategy selection reached level of significance. Therefore, among all investment behavior and decision making variables, maintaining cash position and setting strict stop loss points are the key to making a profit in a bear market.