the topic will be in the area of behavioural finance

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1. Research Project Title
This is the working / draft title for the project.
To analyse the impact of investor sentiment and uncertainties on the development of
anomalies and its impact on investment decision making of investors.
2. Research Project Summary
Provide a brief overview of the project, similar to an abstract, or executive summary.
In the research proposal presented below, the research that will be conducted in order to
achieve the intended aim of analysis of the impact that personal sentiments and uncertainties
has on the investment and decision making of the investors studying the field of behavioural
finance. In the current proposal, a research problem has been formulated based on which
literature review has been conducted. Further this research proposal also includes formulation
of research aims and research questions that are to be addressed in the intended research
followed by identification of the theoretical frameworks that will be used in the research
(Blajer-Gołębiewska, Wach and Kos, 2018). This is followed by research methodology which
details the various tools and techniques that will be used by researcher to conduct his research
and this is followed by justifying the significance of conducting this research and its
importance i.e. contribution. Lastly, a timeline related to the conducting of entire research will
be presented in the research proposal.
of Business
HDR RESEARCH PROPOSAL TEMPLATEInstructions:
1. Writing a research proposal is a requirement for application to Higher Degree Research at QUT.
2. This template may be used as a suggested format for your Research Proposal for Application. You do not
have to use this template, however it is recommended that you structure your research proposal
according to the following sections and headings.
3. It is recommended that you prepare your Research Proposal electronically using a clear and legible font
size and adhere to the word / page limit indicated.
4. Overall word limit: No set word limit, however 5 to 6 pages is recommended.

3. Research Problem
Using references to existing research, identify the current research problem or challenge that is
the intended focus of your proposed research.
In this research proposal, the main problem that scholar will address is how different
sentiments and the uncertainties of the investors and financers impact their decision
making. The different aspects of the rising anomalies due to these sentiments and
uncertainty of an investor will be observed and how their decision making gets impacted
due to such anomalies’ influences will be discussed in this research proposal. What are the
possible solutions to meet such influences will be further addressed in this report. The
problems to be addressed are:
Research Objectives:
 To understand the concept of investor sentiment.
 To identify impact of uncertainties on anomalies occurring during investment
decision making.
 To assess the anomalies arising in decision making due to investor sentiment and
uncertainty.
 To recommend appropriate strategies for reduction of anomalies during the
decision making process.
4. Project (research topic) details
Provide a brief statement under each of the headings below.
1.1. Literature Review
Provide a brief review of the literature for the area of research interest. This sets the scene and
context for the research topic. It should define the problem, its causes, its extent and its
significance. Ensure the literature review is grounded in the academic literature and includes
citations.
Literature review helps a researcher In identifying and analysing the past research that has
been conducted and formulating the best approach in conducting his research which will
further add on in the field.
Theme 1: Influence of sentiments and uncertainties on investment decisions.
As per the view point of Kaur and Kaushik (2016), sentiments as well as uncertainties is
statistically of extreme importance. The need and achievement of certain objectives were the
key points that influenced the preference i.e. sentiments of investors. Further the risk taking
capability of the investor mainly influences the decision making i.e. the degree of risk that an
investor is ready to take while making investment decisions. The uncertainness of the society

and the resources available within a family are additional factors that further impact the
decision-making. Based on the economic differences of various countries, there is additional
differentiation in the manner investors belonging to different countries invest.
However, Gupta, Mahakud and Debata (2018), contradicts that uncertainty and sentiment
although are contributors in the decision making but they do not act as major contributors.
Factors like investment strategies, objective of investment, time period, returns generated and
frequency of investment are some of the key anomalies that are occurring in the investment
making investment decisions. The security of the investment that is being made additionally
impacts the decision making rather that uncertainties’ or sentiment’s impact on the investment
decision making. The author further states that uncertainty aspect leads clouding of the
judgement and rationality of the decision making power of the investor making him take
decisions that might not give maximum profitability.
Theme 2: Advantages and disadvantages of the anomalies in decision making.
Lucke and Eichler (2016), states that sentimental aspect as well as uncertainties and caution
have a very positive influence on the decision making regarding investment. The profile of the
investor and his risk taking ability helps in determining the investment tendency and take those
decisions that will give them maximum returns. These factors collectively categorized under
behavioural finance helps the investors in identifying which categories of investment will suit
their lifestyle and give them returns accordingly rather than taking economic factors only into
consideration. It also helps in recognizing the sentimental values or habit so that
implementation of the decisions taken can help in achieving the intended investment
objectives.
Another author Frino, Lepone and Wright (2015), argues that investment decisions based on
these aspects are often irrational and does not give maximum yield or return to the investors.
This leads to anomalies like biasness in the decision making involving various factors of
anomalies like overconfidence, ambiguity, lack of adequate knowledge etc. that impacts the
decision taken by the investors negatively because they tend to overestimate or underestimate
an investment decision based on their sentiment rather than adopting a rational and justified
approach. Further, unccertainties also purports many disadvantages like constriction of better
investment avenues, unavailability of all the investment options etc.
Theme 3: Strategies for overcoming drawbacks of such sentiment and uncertainties’ impacts
on investment decisions.
According to Ang, Cheng and Wu (2015), the best strategy to minimize the negative impact of
behavioural finance in decision making involves addressing the biasness that an investor has.
The author states that rather than sticking to what he thinks or feels, an investor should collect
and analyse opinions that are contrary to his opinions so that he can conduct a critical
evaluation. Further, instead of taking those investment decisions that are being crowded, they
should rather use their judgement and instinct in making those investment decisions.
Additionally, Petersen, Kushwaha and Kumar (2015), states that correct identification of the
risk taking capability and integrating it with personal objectives, an investor can formulate
rational investment decisions that will increase their profitability. Another major strategy for
making correct investment decisions is developing the correct mix of investments to be made
so that the categories which are more beneficial can be identified.
1.2. Research Aims, Questions, and / or Hypotheses
Outline the research aims, questions, and / or hypotheses to be addressed. Ensure the research