IMPACT OF GLOBAL FINANCIAL CRISIS ON INVESTORS’ PSYCHOLOGY: AN ANALYSIS

R.B. Sharma; Shyam Lal Dev Pandey

R.B. Sharma Assistant Professor, Department of Accounting, College of Business Administration, Al- Kharj University, Al-kharj, Kingdom of Saudi Arabia.
Shyam Lal Dev Pandey Senior Lecturer, School of Management Sciences, Varanasi

Keywords: Global Recession, Impact on Investors ‘psychology, Indian Economy, GDP, Interest Rate, Risk and Uncertainty

Abstract

Nearly Thirteen month ago, panic shown by the bankruptcy of Lehman Brothers had pushed financial markets close to collapse. The worldwide economic slowdown of the advanced countries which started around mid-2007, as a result of sub-prime crisis in USA, led to the spread of economic crisis across the globe. Many hegemonic financial institutions like Lehman Brothers or Washington Mutual or General Motors collapsed and several became bankrupt in this crisis. During this economic meltdown lots of talks have been seen on the investor’s psychology particularly investing in the financial market. The investing world has changed their attitude towards the financial market and has become more conservative. The present paper is an attempt to deal with various dimensions of global liquidity crunch and analyze the behavior of investor during this period.