Bulathsinhala Arachchige Hirindu Kawshala

Postgraduate Research Student
Bachelor of Commerce (Special) in Business Technology, Msc in Management (Finance)


My research project


Research interests


B.A.H Kawshala, P. A. N. S Anuradha, Mohamed M. Shamil, Hirindu Kawshala Bulathsinhala Arachchige (2020)SOCIO-ECONOMIC, TRADING SOPHISTICATION AND SELF-REFLECTION ON INVESTORS’ HERDING BIAS: EVIDENCE FROM COLOMBO STOCK EXCHANGE, In: International Journal of Management, Innovation & Entrepreneurial Research6(2)pp. 128-138

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.