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Sources of information in decision-making processes of stock market investors

Author
Michał Bacior
Keywords
knowledge management, information source, enterprise value, value perception, investment risk on the capital market
Abstract

With regard to success achieved on the capital market by the investors, effective management of resources, especially knowledge, is a decisive factor, which means that the right choice of data sources and processing them into information that is useful in decision-making  It can significantly contribute to risk reduction, meaning that not the subjective value perception, but the actual value of companies will have the ultimate influence on choices of investment areas, information source selection and factors supporting the decisions. The market value is not objective, but defined by the market, and, at the same time, it exists in two dimensions – actual value, possible to be generated in the sequence of activities performed on resources and calculated by means of economical indices and dimension of virtual set of signs and symbols that influence the perception of company value. The conducted research did not indicate any essential difference between behaviour and choices of individual and institutional investors, whereas these two decision-making procedures are far from the traditional principles of capital investments. Therefore, it is recommended to accept the principles that enable risk reduction.

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