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Methods of classifying Tunisian investors into homogeneous groups

Hajer Chenini (Faculty of Economics and Management of Sfax, University of Sfax, Sfax, Tunisia)
Anis Jarboui (Faculty of Economics and Management of Sfax, University of Sfax, Sfax, Tunisia)

International Journal of Social Economics

ISSN: 0306-8293

Article publication date: 29 December 2022

Issue publication date: 17 March 2023




Financial theory is based on the assumption of rationality of individuals. Defenders of behavioral finance recommend that the rationality hypothesis of efficiency theory is too narrow and irrelevant (Barberis and Thaler, 2002). The irrationality of the investor is reflected in his choice and his behaviour. However, his choice depends on the way the problem is formulated and described. The irrational investor does not think in terms of final wealth but rather in terms of gains and losses.


This research is interested in the methods of classification of the investors in homogeneous groups. In the study, the classification method used to group individual in the sample is the dynamic aggregation method. However, to identify the number of groups to use in this method, the authors also used the hierarchical method on a sub-sample. Thus, to this end the authors present a topological analysis to test the hypothesis of the heterogeneity of Tunisian investor groups in terms of belief.


The results suggest that the majority of investors are quite irrational. Therefore, the Tunisian investor considers itself irrational because of the presence of several anomalies in its behavior.


This research proposes to help identify the variables that are truly determining in the process of interpreting information. The authors wish to formulate recommendations for the use of information, in order to help professionals and investors in the orientation of the investment strategy. In particular, the authors attempt to indicate the variables to which attention should be paid. In addition, behavioral financial analysis is useful for investors. Thus, taking into account certain irrational phenomena is important to make a decision. In addition, it allows to better identify the investor's own shortcomings and to detect certain negative trends.



Chenini, H. and Jarboui, A. (2023), "Methods of classifying Tunisian investors into homogeneous groups", International Journal of Social Economics, Vol. 50 No. 4, pp. 509-521.



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