INVESTOR PSYCHOLOGY AND BEHAVIOURAL CHANGES IN THE UKRAINIAN CAPITAL MARKET UNDER THE INFLUENCE OF WAR

Abstract

The aim of the study is to investigate the psychological factors that determine the behaviour of investors in the Ukrainian stock market during wartime and to determine their impact on market dynamics and the investment decision-making process. The article examines the peculiarities of investment behaviour on the Ukrainian stock market under martial law, with an emphasis on the key psychological factors that determine investors' reactions and decisions. It shows that in conditions of high uncertainty and constant information pressure, emotional factors become dominant compared to traditional economic assessments. It has been found that short-term waves of optimism or panic can significantly change the direction of indices, forming irrational behaviour patterns that do not correlate with fundamental indicators. The manifestations of such psychological effects as group behaviour, anchoring effect, unwillingness to fix losses, excessive confidence in market recovery, and a tendencyy to make emotionally driven decisions are analysed. Particular attention is paid to the growing demand for instruments with the highest level of reliability, in particular military bonds, which in wartime perform not only a financial but also a socio-psychological function. The role of the information environment and digital platforms in spreading emotional reactions, which accelerates the formation of ‘information waves’ and increases market volatility, is identified. It is shown that the combination of behaviorural distortions and information influences creates systemic risks for market stabilityy. Based on the results obtained, it is justified that the psychological reactions of investors largely determine the structure of market liquidity and the directions of capital movement in crisis conditions. To increase the stock market's resilience to behavioural shifts, it is advisable to promote financial literacy tools, introduce algorithmic approaches to portfolio management, and create an information environment that minimizes the impact of panic signals. The results obtained deepen the understanding of the specifics of investment behaviour in wartime and create an analytical basis for the development of measures aimed at strengthening financial stability and increasing market adaptability in the post-war period.