Factors affecting investment decision-making in Pakistan stock exchange

Adeel Mumtaz, Tahir Saeed () and M. Ramzan ()
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Adeel Mumtaz: Preston University, Islamabad, Pakistan
Tahir Saeed: Preston University, Islamabad, Pakistan
M. Ramzan: Preston University, Islamabad, Pakistan

International Journal of Financial Engineering (IJFE), 2018, vol. 05, issue 04, 1-14

Abstract: This study analyzes the impact of various factors like heuristic, risk aversion, financial tools and techniques, firm’s corporate governance, and day-to-day experience on the investor’s decision-making. The sample consisted of 701 individual investors trading in the Pakistan Stock Exchange. The Ordinary Least Square (OLS) is used for the estimation of research models. The findings revealed that heuristics, risk aversion, financial tools and techniques have a significant positive effect on the investment decisions of investors. The day-to-day experience and corporate governance (CG) play an important role in investment decision-making of the financial sector in Pakistan. This study will contribute to creating awareness in a diversity of investors for investing in the equity market and increases the investors’ confidence.

Keywords: Investment decision-making; behavioral factors; psychological factors; organizational-level factors; individual investors (search for similar items in EconPapers)
Date: 2018
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Citations: View citations in EconPapers (6)

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DOI: 10.1142/S2424786318500330

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