AN EVALUATION OF RELATIONSHIP BETWEEN RISK, RETURN AND SOCIAL STRUCTURE AND THEIR IMPACT ON INDIVIDUAL INVESTOR’S BEHAVIOUR AT PAKISTAN STOCK EXCHANGE
Sumair Farooq (),
Syed Shabib ul Hassan () and
Khalid Mehmood Iraqi ()
Additional contact information
Sumair Farooq: Department of Public Administration, University of Karachi,
Syed Shabib ul Hassan: Department of Public Administration, University of Karach
Khalid Mehmood Iraqi: Department of Public Administration, University of Karachi.
IBT Journal of Business Studies (JBS), 2019, vol. 15, issue 1, 184-192
Abstract:
This research paper focusing on two fold purposes where the fi rst part focuses on providing positive evidence on the nature of relationship between risk and return.Moreover, the second part of the paper deals with analysing the role of risk and return and social structures on the investor’s behaviour in specifi c consideration with Pakistan Stock Exchange PSX formerly Karachi Stock Exchange KSE.This research paper has employed a quantitative approach for the purpose of collection of data and analysis of the results in order to fulfi l the aim and objectives of the study.The data for risk and return has been collected from secondary sources.The risk and return for 50 companies that are listed on Pakistan Stock Exchange and at least once paid dividend have been calculated for 11 years which is from 2007 to 2017.Moreover, in order to collect the data for social structure and investor behaviour the researcher has used survey questionnaire as the research instrument.The questionnaire was fi lled by 558 individual investors who have invested their capital in the stock of companies listed on Pakistan Stock Exchange.The sampling method that was used for the purpose of selecting respondents for getting the questionnaires fi lled was nonprobability method.For all the independent variables the null hypotheses are rejected thus showing signifi cance of relationship.The results from the regression analysis has shown that among all the predicting variables social structure explains the lowest amount of variation in investor’s behaviour.Thus, overall it can be said that the results of this study are in alignment with the previous researches.
Keywords: Risk; Return; Investor’s Behaviour; Stock Exchange. (search for similar items in EconPapers)
Date: 2019
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Persistent link: https://EconPapers.repec.org/RePEc:aib:ibtjbs:v:15:y:2019:i:1:p:184-192
DOI: 10.46745/ilma.ibtjbs.2019.151.15
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