Factors Affecting Individual Investor Decision Making Behaviour - a Study on Investors in Dhaka Chittagong, Bangladesh (original) (raw)
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Khulna University Business Review
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Factors Affecting Investment Decisions: A Study on Bangladesh Stock Market
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Stock market is one of the attractive places for investment among the investors of Bangladesh. There are two stock exchanges namely Dhaka stock exchange (DSE) and Chittagong stock exchange (CSE). People invest their money in both primary and secondary market(s) for the purpose of gaining profit. But the investment situation was not good in Bangladeshi market in the recent past. The investors witnessed two severe stock market crashes in Bangladesh in the years 1996 and 2010. Since then investors encountered much frustration due to gambling, syndication, insider trading, enactment of many laws and their short term and sudden but adverse effect, fluctuating and volatile market conditions, rumor, etc., in freely investing their hard money in this market. This has negatively impacted the natural and stable growth of investment in this market. The main objective of the study is to examine the factors affecting investment decisions in the stock market from the perspectives of Bangladesh. T...
Faculty of Business and Management and UiTM Press Universiti Teknologi MARA, Malaysia., 2019
Individual investments behaviour is concerned with choices about purchases of small amounts of securities for his or her own account. Decision tools often support investment decisions. It is assumed that information structure and the factors in the market systematically influence individuals' investment decisions as well as market outcomes. Decision tools often support investment decisions. It is assumed that information structure and the factors in the market systematically influence individuals' investment decisions as well as market outcomes. Investor market behaviour derives from psychological principles of decision making to explain why people buy or sell stocks. These factors will focus upon how investors interpret and act on information to make investment decisions. The purpose of the study was to identify the factors that influence investment decision making among potential individual investors in Malaysia. Three behavioural factors might influence investment decision making which are accounting-information, firm-image coincidence and personal-financial-needs. A set of questionnaire was distributed to 384 potential investors in Malaysia specifically in housing area of Klang Valley as population of this study. Based on the findings, it showed that there is positive relationship between accounting-information, firm-image-coincidence and personal-financial-needs in investment decision making. Hence, between these three behavioural factors, accounting-information, firm-image coincidence and personalfinancial-needs, the main influential factor is accounting-information. This study also proposed a future research for investment decision making and give implications to the potential investors, community, organization, policy makers and investment practitioners.
International Journal of Management , 2020
Behavioral finance examines psychological and sociological factors that affect decisions when individuals making investment decisions. Investors carry out investment analysis used to examine assets, trends in the market, and past market data. Investors' judgment is linked with decision choices. It is commonly used to analyze information and know-how about business, minimize risk, and their outcome. The current study objects to investigate the impact of different factors like accounting information, self/firm image, advocate recommendations, personal financial needs, and neutral Information on investment decisions. The population of the study consists of all levels of individual investors who have been investing and wanted to invest in selected industries of the Hazara Division. The study was conducted on the 300 investors out of Factors Influencing Investment Decisions of Individual Investors Working in Hazara Division Industrial Zone http://www.iaeme.com/IJM/index.asp 361 editor@iaeme.com 169 investors that constituted the sample size. The current research found that there is a positive and significant impact of these factors on investment decisions. JEL Classifications: G11, B31, E22
2020
Abstract: The present research study executes to identifying the factors effecting the investment decision of individual investor. For this key purpose, we have used primary data by collected five hundred respondents via adopted five-point scale based questions. We have applied multiple linear regression models to examine the association among investment decision of individual investor and risk taking, regret, trust, education, gender. The result indicates that there have negative relationships between regret and investment decision of individual investor. Similarly, investment decision of individual investor and education, risk taking, trust, gender have positively and significantly associated but belief on luck neither positive nor negative relationship with investment decision of individual investment. In the developing countries, local and federal government reciprocally consideration on worthy investment decision of individual investor for promoting their economy.
Determinants of Investment Decision Making: An Empirical Study
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India as a developing country is becoming economically more powerful and requires huge capital for various developmental activities. In order to boost the investment among individual investors, it is necessary to study the investment behaviour of individuals and identify the factors that motivate them to invest, so that idle savings can be channelised into investment. Investment decisions are influenced by many reasons. It is a tolerable fact that the financiers are the central position in the financial market. Behaviour of investors is not fixed. It changes from position to position and from security to security. Hence, it is necessary to identify the factors which influence the investment decisions. In order to increase investment and formulate appropriate theories and policies, it is necessary to understand how individuals invest in the securities and other financial options available.
A Study of the Investor's Behaviour in Making Investment Decisions with A Special Focus on Mumbai
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Behavioural finance is a study that reviews how psychological factors influence investment decisions under unpredictable conditions. It is one of the most significant subjects which make us think about the outlook of individuals when they consider different factors while allocating resources into different investment approaches. We attempted to evaluate the attitudes of individuals when making investment decisions in various investment avenues through this study. But the questions that arise are-What do they think while investing? How do they take investment decisions? Is their decision biased and gets influenced? This paper tries to discover the significant impact of certain behavioural finance decisions like, individuals' overconfidence, interpretation, and representative, anchoring cognitive dissonance, regret aversion, narrow framing, and mental accounting in investment decisions. The study is done by collecting primary research data through a structured questionnaire and a sample of 108 investors was taken from the mumbai region. Though the main objective of the study is finding the impact and importance of behavioural finance in investors' investment decisions, as well as the study of different factors affecting investment decisions and the analysis of investors' attitudes and psychology toward investing, are the other objectives of our study.
Factors Influencing Investment Decisions of Individual Investors
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Investment decisions are based on investor’s psychology than onrational decision making. The study focuses on the factorsinfluencing investment decisions of investors in the Indian capitalmarket, with a sample size of 250 respondents using ANOVA, factoranalysis, and t-test for hypothesis testing. The variable can begrouped in eight summary factors which captured investor’sdecisions. The results point out that the most impelling factors oninvestment decisions of investors are: financial requirements, adviceand recommendations, firm’s image, share price, dividendattraction, macro and micro analysis, higher earning perspectiveand sector performance. The study also found that gender andthe demographic characteristics of investors statistically andsignificantly influence the investment choices of investors.
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Decision making is crucial problem in recent days in all types of situation. People do consider so many things before jumping to any decision. Just like other problems, investment is also one of the major problems faced by different investors. People actually don’t know what their important attributes are in deciding anything. Here, problem is to check relationship between Saving, Age, No of earning persons and Income on investment decision, relation of different attributes on risk taking capacity of rural and urban investors, to examine the importance of different investment attributes among rural and urban investors and to study demographic profile of rural and urban investors. In this paper attempt has been made to examine investment behavior of 200 investors from Gandhinagar District. The study is based upon primary data collected through a structured questionnaire administered to 100 rural and 100 urban investors, drawn through quota sampling according to their various occupati...
An Assessment Study on the ''Factors Influencing the Individual Investor Decision Making Behavior"
Behavioral finance assumes that characteristics of market participants and information structure systematically have an influence on individuals' investment decisions. This research paper aims at identifying the factors that influences the Pakistan's individual investor behavior. Thirty four items under the five categories of variables were taken as independent that influences the individual investment decision making behavior that belongs to self-image/firm image, neutral information, accounting information, personal financial needs and advocate recommendations. Data collection is made with the help of structured questionnaires. Sample size of 125 was considered for the study out of which 40were finance students of University of Gujrat, 30 were finance teachers from different colleges and 55were bank employees of Sialkot, Gujranwala, Lahore and Gujrat. The statistical tools that were used for data analysis were mean, standard deviation, frequency distribution table of variables that have significant influence on decision making and frequency distribution table of variables that have least influence on decision making. Results of the calculated mean shown that all the variables are somewhat affecting the