INVESTOR BEHAVIOUR AND INVESTMENT DECISIONS : EVIDENCE FROM PAKISTAN STOCK EXCHANGE
This research aims to understand the influence of behavioural factors on investment decisions in the Pakistan Stock Exchange (PSX). This study gathered primary data using a survey-based questionnaire from 318 individual investors. The issue being investigated in this study is how behavioural element...
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| Main Authors: | , , , , |
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| Format: | Article |
| Language: | English |
| Published: |
Asian Academy of Management and Penerbit Universiti Sains Malaysia
2023
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| Subjects: | |
| Online Access: | http://ir.unimas.my/id/eprint/44592/1/INVESTOR%20BEHAVIOUR.pdf http://ir.unimas.my/id/eprint/44592/ https://ejournal.usm.my/aamj/article/view/aamj_vol28-no2-2023_1 https://doi.org/10.21315/aamj2023.28.2.1 |
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| Summary: | This research aims to understand the influence of behavioural factors on investment decisions in the Pakistan Stock Exchange (PSX). This study gathered primary data using a survey-based questionnaire from 318 individual investors. The issue being investigated in this study is how behavioural elements, such as sentiment, overconfidence, over- and underreaction, and perceived market efficiency, affect investment choices made on the PSX, with
a particular emphasis on the limited predictive power of herd behaviour. The sample data were analysed using partial least square-structural equation modelling (PLS-SEM) based
approach. Results indicate that financial knowledge, sentiment, overconfidence, over- and under-reaction, and perceived market efficiency significantly affect the investment decision. Interestingly, herd behaviour does not play a significant role in predicting investment
decisions. However, we are certain that this study will provide a better understanding of the relationship between behavioural factors and an investor’s investment decision in
Pakistan. |
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