A comparison between psychological and economic factors affecting individual investor’s decision-making behavior

The purpose of this study was to understand and determine the difference between the effects of Psychological and Economic factors on individual investor’s decision-making. To achieve this purpose, questionnaire was used as an instrument to gather primary data from the investors of stock exchange us...

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Autores principales: Aamir Sarwar, Ghadeer Afaf
Formato: article
Lenguaje:EN
Publicado: Taylor & Francis Group 2016
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Acceso en línea:https://doaj.org/article/2c9fbf6032fc43fc9dde15708c248b30
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spelling oai:doaj.org-article:2c9fbf6032fc43fc9dde15708c248b302021-12-02T10:44:29ZA comparison between psychological and economic factors affecting individual investor’s decision-making behavior2331-197510.1080/23311975.2016.1232907https://doaj.org/article/2c9fbf6032fc43fc9dde15708c248b302016-12-01T00:00:00Zhttp://dx.doi.org/10.1080/23311975.2016.1232907https://doaj.org/toc/2331-1975The purpose of this study was to understand and determine the difference between the effects of Psychological and Economic factors on individual investor’s decision-making. To achieve this purpose, questionnaire was used as an instrument to gather primary data from the investors of stock exchange using convenient sampling. Total numbers of responses collected were 254. Factor analysis was applied to find out major contributing components of psychological and economic factors. Main components of psychological factors were contributing 61.671% variance to it and components of economic factor were contributing 56.697% variance to it. Findings show that there is significant relationship of psychological factors and economic factors with individual investor’s decision-making. Regression analysis shows that psychological factors as compared to economic factors have more effect on decision-making behavior. Results of t-test showed that there is no significant relationship between the gender and investment decision-making. Results of one-way ANOVA test showed significant relationship between monthly income level of investors and investment decision-making.Aamir SarwarGhadeer AfafTaylor & Francis Grouparticleindividual investor’s decision-makingpsychological factorseconomic factorslahore stock exchangeBusinessHF5001-6182Management. Industrial managementHD28-70ENCogent Business & Management, Vol 3, Iss 1 (2016)
institution DOAJ
collection DOAJ
language EN
topic individual investor’s decision-making
psychological factors
economic factors
lahore stock exchange
Business
HF5001-6182
Management. Industrial management
HD28-70
spellingShingle individual investor’s decision-making
psychological factors
economic factors
lahore stock exchange
Business
HF5001-6182
Management. Industrial management
HD28-70
Aamir Sarwar
Ghadeer Afaf
A comparison between psychological and economic factors affecting individual investor’s decision-making behavior
description The purpose of this study was to understand and determine the difference between the effects of Psychological and Economic factors on individual investor’s decision-making. To achieve this purpose, questionnaire was used as an instrument to gather primary data from the investors of stock exchange using convenient sampling. Total numbers of responses collected were 254. Factor analysis was applied to find out major contributing components of psychological and economic factors. Main components of psychological factors were contributing 61.671% variance to it and components of economic factor were contributing 56.697% variance to it. Findings show that there is significant relationship of psychological factors and economic factors with individual investor’s decision-making. Regression analysis shows that psychological factors as compared to economic factors have more effect on decision-making behavior. Results of t-test showed that there is no significant relationship between the gender and investment decision-making. Results of one-way ANOVA test showed significant relationship between monthly income level of investors and investment decision-making.
format article
author Aamir Sarwar
Ghadeer Afaf
author_facet Aamir Sarwar
Ghadeer Afaf
author_sort Aamir Sarwar
title A comparison between psychological and economic factors affecting individual investor’s decision-making behavior
title_short A comparison between psychological and economic factors affecting individual investor’s decision-making behavior
title_full A comparison between psychological and economic factors affecting individual investor’s decision-making behavior
title_fullStr A comparison between psychological and economic factors affecting individual investor’s decision-making behavior
title_full_unstemmed A comparison between psychological and economic factors affecting individual investor’s decision-making behavior
title_sort comparison between psychological and economic factors affecting individual investor’s decision-making behavior
publisher Taylor & Francis Group
publishDate 2016
url https://doaj.org/article/2c9fbf6032fc43fc9dde15708c248b30
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