Impact of Emotional Intelligence on Investment Behavior: A Case Study of Pakistan

Abstract

This study investigates the relationship between emotional Intelligence and Investment behavior in the banking sectors and the Islamabad stock exchange of Pakistan. This study has considered emotional intelligence as the independent variable and investment behavior as the dependent variable. However, the banking and Islamabad stock exchange of Pakistan was the sector chosen to investigate the relationship between variables. The previous study investigated the impact of risk perception as an independent variable on investment behavior as the dependent variable, and it also studied the moderating role of emotional intelligence. Emotional intelligence has not revealed any critical impact as a moderator, but it must be studied as an independent variable to check its effect on investment behavior. The quantitative research method was used as primary data was collected through an adoptive structured questionnaire based on a 5 Likert scale. The responses were recorded from 120 respondents (Investors associated with the banking sector & Islamabad stock exchange of Pakistan) through the convenience sampling technique. Responses recorded were analyzed through statistical tests such as correlation, regression, and moderation analysis by using SPSS Software. The results indicate that emotional intelligence negatively impacts investment behavior in the banking sector and Islamabad Stock exchange of Pakistan. Conclusively, this study proves that change in emotional intelligence practices brings an indefinite shift and an insignificant impact on investment behavior in Pakistan's banking and stock exchange sector.