Role of Behavioural Factors in Individual’s Investment Decision Making at PSX: Moderating Role of Financial Literacy

Abstract

The reason for research study is figuring out the effect of Behavioral factors over financial backers' navigation and speculation execution at Pakistan Stock Exchange. As there are only a couple of studies in Pakistan related to behavioral finance, so this study mainly contributes in the field of behavioral finance in Pakistan. This study focuses on existing theories of behavioral finance which led to develop the hypothesis. Data is collected from investors via questionnaire from Pakistan Stock Exchange, after successful collection of data PLS smart software is used to analyze and run the data. The findings and results of the research study show that the behavioral factors have high impact on investors‘ decision making in Pakistani stock markets. The result of the analysis is that all behavioral variables have a significant impact on the decision-making process of investors, which led to the acceptance of all assumptions regarding the level of influence of behavioral factors in decision making for individual investors."