Impact of Risk Perception on Investment Decision Making in Pakistan Stock Exchange

Abstract

Purpose The major purpose of this study is to assess the Impact of Risk Perception on Investment Decision Making in Pakistan Stock Exchange. Furthermore, to get an idea that which variables and processes are more important for the investment decision making in exchange sector of Pakistan. For this research the dependent variable is investment decision making and independent variables are factors (market risk, political risk, and economic risk). Design and Methodology This study employed a quantitative research approach, utilizing a questionnaire design to collect information. The questionnaire was structured into five sections. The sampling technique employed was random sampling, and the respondents consisted of working professionals from Islamabad who showed an interest in investments. A total of 250 respondents were contacted for data collection. Statistical analysis was conducted using SPSS software, utilizing descriptive analysis through tables and their corresponding analysis. Additionally, inferential analysis was performed using regression methods to facilitate hypothesis testing. Findings This research finds the Impact of Risk Perception on Investment Decision Making in Pakistan Stock Exchange. Practical Implication The outcome of this journal can be helpful for the investment sector. It elaborates which factors for investment decision making should be focused on more to engage more potential in the stock exchange sector.