FACTORS AFFECTING INDIVIDUAL INVESTOR BEHAVIOR IN KARACHI

Abstract

Purpose: This examination study is aimed at investigating the behaviors of individual investors in the process of making investment decision on Pakistan Stock Exchange. This study has highlighted the behavior of individual investors in that plays significant role during the decision making process. The study incorporated various behaviors such as mental accounting, herding, over confidence bias, past tiends and market information along with other behavioral factors that influence the decision making of an individual Research Methodology: For the purpose of this research, deductive approach has been adopted for conducting the research work. The data for the purpose of this research has been collected through primary data collection method and has been analyzed through undertaking the quantitative analysis method. The responses has been collected through the closed ended questionnaire, designed on the likert scale. The results has been analyzed through using SPSS software. Liner regression and descriptive analysis has been used for analyzing the responses of the participants. Findings of the Research: The research concluded that the behavioral factors do plays role in the individual decision making. It was further observed that over confidence bias behavior was found dominant and the participants provided mixed responses on the behavioral biases that are involved in the decision making process.