Association of culture with investment decisions in Pakistani context

Abstract

The main aim of present research is to find the association of three cultural dimension with investment decisions. The three chosen dimensions included the following; power distance. individualism/collectivism, and uncertainty avoidance. In order to fulfill the aim of research, the researcher has carried out cross sectional study and data was obtained through questionnaire from 375 respondents from banks and stock exchange of Pakistan. The study has revealed that high power distance has negative association with investment decisions. Likewise, it has indicated that there is negative relationship of uncertainty avoidance with investment decisions. While, there is strong and positive association of institutional collectivism with investment decisions. The results of study have led the researcher to accept all hypotheses. The results of study are highly aligned with prior relevant studies and have significant implications for both theory and practice. vi