Determinants of individual investors investment decision in Pakistan stock exchange

Financial wellbeing of individual investor is driven by sound investment decision making ability. This study investigates the determinants influencing investment decision making behaviour among individual equity investors. Primarily, the study investigated the direct impact of financial literacy, be...

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Main Author:	Ahmed, Zaheer
Format:	Thesis
Language:	English
Published:	2019
Subjects:	HF5549.5.M63 Employee motivation
Online Access:	http://eprints.utm.my/id/eprint/92324/1/ZaheerAhmedPAHIBS2019.pdf.pdf
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id	my-utm-ep.92324
record_format	uketd_dc
spelling	my-utm-ep.923242021-09-28T07:33:40Z Determinants of individual investors investment decision in Pakistan stock exchange 2019 Ahmed, Zaheer HF5549.5.M63 Employee motivation Financial wellbeing of individual investor is driven by sound investment decision making ability. This study investigates the determinants influencing investment decision making behaviour among individual equity investors. Primarily, the study investigated the direct impact of financial literacy, behavioural and environmental factors on investment decision making behaviour and financial risk tolerance. The study further highlighted the mediating effect of financial risk tolerance in the relationship between financial literacy, behavioural factors, environmental factors and investment decision making behaviour among individual equity investors. Finally, the study explored the moderating impact of financial experience in the relationship between financial literacy and financial risk tolerance. Using quantitative research design and multi-stage random, and convenience sampling, a survey questionnaire collected data from 382 registered individual investors of Pakistan Stock Exchange. The measurement model was tested by using Exploratory Factor Analysis (EFA) and Confirmatory Factor Analysis (CFA) techniques. Structural model tested the relationships between the constructs and revealed a positive and significant impact of financial literacy, behavioural and environmental factors on investment decision making behaviour and financial risk tolerance among individual equity investors. Similarly, financial risk tolerance mediated the relationship between the determinants such as financial literacy, behavioural factors, environmental factors, and investment decision making behaviour. Moreover, the research discovered slightly increased but insignificant contribution of financial experience as moderator between the relationship of financial literacy and financial risk tolerance. Hence, this study adds empirically by discovering mediating role of financial risk tolerance between the constructs of the model. This study suggests different measures to policymakers for improving financial literacy among individual investors. It also proposes significant functional insights for stockbrokers, investment advisors, and financial managers through examining the investment decision making behaviour of individual equity investors. 2019 Thesis http://eprints.utm.my/id/eprint/92324/ http://eprints.utm.my/id/eprint/92324/1/ZaheerAhmedPAHIBS2019.pdf.pdf application/pdf en public http://dms.library.utm.my:8080/vital/access/manager/Repository/vital:138027 phd doctoral Universiti Teknologi Malaysia Faculty of Engineering - School of Civil Engineering
institution	Universiti Teknologi Malaysia
collection	UTM Institutional Repository
language	English
topic	HF5549.5.M63 Employee motivation
spellingShingle	HF5549.5.M63 Employee motivation Ahmed, Zaheer Determinants of individual investors investment decision in Pakistan stock exchange
description	Financial wellbeing of individual investor is driven by sound investment decision making ability. This study investigates the determinants influencing investment decision making behaviour among individual equity investors. Primarily, the study investigated the direct impact of financial literacy, behavioural and environmental factors on investment decision making behaviour and financial risk tolerance. The study further highlighted the mediating effect of financial risk tolerance in the relationship between financial literacy, behavioural factors, environmental factors and investment decision making behaviour among individual equity investors. Finally, the study explored the moderating impact of financial experience in the relationship between financial literacy and financial risk tolerance. Using quantitative research design and multi-stage random, and convenience sampling, a survey questionnaire collected data from 382 registered individual investors of Pakistan Stock Exchange. The measurement model was tested by using Exploratory Factor Analysis (EFA) and Confirmatory Factor Analysis (CFA) techniques. Structural model tested the relationships between the constructs and revealed a positive and significant impact of financial literacy, behavioural and environmental factors on investment decision making behaviour and financial risk tolerance among individual equity investors. Similarly, financial risk tolerance mediated the relationship between the determinants such as financial literacy, behavioural factors, environmental factors, and investment decision making behaviour. Moreover, the research discovered slightly increased but insignificant contribution of financial experience as moderator between the relationship of financial literacy and financial risk tolerance. Hence, this study adds empirically by discovering mediating role of financial risk tolerance between the constructs of the model. This study suggests different measures to policymakers for improving financial literacy among individual investors. It also proposes significant functional insights for stockbrokers, investment advisors, and financial managers through examining the investment decision making behaviour of individual equity investors.
format	Thesis
qualification_name	Doctor of Philosophy (PhD.)
qualification_level	Doctorate
author	Ahmed, Zaheer
author_facet	Ahmed, Zaheer
author_sort	Ahmed, Zaheer
title	Determinants of individual investors investment decision in Pakistan stock exchange
title_short	Determinants of individual investors investment decision in Pakistan stock exchange
title_full	Determinants of individual investors investment decision in Pakistan stock exchange
title_fullStr	Determinants of individual investors investment decision in Pakistan stock exchange
title_full_unstemmed	Determinants of individual investors investment decision in Pakistan stock exchange
title_sort	determinants of individual investors investment decision in pakistan stock exchange
granting_institution	Universiti Teknologi Malaysia
granting_department	Faculty of Engineering - School of Civil Engineering
publishDate	2019
url	http://eprints.utm.my/id/eprint/92324/1/ZaheerAhmedPAHIBS2019.pdf.pdf
_version_	1747818587015348224

Determinants of individual investors investment decision in Pakistan stock exchange

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