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DECODING INVESTOR DECISIONMAKING UNRAVELING PSYCHOLOGICAL FACTORS AND EDUCATIONAL MODERATION IN FINANCIAL MARKETS

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01 Pages : 1-14

http://dx.doi.org/10.31703/ger.2023(VIII-III).01      10.31703/ger.2023(VIII-III).01      Published : Sep 2023

Decoding Investor Decision-Making: Unraveling Psychological Factors and Educational Moderation in Financial Markets

Abstract

    This study delves into the influence of psychological factors on investors' decision-making, with a focus on the moderating role of education. The target population comprises 883 domestic individual investors registered in the Pakistan Stock Exchange. Employing a structured questionnaire, opinions were gathered from a sample of 275 financial domestic individual investors. The findings reveal a positive and significant association between risk propensity, risk perception, and investment decisions. Conversely, herding behaviour exhibits a negative and significant impact, indicating that heightened herding behaviour reduces investors' decision to invest. Further analysis underscores the combined effect (moderating effect) of risk propensity financial literacy, revealing a significant yet negative impact on investors' decisions, while risk perception financial literacy demonstrates a positive and significant effect. The concluding table highlights the positively significant presence of loss aversion bias.

    Investor Decision-making, Psychological Factors, Education Moderation, Financial Literacy, Herding Behavior

    (1) Kainat Bibi
    MS Scholar, Institute of Business and Management Sciences, Agriculture University, Peshawar, KP, Pakistan.
    (2) Shams Ur Rahman
    Assistant Professor, Institute of Business and Management Sciences, Agriculture University, Peshawar, KP, Pakistan.
    (3) Adil Sufyan Qayum
    PhD Scholar, Institute of Business and Management Sciences, Agriculture University, Peshawar, KP, Pakistan.
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References

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Cite this article

APA

    APA : Bibi, K., Rahman, S. U., & Qayum, A. S. (2023). Decoding Investor Decision-Making: Unraveling Psychological Factors and Educational Moderation in Financial Markets. Global Economics Review, VIII(III), 1-14. https://doi.org/10.31703/ger.2023(VIII-III).01

CHICAGO

    CHICAGO : Bibi, Kainat, Shams Ur Rahman, and Adil Sufyan Qayum. 2023. "Decoding Investor Decision-Making: Unraveling Psychological Factors and Educational Moderation in Financial Markets." Global Economics Review, VIII (III): 1-14 doi: 10.31703/ger.2023(VIII-III).01

HARVARD

    HARVARD : BIBI, K., RAHMAN, S. U. & QAYUM, A. S. 2023. Decoding Investor Decision-Making: Unraveling Psychological Factors and Educational Moderation in Financial Markets. Global Economics Review, VIII, 1-14.

MHRA

    MHRA : Bibi, Kainat, Shams Ur Rahman, and Adil Sufyan Qayum. 2023. "Decoding Investor Decision-Making: Unraveling Psychological Factors and Educational Moderation in Financial Markets." Global Economics Review, VIII: 1-14

MLA

    MLA : Bibi, Kainat, Shams Ur Rahman, and Adil Sufyan Qayum. "Decoding Investor Decision-Making: Unraveling Psychological Factors and Educational Moderation in Financial Markets." Global Economics Review, VIII.III (2023): 1-14 Print.

OXFORD

    OXFORD : Bibi, Kainat, Rahman, Shams Ur, and Qayum, Adil Sufyan (2023), "Decoding Investor Decision-Making: Unraveling Psychological Factors and Educational Moderation in Financial Markets", Global Economics Review, VIII (III), 1-14

TURABIAN

    TURABIAN : Bibi, Kainat, Shams Ur Rahman, and Adil Sufyan Qayum. "Decoding Investor Decision-Making: Unraveling Psychological Factors and Educational Moderation in Financial Markets." Global Economics Review VIII, no. III (2023): 1-14. https://doi.org/10.31703/ger.2023(VIII-III).01