Abstract
The motive of the research is to assess the practices adopted by investors to counter total risk and profit with the criteria for the investment decision and to know that if insider information is providing better returns from investments. The research is a cross-sectional study of descriptive nature. Moreover, it is a causal research because of various causative influences being studied among the variables. In our study, there are often deeper psychological considerations (such as; profit earning capacity, forecasting capabilities, risk bearing attitude and several others) that even the respondent (brokers) may not be aware of. The researcher has consulted 767 share brokers, investors, and transfer agents of the equity shares. After applying content analysis over the feedback provided by them, the study has originated a questionnaire based on their interviews. The 382 respondents filled the final constructed instruments, and further were analyzed with the help of the Confirmatory factor analysis (CFA) and Exploratory factor analysis (EFA) to measure the model. The model suggests that the insider information always depends upon the profit earning capacity, forecasting capabilities, risk bearing attitude and investment decisions. The results assimilated with the theory of efficient market hypothesis (Fama; 1965) which suggests that no investor will be able to beat the market with either public or private information if the market is in the strong form of efficiency. The outcome complied after the survey did propose the same concept that insider information very soon converts into the public information.
Highlights
The soaring competition in the share market has been one of the most difficult challenges in the trading of the shares
The motive of the research is to assess the practices adopted by investors to counter total risk and profit with the criteria for the investment decision and to know that if insider information is providing better returns from investments
In the study we have considered five different antecedents and the following questions have been extracted after implementing the exploratory factor analysis
Summary
The soaring competition in the share market has been one of the most difficult challenges in the trading of the shares. Narrow margins and escalating pressure to provide better returns are the consequences of the high level of competition in the market. It leads to increasing costs, reduced customer loyalty, and low occupancy rate. The increasing expectation of brokers or investors has changed the face of the market as they want superior returns from their investments. To meet these needs, investors are inclined to form investment strategies. The challenge of maintaining long-term returns and high profit arises in the dynamic environment of the share market
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