Abstract
The current study investigates the behavioural effect on investment decisions made by investors in the Pakistan Stock Exchange (PSX). Data were gathered through a survey using proven items from past literature as reliable and efficient parameters for collecting this information. Questionnaires were distributed among investors in the stock market using convenience sampling. This study utilized multi-regression techniques combined with structural equation modelling techniques (SEM) using SmartPLS-4.0 for statistical analysis. The present study provides a theoretical framework for exploring investors' decision-making processes in the Pakistani stock market by employing prospect theory. Current research incorporates the affect of information searches on investors behaviour, herding effects, heuristics and market variable. The results demonstrate how heuristics, herding and variables significantly impact decisions made by investors in stock markets, making clear their significance in search results. The study offers practical and theoretical implications by extending prospect theory; its findings also offer practical guidelines for policymakers and practitioners who wish to understand how behaviour impacts financial decisions in a developing economy stock market. Keywords: Heuristics, market variable, herding, Pakistan stock exchange, information searching, investment decision-making behaviour, prospect theory, developing economy.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
