Determinants of Individual Investor Behaviour and Its Impact on Investment Decision

Abstract

According to the traditional and Behavioural finance, every individual investor thinks and behaves rationally while trading in equity shares. But when we talk about in reality, the scenario looks totally different. Every investor behaves rationally and do not think much before investing in different portfolios. Individual investors are influenced by many factors which investing like overconfidence, emotions, behaviour of the stock market and other factors which has direct and indirect link with the investment decision. Pakistan Stock exchange is highly volatile and unpredictable in nature. One day its index may go too down and very next day its index may jump very high. Other social and economic factors also affect stock market and in this research paper us focus and analysis determinant of individual investor behaviour of Pakistan stock Exchange and its impact on investment decision making. Regression Analysis is used in order to find importance and relationship between variables.