IDEAS home Printed from https://ideas.repec.org/a/aib/ibtjbs/v15y2019i1p184-192.html
   My bibliography  Save this article

An Evaluation Of Relationship Between Risk, Return And Social Structure And Their Impact On Individual Investor’S Behaviour At Pakistan Stock Exchange

Author

Listed:
  • Sumair Farooq

    (Department of Public Administration, University of Karachi,)

  • Syed Shabib ul Hassan

    (Department of Public Administration, University of Karach)

  • Khalid Mehmood Iraqi

    (Department of Public Administration, University of Karachi.)

Abstract

This research paper focusing on two fold purposes where the fi rst part focuses on providing positive evidence on the nature of relationship between risk and return.Moreover, the second part of the paper deals with analysing the role of risk and return and social structures on the investor’s behaviour in specifi c consideration with Pakistan Stock Exchange PSX formerly Karachi Stock Exchange KSE.This research paper has employed a quantitative approach for the purpose of collection of data and analysis of the results in order to fulfi l the aim and objectives of the study.The data for risk and return has been collected from secondary sources.The risk and return for 50 companies that are listed on Pakistan Stock Exchange and at least once paid dividend have been calculated for 11 years which is from 2007 to 2017.Moreover, in order to collect the data for social structure and investor behaviour the researcher has used survey questionnaire as the research instrument.The questionnaire was fi lled by 558 individual investors who have invested their capital in the stock of companies listed on Pakistan Stock Exchange.The sampling method that was used for the purpose of selecting respondents for getting the questionnaires fi lled was nonprobability method.For all the independent variables the null hypotheses are rejected thus showing signifi cance of relationship.The results from the regression analysis has shown that among all the predicting variables social structure explains the lowest amount of variation in investor’s behaviour.Thus, overall it can be said that the results of this study are in alignment with the previous researches.

Suggested Citation

  • Sumair Farooq & Syed Shabib ul Hassan & Khalid Mehmood Iraqi, 2019. "An Evaluation Of Relationship Between Risk, Return And Social Structure And Their Impact On Individual Investor’S Behaviour At Pakistan Stock Exchange," IBT Journal of Business Studies (JBS), Ilma University, Faculty of Management Science, vol. 15(1), pages 184-192.
  • Handle: RePEc:aib:ibtjbs:v:15:y:2019:i:1:p:184-192
    DOI: https://doi.org/10.46745/ilma.ibtjbs.2019.151.15
    as

    Download full text from publisher

    File URL: http://ibtjbs.ilmauniversity.edu.pk/journal/jbs/15.1/15.pdf
    Download Restriction: no

    File URL: https://libkey.io/https://doi.org/10.46745/ilma.ibtjbs.2019.151.15?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Arvid O. I. Hoffmann & Thomas Post & Tom Smith, 2017. "How return and risk experiences shape investor beliefs and preferences," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 57(3), pages 759-788, September.
    2. Arvid O. I. Hoffmann & Thomas Post & Joost M. E. Pennings, 2015. "How Investor Perceptions Drive Actual Trading and Risk-Taking Behavior," Journal of Behavioral Finance, Taylor & Francis Journals, vol. 16(1), pages 94-103, January.
    3. Baker, H. Kent & Hargrove, Michael B. & Haslem, John A., 1977. "An Empirical Analysis of the Risk-Return Preferences of Individual Investors," Journal of Financial and Quantitative Analysis, Cambridge University Press, vol. 12(3), pages 377-389, September.
    4. Ajzen, Icek, 1991. "The theory of planned behavior," Organizational Behavior and Human Decision Processes, Elsevier, vol. 50(2), pages 179-211, December.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Sumair Farooq & Syed Shabib ul Hassan & Khalid Mehmood Iraqi, 2019. "An Evaluation Of Relationship Between Risk, Return And Social Structure And Their Impact On Individual Investor’S Behaviour At Pakistan Stock Exchange," IBT Journal of Business Studies (JBS), Ilma University, Faculty of Management Science, vol. 15(1), pages 15-15.
    2. D’Hondt, Catherine & De Winne, Rudy & Merli, Maxime, 2021. "Do retail investors bite off more than they can chew? A close look at their return objectives," Journal of Economic Behavior & Organization, Elsevier, vol. 188(C), pages 879-902.
    3. Mustafa Okur & Ali Köse & Özgür Akpinar, 2021. "The Soundness of Financial Institutions In The Fragile Five Countries," International Journal of Business Research and Management (IJBRM), Computer Science Journals (CSC Journals), vol. 12(3), pages 89-102, June.
    4. Cheng-Po Lai, 2019. "Personality Traits and Stock Investment of Individuals," Sustainability, MDPI, vol. 11(19), pages 1-20, October.
    5. Mehmet F. Dicle & Kendra Reed, 2019. "Asymmetric return response to expected risk: policy implications," Journal of Financial Regulation and Compliance, Emerald Group Publishing Limited, vol. 27(3), pages 345-356, June.
    6. Riccardo Reith & Maximilian Fischer & Bettina Lis, 2020. "Explaining the intention to use social trading platforms: an empirical investigation," Journal of Business Economics, Springer, vol. 90(3), pages 427-460, April.
    7. Colin C Williams, 2021. "Tackling Undeclared Self-Employment in South-East Europe: from Deterrents to Preventative Policy Measures," Economic Alternatives, University of National and World Economy, Sofia, Bulgaria, issue 2, pages 280-298, July.
    8. Maria Andersson & Ola Eriksson & Chris Von Borgstede, 2012. "The Effects of Environmental Management Systems on Source Separation in the Work and Home Settings," Sustainability, MDPI, vol. 4(6), pages 1-17, June.
    9. Chia-chen Wang & Chin-ta Chen & Shu-chen Yang & Cheng-kiang Farn, 2009. "Pirate or Buy? The Moderating Effect of Idolatry," Journal of Business Ethics, Springer, vol. 90(1), pages 81-93, November.
    10. Tran Huy Phuong & Thanh Trung Hieu, 2015. "Predictors of Entrepreneurial Intentions of Undergraduate Students in Vietnam: An Empirical Study," International Journal of Academic Research in Business and Social Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Business and Social Sciences, vol. 5(8), pages 46-55, August.
    11. Mustapha Bachiri, 2016. "Determinants of Students’ Entrepreneurial Intentions: Evidence from Moroccan University," International Business Research, Canadian Center of Science and Education, vol. 9(11), pages 83-89, November.
    12. Hyun Hye Kim & EunKyoung Han, 2020. "The Application of the Theory of Planned Behavior to Identify Determinants of Donation Intention: Towards the Comparative Examination of Positive and Negative Reputations of Nonprofit Organizations CE," Sustainability, MDPI, vol. 12(21), pages 1-19, November.
    13. Clara Cardone-Riportella & María José Casasola-Martinez & Isabel Feito-Ruiz, 2014. "Do Entrepreneurs Come From Venus Or Mars? Impact Of Postgraduate Studies: Gender And Family Business Background," Working Papers 14.04, Universidad Pablo de Olavide, Department of Financial Economics and Accounting (former Department of Business Administration), revised Sep 2014.
    14. Corinne Mulley & Liang Ma, 2018. "How the longer term success of a social marketing program is influenced by socio-demographics and the built environment," Transportation, Springer, vol. 45(2), pages 291-309, March.
    15. Abayomi Samuel Oyekale, 2015. "Factors Explaining Households’ Cash Payment for Solid Waste Disposal and Recycling Behaviors in South Africa," Sustainability, MDPI, vol. 7(12), pages 1-18, November.
    16. Peng Cheng & Zhe Ouyang & Yang Liu, 0. "The effect of information overload on the intention of consumers to adopt electric vehicles," Transportation, Springer, vol. 0, pages 1-20.
    17. Francisco Díez-Martín & Alicia Blanco-González & Camilo Prado-Román, 2016. "Explaining nation-wide differences in entrepreneurial activity: a legitimacy perspective," International Entrepreneurship and Management Journal, Springer, vol. 12(4), pages 1079-1102, December.
    18. Ruijie Zhu & Guojing Zhao & Zehai Long & Yangjie Huang & Zhaoxin Huang, 2022. "Entrepreneurship or Employment? A Survey of College Students’ Sustainable Entrepreneurial Intentions," Sustainability, MDPI, vol. 14(9), pages 1-15, May.
    19. Alsalem, Amani & Fry, Marie-Louise & Thaichon, Park, 2020. "To donate or to waste it: Understanding posthumous organ donation attitude," Australasian marketing journal, Elsevier, vol. 28(3), pages 87-97.
    20. Insoo Cho & Peter F. Orazem, 2021. "How endogenous risk preferences and sample selection affect analysis of firm survival," Small Business Economics, Springer, vol. 56(4), pages 1309-1332, April.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:aib:ibtjbs:v:15:y:2019:i:1:p:184-192. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Syed Kashif Rafi (email available below). General contact details of provider: https://edirc.repec.org/data/fmilmpk.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.