IDEAS home Printed from https://ideas.repec.org/a/src/jafeec/v10y2024i2p63-72.html
   My bibliography  Save this article

Behavioral Finance Factors Influence on Investment Decision Making of Individual Investors in PSX and PMEX

Author

Listed:
  • Khan, Azam Anwar
  • Waqas, Muhammad

Abstract

Purpose: This paper explored how investors in PSX and PMEX make investment decisions that either contribute to the success of PSX and PMEX or seem irrational to them because of the same behavioral factors.Design/Methodology/Approach: This qualitative study is aiming at the examination of new features in behavioral finance by shedding light on the representative bias, availability bias, and anchoring bias as they relate to decision making among individual investors in Pakistan. This research will select Stock Broker's Individual Investors in PSX and PMEX to be the unit of analysis for the research of heuristic components.Findings: The analysis of this qualitative research explored that investor in this study use behavioral factors to make their investment decision making, but not have negative experiences using these heuristics. However, their experiences suggest that investors tend to rely on past information from companies which shows that representative heuristic effect investors decision making as well as availability heuristic in investment decision making make investors to take decision irrationally by listening to rumors and tips from broker, friends and family.Implications/Originality/Value: This qualitative study is aiming at the examination of new features in behavioral finance by shedding light on the representative bias, availability bias, and anchoring bias as they relate to decision making among individual investors in Pakistan

Suggested Citation

  • Khan, Azam Anwar & Waqas, Muhammad, 2024. "Behavioral Finance Factors Influence on Investment Decision Making of Individual Investors in PSX and PMEX," Journal of Accounting and Finance in Emerging Economies, CSRC Publishing, Center for Sustainability Research and Consultancy Pakistan, vol. 10(2), pages 63-72, June.
    • Handle: RePEc:src:jafeec:v:10:y:2024:i:2:p:63-72
    DOI: http://doi.org/10.26710/jafee.v10i2.2932
    as

    Download full text from publisher

    File URL: https://publishing.globalcsrc.org/ojs/index.php/jafee/article/view/2932/1712
    Download Restriction: no
    File URL: https://libkey.io/http://doi.org/10.26710/jafee.v10i2.2932?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
    ---><---

    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:src:jafeec:v:10:y:2024:i:2:p:63-72. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Rabia Rasheed (email available below). General contact details of provider: https://edirc.repec.org/data/csrcmpk.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.