Use anger to guide your stock market decision-making: results from Pakistan
We assess the role of psychological and social factors in the decision-making of investors mediated by risk perception. We use a questionnaire survey to collect data from 470 individuals who have invested in firms listed at Pakistan Stock Exchange. We use confirmatory factor analysis to refine the i...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
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Taylor & Francis Group
2020-01-01
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| Series: | Cogent Economics & Finance |
| Subjects: | |
| Online Access: | http://dx.doi.org/10.1080/23322039.2020.1733279 |
| _version_ | 1819242469913526272 |
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| author | Abdul Moueed Ahmed Imran Hunjra |
| author_facet | Abdul Moueed Ahmed Imran Hunjra |
| author_sort | Abdul Moueed |
| collection | DOAJ |
| description | We assess the role of psychological and social factors in the decision-making of investors mediated by risk perception. We use a questionnaire survey to collect data from 470 individuals who have invested in firms listed at Pakistan Stock Exchange. We use confirmatory factor analysis to refine the instrument and structural equation model for hypothesis testing. We find that psychological and social factors play a significant role in investors’ decision-making. Specifically, anger, fear and a positive mood positively affect investors’ decision-making whereas stress, social interaction and herding produce negative effects. Furthermore, risk perception plays a mediating role between psychological factors, social factors and the investment decision. |
| first_indexed | 2024-12-23T14:40:18Z |
| format | Article |
| id | doaj.art-78dd870ac7f6489abaf1322d0effb7af |
| institution | Directory Open Access Journal |
| issn | 2332-2039 |
| language | English |
| last_indexed | 2024-12-23T14:40:18Z |
| publishDate | 2020-01-01 |
| publisher | Taylor & Francis Group |
| record_format | Article |
| series | Cogent Economics & Finance |
| spelling | doaj.art-78dd870ac7f6489abaf1322d0effb7af2022-12-21T17:43:13ZengTaylor & Francis GroupCogent Economics & Finance2332-20392020-01-018110.1080/23322039.2020.17332791733279Use anger to guide your stock market decision-making: results from PakistanAbdul Moueed0Ahmed Imran Hunjra1National College of Business Administration & EconomicsUniversity Institute of Management Sciences-PMAS-Arid Agriculture University RawalpindiWe assess the role of psychological and social factors in the decision-making of investors mediated by risk perception. We use a questionnaire survey to collect data from 470 individuals who have invested in firms listed at Pakistan Stock Exchange. We use confirmatory factor analysis to refine the instrument and structural equation model for hypothesis testing. We find that psychological and social factors play a significant role in investors’ decision-making. Specifically, anger, fear and a positive mood positively affect investors’ decision-making whereas stress, social interaction and herding produce negative effects. Furthermore, risk perception plays a mediating role between psychological factors, social factors and the investment decision.http://dx.doi.org/10.1080/23322039.2020.1733279investment decisionrisk perceptionpsychological factorsangerfearsocial interactionindividual investors |
| spellingShingle | Abdul Moueed Ahmed Imran Hunjra Use anger to guide your stock market decision-making: results from Pakistan Cogent Economics & Finance investment decision risk perception psychological factors anger fear social interaction individual investors |
| title | Use anger to guide your stock market decision-making: results from Pakistan |
| title_full | Use anger to guide your stock market decision-making: results from Pakistan |
| title_fullStr | Use anger to guide your stock market decision-making: results from Pakistan |
| title_full_unstemmed | Use anger to guide your stock market decision-making: results from Pakistan |
| title_short | Use anger to guide your stock market decision-making: results from Pakistan |
| title_sort | use anger to guide your stock market decision making results from pakistan |
| topic | investment decision risk perception psychological factors anger fear social interaction individual investors |
| url | http://dx.doi.org/10.1080/23322039.2020.1733279 |
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