Behavioral Aspects of Individual Investors for Investment in Bangladesh Stock Market
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Date
2013-12
Authors
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Publisher
Centre for Research on Islamic Management and Business
Abstract
The main objective of this study was to develop a framework about behavioral
aspects of individual investors for investment in the stock market of
Bangladesh. In the field of general information, we found that peoples had
significant years of experience. Majority of the population came in the market
on their self interest. People invested in the market to increase their capital.
People adopted mixed strategy in financing. Most of the investors were small
size in capital. Majority of the respondents were willing to buy in the bearish
market. Majority of the investors were continuous in trading and they did not
like to stay away from investment. They had collected information from
multiple sources. In the field of firm’s image, we found that business
performance, reputation of the firm, firm’s status, feelings for a firm’s product
and services, firm’s involvement in solving community problem influence
investor’s decision. Investors were also influenced by firm’s ethical
operations. Investor’s decision was significantly influenced by the firm’s
accounting information like EPS, financial statement, DPS, expected dividend,
past performance etc. A very good percentage of investors were regularly
reading the articles published in the daily newspaper, collected information
from internet, TV talk show. Money market conditions also influenced investor’s decision. Individual investor’s decision was strongly affected by advice of brokers, friends and family. Affordable price, positive movement, ease of obtaining borrowed fund, past performance could also influence investment decision.
Description
Keywords
Individual investor, Stock market, Behavioral issues, Wealth maximization, Profit maximization