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VOL. 5, ISSUE 4 (2023)
Overconfidence and investor's investment decision: The moderating role of risk perception and religiosity
Authors
Sabina Bhandari
Abstract
This study investigates the relationship between overconfidence and
investor's investment decisions, with a focus on the moderating effects of risk
perception and religiosity. Employing a descriptive and causal-comparative
research design, the target population comprises all investors associated with
the Nepal Stock Exchange. Convenience/purposive sampling is utilized to gather
data from individual investors actively participating in the Nepali Share
market, involved in buying and selling securities. The study's population size
remains unknown, but a sample of 384 investors is determined using appropriate
statistical formula. The findings emphasize the significance of overconfidence
in influencing investment decisions. They suggest that individuals exhibiting
higher levels of overconfidence are more likely to make investment choices,
potentially leading to distinct investment outcomes. The study sheds light on
the psychological factors that shape investment decision-making processes,
offering valuable insights for investors, practitioners, and financial
advisors. The moderating roles of risk perception and religiosity in the
relationship between overconfidence and investment decisions are explored,
enhancing our comprehension of how individual characteristics interact with
overconfidence to affect investment behavior. By examining these interactions,
the research contributes to a deeper understanding of the complexities
surrounding investment choices, ultimately aiding in the development of more
informed and effective investment strategies.
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Pages:1-9
How to cite this article:
Sabina Bhandari "Overconfidence and investor's investment decision: The moderating role of risk perception and religiosity". International Journal of Finance and Commerce, Vol 5, Issue 4, 2023, Pages 1-9
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