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VOL. 6, ISSUE 2 (2024)
Factors affecting investment decision making of individual investor in Nepal
Authors
Tulsa Bhandari
Abstract
Traditional finance theories presume that
investors operate rationally in the stock market, whereas behavioral finance
contends that investors behave irrationally when making investment decisions.
Behavioral finance describes the impact of investor psychology on investing
decisions. The core objective of this article is to measure the relationship
between behavioral factors (Heuristics, Risk aversion, use of financial tool
The level of corporate governance) and investment decision making and to
examine the effect of behavioral factors ((Heuristics, Risk aversion, use of
financial tool The level of corporate governance) on investment decision
making. The questionnaire approach was used to obtain primary data from
individual investors who invested in Nepalese commercial banks, insurance
firms, and stock exchanges. The study collected 400 responses from individual
investors for the survey. We apply correlation analysis and regression analysis
methodologies to achieve our goal. This study concludes that the sample
responses, all behavioral aspects and firm-level corporate governance have an
impact on and contribute to the decision-making process of investors.
Therefore, it can be concluded from the findings that investor’s investment
decision is influenced from heuristic and risk aversion behavior. Therefore, to
influence investor for investment decision making heuristic, risk aversion
factors should be considered.
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Pages:45-50
How to cite this article:
Tulsa Bhandari "Factors affecting investment decision making of individual investor in Nepal". International Journal of Finance and Commerce, Vol 6, Issue 2, 2024, Pages 45-50
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