Behavioral Insights Into Investment Decision-Making: Evidence From the Nepal Stock Exchange

Authors

DOI:

https://doi.org/10.3126/batuk.v10i2.68150

Keywords:

behavioral finance, stock affordability, third-party opinion, herding effect, investment decision, Nepal Stock Exchange

Abstract

This paper provides a reliable foundation for investigating how people's behaviors influence investment decisions. The study surveyed 286 individual investors who participated in the Nepal Stock Exchange, employing a purposive sampling procedure and self-administered structured Likert scale questionnaire. The results indicate that behavioral factors, including stock affordability, information availability, third-party opinions, and herding effect, significantly influence individual investors’ rationality in making investment decisions. The study concludes that in a developing and expanding environment, factors such as disposable income, market trends, and external opinions notably shape investment decisions when individuals choose to invest in the stock market. The alignment of our findings with existing literature reinforces the robustness of our results. The implications of these findings extend to investors, financial advisors, and policymakers alike. Recognizing the influence of behavioral factors can aid in developing strategies to promote informed decision-making and mitigate the adverse effects of herding behavior.

Downloads

Download data is not yet available.
Abstract
323
Pdf
234

Author Biographies

Durga Datt Pathak, Tribhuvan University

Assistant Professor

Sirish Puri

Research Scholar

Bharat Singh Thapa, Tribhuvan University

Asst. Professor

Downloads

Published

2024-07-30

How to Cite

Pathak, D. D., Puri, S., & Thapa, B. S. (2024). Behavioral Insights Into Investment Decision-Making: Evidence From the Nepal Stock Exchange. The Batuk, 10(2), 29–41. https://doi.org/10.3126/batuk.v10i2.68150

Issue

Section

Part I: Management Science