Abstract
The basic objective of this research is to study the behavior of stock market investors in
Karachi, Pakistan. There are numerous factors that affect investment behavior of an on
investment behavior. The study first presents the theoretical background and a deep insight of
behavioral finance. Thereafter, a quantitative analysis is presented that shows the impact of
demographic and behavioral factors (i.e. age, market experience, qualification, information
source, risk capacity) on the investment decisions, in order to understand the investors’
sentiments. Primary data was collected through questionnaires. Because of the nature of
variables “Multinomial logistic regression” was performed to find the individual. This paper
aims at studying the demographic and behavioral factors, and finding the impact of these
factors impact of investment decisions on equity returns. It was found that the demographic
and behavioral factors are having significant impact on the investor sentiments that affect
their investment decisions. Thus, it is concluded that there is an utmost need of introducing the
concept of behavioral finance in Pakistan to make the people be able to control over their
emotions to improve their decisions.
Zill e Huma, Rafia Ayub. (2018) An Emerging Need of Introducing Behavioral Finance in Pakistan: Evidence from Investor’s Sentiments and Actions, Journal of Independent Studies and Research-Management, Social Sciences and Economics, Volume-16, Issue-1.
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