FACTOR INFLUENCING INDIVIDUAL INVESTMENT DECISION MAKING IN STOCKMARKET WITH REFERENCE TO NEPALESE STOCK MARKET

Abstract

This research describes the individual investment decision of investor in Nepalese stock market. This research project tries to find to find the answers to these questions like what are the factors that influence individual investment decision. The main objective of this study is to identify individual investment decision of investor in Nepalese stock market. This study adopted the descriptive research design. Sampling size for the survey were 333 respondents. Primary data for the research were collected from brokers, semi investors who are investing in stock market in Kathmandu Valley through structured questionnaire. To analyze the collected data, Pearson correlation and regression analysis were conducted to identify the relationship between independent variables (firm’s image, advocate recommendation, neutral information and personal financial needs) and dependent variable (individual investment decision). SPSS was used to find the result of the data analysis and interpretation. Based on regression analysis, all the independent variable; neutral information and personal financial needs have significant impact and firm’s image and advocate recommendation have insignificant impact on individual investment decision. It means investors are more concerned about these factors while investing in stock market. The conclusion drawn by this research is that Neutral information is found to be strong variable on individual investment decision. However, a significant finding from the study is the realization that majority of respondents were willing to invest in stock market. It indicates that they are intent towards their decision making. The crucial recommendations and conclusion are provided after interpreting and analyzing the collected data through primary sources for the further research.