Individual investment behaviour towards financial market

Abstract

This study aimed to examine the impact of Individual Investment Behaviour towards Financial Market. The main purpose of the study is to examine the factors influencing individual investors’ investment decision making behavior. The research also tends to test the hypothesis related to relationship between behavioral factors and investment decisions. The study was conducted through the primary survey. The sample size for the study includes 400 respondents. The data was collected through the structured questionnaire from the various individual investors and different journals and internet. The research follows the descriptive research design and causal comparative research design. The correlation coefficient and multiple regression model was used to explain the relationship and test the significance between psychological factors, social interaction, information, regulatory policies , firms image and investment decision. The finding from the study indicates that the independent variables like regulator polices and social interaction has positive significant relationship while accounting information has negative relationship with dependent variables that is investment decision making behavior of individual in stock market. There is significant effect between the social interaction, regulator policies and investment decision making behavior of individual in stock market. There is no significant effect between psychological factors, information, front image and investment decision making behavior of individual in stock market. Investors are influenced to social interaction and regulatory policies. So SEBON should make good rules and regulation so that they increase the confident of investors in stock market, which benefits the stock market as investment increases in confidence level.

Key words: Psychological factors, social interaction, Information's, Regulatory policies and Firms image.