Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/245287 
Year of Publication: 
2020
Citation: 
[Journal:] Cogent Economics & Finance [ISSN:] 2332-2039 [Volume:] 8 [Issue:] 1 [Publisher:] Taylor & Francis [Place:] Abingdon [Year:] 2020 [Pages:] 1-29
Publisher: 
Taylor & Francis, Abingdon
Abstract: 
We assess the role of psychological and social factors in the decision-making of investors mediated by risk perception. We use a questionnaire survey to collect data from 470 individuals who have invested in firms listed at Pakistan Stock Exchange. We use confirmatory factor analysis to refine the instrument and structural equation model for hypothesis testing. We find that psychological and social factors play a significant role in investors' decision-making. Specifically, anger, fear and a positive mood positively affect investors' decision-making whereas stress, social interaction and herding produce negative effects. Furthermore, risk perception plays a mediating role between psychological factors, social factors and the investment decision.
Subjects: 
Investment decision
risk perception
psychological factors
anger
fear
social interaction
individual investors
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article

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