Factors Affecting Investor Decision Making: A Case of Nepalese Capital Market

Abstract

From the past decades, the financial market has been suffering from the unforeseen and sudden economic turbulences that have been directly or indirectly contributing for the stock returns. The study primarily analyzes the market reactions to tangible information and intangible information in Nepalese stock market and to examine the investors’ opinions in Nepalese stock market issues. The sample size is 185 stock investors and the response rate is 27 percent. The major findings of the study are: the capital structure and average pricing method is one factor that influence the investment decisions, the next is political and media coverage, the third factor is belief on luck and the financial education, and finally the forth component for stock market movement is trend analysis. Thus, it is concluded that both the tangible and intangible information are essential to succeed in Nepalese capital market.

Keywords: Tangible Information, Intangible Information, Nepalese Capital Market