Psychological Factors and Investment Decision Making: A Confirmatory Factor Analysis

Journal of Contemporary Management Sciences: Volume 2, Issue 1, Spring 2016

19 Pages Posted: 22 Aug 2018

See all articles by Ahmed Imran Hunjra

Ahmed Imran Hunjra

University of Waikato; Pir Mehr Ali Shah Arid Agriculture University Rawalpindi (PMAS)

Salman Qureshi

Allama Iqbal Open University - Department of Business Administration

Lubna Riaz

Pir Mehr Ali Shah Arid Agriculture University Rawalpindi (PMAS)

Date Written: 2016

Abstract

In the current days, behavioral finance, a new financial sub discipline has ignited a wave in explaining the investment decisions behavioral aspects and is becoming a necessary part of the decision making process because of its great impact on decision making behavior of investors’. The current study aim is to check the questionnaire validity which is used to measure the main determinants of decision-making of investment such as Propensity of Risk, Framing of Problem, Information Asymmetry, and Perception of Risk. 100 investors from Islamabad Stock Exchange depending upon their expert opinion were requested to rate the 39 items initial scale. By using AMOS version 16, after applying confirmatory factor analysis, the instrument of twenty two items is finalized. Future research may be conducted to test the model by using the data collected by this refined instrument in Pakistani Scenario.

Keywords: Confirmatory Factor Analysis, Validity, Perception of Risk, Propensity of Risk, Information Asymmetry, Investment Decisions

Suggested Citation

Hunjra, Ahmed Imran and Qureshi, Salman and Riaz, Lubna, Psychological Factors and Investment Decision Making: A Confirmatory Factor Analysis (2016). Journal of Contemporary Management Sciences: Volume 2, Issue 1, Spring 2016. Available at SSRN: https://ssrn.com/abstract=3229744

Ahmed Imran Hunjra (Contact Author)

University of Waikato ( email )

Te Raupapa
Private Bag 3105
Hamilton, 3240
New Zealand

Pir Mehr Ali Shah Arid Agriculture University Rawalpindi (PMAS) ( email )

Muree Road Rawalpindi
Shamsabad, Punjab 44000
Pakistan
00923457162527 (Phone)

Salman Qureshi

Allama Iqbal Open University - Department of Business Administration ( email )

Sector H-8
Islamabad, Punjab 44000
Pakistan

Lubna Riaz

Pir Mehr Ali Shah Arid Agriculture University Rawalpindi (PMAS) ( email )

Rawalpindi, 44000
Pakistan

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