Research
Impact of Psychological Biases of Investors in Financial Satisfaction
Purpose: The purpose of this study is to investigate the impact of investors behavioural biases in their satisfaction with current financial position. Design/Methodology/Approach: Based on 207 individual investors, present study individually regressed each investors behaviour bias with financial satisfaction. Findings: The results of the study shown behavioural biases like overconfidence and categorization tendency has significant positive impact on investors financial satisfaction levels. Others behavioural biases like Reliance on experts, Selfâ€control bias, Budgeting tendency, Adaptive tendency has no significant impact on investors levels of financial satisfaction. Practical Implications: Financial institutions which provides the financial products and services to clients needs to understand the behaviour of investors regarding different financial planning and investment choices. The findings of present study have implications for financial service providers. Originality/Value: The relationship of psychological biases of individual investors with their financial satisfaction is widely researched in the literature. But in Pakistan no study is observed in this context. Present study fills the gap in literature with the perspective of individual Pakistani investors.
The Effect of Demographic Factors on the Behaviour of Investors during the Choice of Investments: Evidence from Twin Cities of Pakistan
- Investor’s behaviour is influenced by many factors during investment decision making. Demographic profile of investors is also one of the decision influencing factor among others .The aim of this paper is to examine the effect of demographic factors on investors level of risk tolerance regarding the choice of investment. 100 investors from twin cities of Pakistan (Rawalpindi and Islamabad) were selected as sample, chi square test and correlation was conducted to explore the effect of demographic factors on investor’s level of risk tolerance regarding the choice of investment. Result of the paper showed that demographic factors of investors such as academic education, income level, investment knowledge, and investment experience effect the investors level of risk tolerance, while investors gender, marital status, occupation, and family size showed no effect on investors level of risk tolerance .These results are important for managers to advise their clients about better area of investment and risk level according to their demographic profile.
