| Title : | Factors influencing investors' behavior: an empirical study of the Nepalese commercial banks | | Material Type: | printed text | | Authors: | Ujjwal Pandey, Author | | Publication Date: | 2013 | | Pagination: | 64p. | | Size: | GRP/Thesis | | Accompanying material: | 2/B | | General note: | Includes bibliography | | Languages : | English | | Descriptors: | Banks
Commercial banks
Investments
Investors
Pandey, Ujjwal
| | Keywords: | 'influencing investors investors banks commercial banks Nepal' | | Class number: | 332.6 | | Abstract: | Several studies on investors’ behavior have been conducted worldwide but very few studies have been carried out in developing economy like Nepal. Identification of factors affecting investors’ behavior is crucial for both commercial banks and shaping the economy of the country as well. The major objective of the study is to analyze the factors influencing investors’ behavior.
The reviews of literatures have shown relationship between various factors such as risk, self-image, recommendations, accounting information, market information, return etc. in both developing and developed countries. Based on the literature reviews, this study has proposed the conceptual framework indentifying market information, accounting information, bank’s image, perceived risk, advocate recommendation and expected return as the most important factors that determine the investors’ behavior in the context of Nepal.
The study is based on primary data. Primary survey questionnaire was conducted to assess the opinion of investors regarding the factors influencing investors’ behavior. For the study purpose 220 questionnaires was distributed to investors with the help of broker house and personal relations out of which 151 questionnaires were collected. For the sampling purpose, random sampling technique has been employed for the study. The Investors has been divided into three level; they are small investor, medium investor and large investor based on investment amount. The primary data was analyzed by using Percentage, mean and frequency distribution. Other statistical techniques such as Spearmen Correlation and chi- Square were also used for the analysis of primary data.
The study reveals that most of investors prefer to buy shares in primary market and most of them prefer to trade in both primary and secondary markets. The survey indicates that majority of Nepalese investors’ investment decisions on shares are based on anticipation of other individuals’ behavior. The tangible components such as capital gain and stock dividends and the intangible component like political and economic changes, level of risk and NEPSE trend are considered the top five most important factors for investment decisions as per the opinion of stock investors’. Likewise, stock investors prefer capital gain and stock dividends rather than the usual cash dividends and for long term investment purpose. Also, after the prior gain the investors become more risk seeking and are more inclined to investment in risky stocks for better return.
The recommendation put forward by this study is that investors should consults the brokers or agents to seek information and advice but their decision should not merely be based on agents advice rather the decision should be based on their careful investigation. Small investors’ participation in secondary market is very thin because they think that secondary market transactions are manipulated by few large investors. Therefore, regulating authorities are recommended to regulate corporate governance practices strictly to promote uninterrupted flow of information to investors. Stock prices in Nepal do not reflect efficient market information. Therefore, there is a need to establish information center that provides right information to investors’ for investment. Poor market intelligence and poor market performance are the two major factors that have caused loss in shares investment in Nepal. So the government should strengthen the information flow channel and discourage market monopoly.
|
Factors influencing investors' behavior: an empirical study of the Nepalese commercial banks [printed text] / Ujjwal Pandey, Author . - 2013 . - 64p. ; GRP/Thesis + 2/B. Includes bibliography Languages : English | Descriptors: | Banks
Commercial banks
Investments
Investors
Pandey, Ujjwal
| | Keywords: | 'influencing investors investors banks commercial banks Nepal' | | Class number: | 332.6 | | Abstract: | Several studies on investors’ behavior have been conducted worldwide but very few studies have been carried out in developing economy like Nepal. Identification of factors affecting investors’ behavior is crucial for both commercial banks and shaping the economy of the country as well. The major objective of the study is to analyze the factors influencing investors’ behavior.
The reviews of literatures have shown relationship between various factors such as risk, self-image, recommendations, accounting information, market information, return etc. in both developing and developed countries. Based on the literature reviews, this study has proposed the conceptual framework indentifying market information, accounting information, bank’s image, perceived risk, advocate recommendation and expected return as the most important factors that determine the investors’ behavior in the context of Nepal.
The study is based on primary data. Primary survey questionnaire was conducted to assess the opinion of investors regarding the factors influencing investors’ behavior. For the study purpose 220 questionnaires was distributed to investors with the help of broker house and personal relations out of which 151 questionnaires were collected. For the sampling purpose, random sampling technique has been employed for the study. The Investors has been divided into three level; they are small investor, medium investor and large investor based on investment amount. The primary data was analyzed by using Percentage, mean and frequency distribution. Other statistical techniques such as Spearmen Correlation and chi- Square were also used for the analysis of primary data.
The study reveals that most of investors prefer to buy shares in primary market and most of them prefer to trade in both primary and secondary markets. The survey indicates that majority of Nepalese investors’ investment decisions on shares are based on anticipation of other individuals’ behavior. The tangible components such as capital gain and stock dividends and the intangible component like political and economic changes, level of risk and NEPSE trend are considered the top five most important factors for investment decisions as per the opinion of stock investors’. Likewise, stock investors prefer capital gain and stock dividends rather than the usual cash dividends and for long term investment purpose. Also, after the prior gain the investors become more risk seeking and are more inclined to investment in risky stocks for better return.
The recommendation put forward by this study is that investors should consults the brokers or agents to seek information and advice but their decision should not merely be based on agents advice rather the decision should be based on their careful investigation. Small investors’ participation in secondary market is very thin because they think that secondary market transactions are manipulated by few large investors. Therefore, regulating authorities are recommended to regulate corporate governance practices strictly to promote uninterrupted flow of information to investors. Stock prices in Nepal do not reflect efficient market information. Therefore, there is a need to establish information center that provides right information to investors’ for investment. Poor market intelligence and poor market performance are the two major factors that have caused loss in shares investment in Nepal. So the government should strengthen the information flow channel and discourage market monopoly.
|
|
Refine your search Apply to external sourcesFactors influencing investors' behavior: an empirical study of the Nepalese commercial banks / Ujjwal Pandey
