FACTORS INFLUENCING INDIVIDUAL INVESTORS’ INVESTMENT DECISIONS AT THE DHAKA STOCK EXCHANGE

Abstract

The goal of the study is to identify the factors affecting individual investors’ investment decisions on the Dhaka Stock Exchange (DSE). To do this, the research also looks at how accounting issues, information obtained from independent sources, financial needs, advocate recommendations, and personal reputation/company reputation compliance may all affect an investor's behavior. Data were collected from Dhaka, Bangladesh. The researcher individually delivered a standardized questionnaire to each respondent in order to collect data. There were 27 items in the survey. SPSS 26 and AMOS 24 are used to analyze the functional data from 300 surveys. The Friedman rank test is used to test the research hypotheses. The study revealed that there does appear to be some association between the factors affecting the DSE investors' decisions to invest. The researcher found that expected dividends, the stock's past performance, collecting information about firms, stock index fluctuations, interest in non-stock investment, investment diversification, obtaining borrowed funds easily, broker recommendations, family members’ opinions, friend or coworker recommendations, the company's public reputation, well-organized financial markets, and the ethics of a firm are the most crucial factors that affect individual investors' investment decisions. The results of this study will help investors comprehend the various choices they will have to make based on their current circumstances and the likely results of each choice. The research will also help the companies identify the factors that will have the biggest impact on investors' behavior in the future, which will affect future strategies and policies.