Investors Investment Decisions in Capital Market: Key Factors

Md. Ariful Islam; Md. Imtiaj Rahman; Salahuddin Yousuf

Authors

Md. Ariful Islam
Md. Imtiaj Rahman
Salahuddin Yousuf

Keywords:

investor, investment decision, capital market

Abstract

This primary data based study attempts to explore the factors the investors of capital market critically consider while making their investment decisions. Study took place in Bangladesh, an economically potential developing country. A total of 125 investors were surveyed conveniently with a structured questionnaire containing 25 variables. Broad category of factors are 'Internal & Economic', 'Internal & Supporting', 'Internal & Regulatory', 'Company Image', 'Market Info', 'External' and 'Market Situation'. Specific variables like dividend, EPS, company goodwill, industry growth, SEC regulation, and change in Govt. policy are found to be positively influential. The least influential factors are P/E ratio, price hike of necessary goods, market rumor etc.

Downloads

How to Cite

Investors Investment Decisions in Capital Market: Key Factors. (2015). Global Journal of Management and Business Research, 15(C4), 1-10. https://journalofbusiness.org/index.php/GJMBR/article/view/1665

Download Citation

References

R Al-Qenae, C Li, B Wearing (2002) The information content of earnings on stock prices: The Kuwait Stock Exchange. 6(3&4), 197-221.

Nathan Balke, Mark Wohar (2006) What Drives Stock Prices? Identifying the Determinants of Stock Price Movements. 73(1), 55-78.

D Benson (2002) The effects of stock market development on growth and private investment in lower-income countries. 3(3), 211-232.

John Cochrane (1992) Explaining the Variance of Price-Dividend Ratios. 5(2), 243-280.

D Docking, P Koch (2005) Sensitivity of investor reaction to market direction and volatility: dividend change announcements. 28(1), 21-40.

Mansor Ibrahim (2003) Macroeconomic forces and capital market integration A VAR analysis for Malaysia. 8(1), 19-40.

N Joseph, P Vezos (2006) The sensitivity of US banks' stock returns to interest rate and exchange rate changes. 32(2), 182-199.

E Khan (2006) Factors Affecting the Selection of a Particular Product: A Behavioural Study on Consumer Goods Toothpaste. 7(2), 113-118.

Ross Levine, Sara Zervos (1998) Stock Markets, Banks, and Economic Growth. 88, 537-558.

N Malhotra (2008) Marketing Research: An Applied Orientation. 5.

Ramin Maysami, Tiong Koh (2000) A vector error correction model of the Singapore stock market. 9(1), 79-96.

A Mobarek, K Keasey (2000) Weak-form market efficiency of an emerging Market: Evidence from Dhaka Stock Market of Bangladesh. 1-30.

Mostafizur Rahman (2006) Fama-French's CAPM: An Empirical Investigation on DSE. 6(10), 2297-2301.

M Raihan, M Ullah (2007) Chittagong stock market of Bangladesh: Turning of a weakform market into an efficient market.

A Singh (1971) Take-overs; Their Relevance to the Stock Market and the Theory of the Firm.

Ajit Singh (1997) FINANCIAL LIBERALISATION, STOCKMARKETS AND ECONOMIC DEVELOPMENT*. 107(442), 771-782.

A Timmermann (1995) Cointegration tests of present value models with a time-varying discount factor. 10(1), 17-31.

Dimitrios Tsoukalas (2003) Macroeconomic factors and stock prices in the emerging Cypriot equity market. 29(4), 87-92.

R Udegbunam, P Eriki (2001) Inflation and stock price behavior: Evidence from Nigerian stock market. 20(14), 1.

W Wong, B Liu, Y Zeng (2009) Can price limits help when the price is falling? Evidence from transactions data on the Shanghai Stock Exchange. 20(1), 91-102.