AN EVALUATION OF THE RELATIONSHIP BETWEEN RISK, RETURN, AND SOCIAL STRUCTURE AND THEIR IMPACT ON INDIVIDUAL INVESTOR’S BEHAVIOUR AT THE PAKISTAN STOCK EXCHANGE
Download| Volume 15 Issue 1 2019 | |
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| Author(s): |
Sumair Farooq
Syed Shabib ul Hassan
Khalid Mehmood Iraqi
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| Abstract | This research paper focusing on two fold purposes- where the first part focuses on providing positive evidence on the nature of the relationship between risk and return. Moreover, the second part of the paper deals with analyzing the role of risk and return and social structures on the investor’s behavior in specific consideration with Pakistan Stock Exchange (PSX) (formerly Karachi Stock Exchange; KSE). This research paper has employed a quantitative approach for the collection of data and analysis of the results to fulfill the aim and objectives of the study. The data for risk and return has been collected from secondary sources. The risk and return for 50 companies that are listed on Pakistan Stock Exchange and at least once paid dividend have been calculated for 11 years which is from 2007 to 2017. Moreover, to collect the data for social structure and investor behavior the researcher has used a survey questionnaire as the research instrument. The questionnaire was filled by 558 individual investors who have invested their capital in the stock of companies listed on the Pakistan Stock Exchange. The sampling method that was used to select respondents for getting the questionnaires filled was the non-probability method. For all the independent variables the null hypotheses are rejected thus showing the significance of the relationship. The results from the regression analysis have shown that among all the predicting variables social structure explains the lowest amount of variation in investor’s behavior. Thus, overall it can be said that the results of this study are in alignment with the previous researches. |
| Keywords | Risk, Return, Investor’s Behaviour, Stock Exchange. |
| Year | 2019 |
| Volume | 15 |
| Issue | 1 |
| Type | Research paper, manuscript, article |
| Recognized by | Higher Education Commission of Pakistan, HEC | Category | "Y" | Journal Name | IBT Journal of Business Studies | Publisher Name | ILMA University | Jel Classification | E20. L31 | DOI | http://dx.doi.org/10.46745/ilma.jbs.2019.15.01.15 | ISSN no (E, Electronic) | 2409-6520 | ISSN no (P, Print) | 2416-8393 | Country | Pakistan | City | Karachi | Institution Type | University | Journal Type | Open Access | Type of Review | Double Blind Peer Reviewed | Format | Paper Link | http://ibtjbs.ilmauniversity.edu.pk/journal/jbs/15.1/15.pdf | Page | 184-192 | References | Ajzen, I. (1985). From intentions to actions: A theory of planned behavior. In Action control (pp.
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