General Assessment of Behavioral Preferences of Investors: A Qualitative Study

Authors

  • Abdul Qadeer Superior University, Lahore
  • Dr. Syed Kumail Abbas Rizvi Lahore School of Economics
  • Dr. Ashfaq Ahmad Hailey College of Commerce, Punjab University Lahore

Keywords:

Interviews, behavioral preferences, investment, Pakistan Stock Exchange Lahore

Abstract

The purpose of this study is to ascertain behavioral biases and preference of investors in their investment. In this study, open ended interviews from the investors were conducted at Pakistan Stock Exchange-Lahore to describe their preferences and behavioral aspect in investment. The findings from 10 open-ended interviews shows that the investors hold different preferences and beliefs regarding investment decisions. Collectively, three themes emerged as common beliefs of investors from this study. Knowledge with risk appears more sensible than high risk high return. Secondly, investor does not hold any consistent behavioral pattern, but their behavior is influenced by circumstances. The concept of luck can be justified as irrational behavior only and only if the timing match with your investment. This study contributes in terms of qualitative assessment of individual behaviors and preferences using interviews.

Published

2021-06-30