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![Reliability:
Cronbach’s Alpha .513 on 11 items (Acceptable i.e., >0.50)
Validity:
Kaiser-Meyer-Olkin (KMO) Measure of Sampling Adequacy is:
.501 (0.5 – 0.8 ‘good’)
Bartlett’s Test of Sphericity is:
approximate chi-square 89.826 with 55 df [significant]
Summary:
Variables are correlated. Samples are adequate. So:
the null hypothesis that the variables are uncorrelated is rejected](https://image.slidesharecdn.com/factorsaffectingtheinvestorsdecisionmaking-180709164351/75/Factors-affecting-the-investors-decision-making-21-2048.jpg)
Uploaded byAssad Rifat
Factors affecting the investors decision making
The document presents a study examining factors influencing investor decision-making in Bangladesh's share market, focusing on investment returns, self-image, and psychological factors. Through a survey of 44 investors, the study finds a statistically significant correlation between investment factors and decision-making behavior, rejecting the null hypothesis. Recommendations for investors include considering advice from agents and leveraging publicly available information.
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Factors affecting the investors decision making
- 2. Presentation on Factors affectingthe investors decision making A theoretical review of literature and the scenario from a developing country Presented By Md. Assad Uddin ID: 1402010002 BBA Program School of Business Britannia University Supervisor Md. Alam Shikdar Lecturer School of Business Britannia University
- 3. Introduction • Objective ofthe study • Scope of the study • Limitations of the Study
- 4. Objective of thestudy • To determine if the identified factors influence investors decision making in the share market
- 5. Limitations of theStudy • Lack of Information • Lack of knowledge and experience among the targeted population
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- 8. Investor • An investoris any person who commits capital with the expectation of financial returns.
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- 10. Factors affecting InvestorsDecision making • Investment returns and economic conditions • Self-Image/Firm Image • Psychological factors • Advocate recommendations
- 11. Investment returns andeconomic conditions • Price movements • Dividend policy • Returned on Investment (ROI) • Corporate earnings • Stock Price
- 12. Self-Image/Firm Image • ThePast Performance • Company Goodwill
- 13. Psychological factors • Riskfactors
- 14. Advocate recommendations • AgentsAdvice or Brokers Recommendation • Media & Internet
- 16. Sources of data Primarydata Secondary Data
- 17. Methodology Sampling Method: RandomSampling Sample size: 44 respondents (i.e., investors) 11 Variables: 10 Independent and 1 Dependent Questionnaire: Self-administered Scaling: 5-point Likert scale
- 18. Hypothesis • Null Hypothesis(H0): Investment factors do not have any influence on the decision making behavior of investors of Bangladesh. • Alternative Hypothesis (H1): Investment factors have influence on the decision making behavior of investors of Bangladesh.
- 19. Code Factors affectinginvestors decision making 1=SD 2=D 3=N 4=A 5=SA F01 Price Movement of the company stock affects my investment decisions 1 2 3 4 5 F02 Past financial performance is an important factor that affects my investment decisions 1 2 3 4 5 F03 Company goodwill affects my investment decisions 1 2 3 4 5 F04 A company’s dividend policy is an important factor that affects my investment decisions 1 2 3 4 5 F05 Earnings of the company plays an important role in my investment decision 1 2 3 4 5 F06 Return on Investment is an important factor that affects my investment decisions 1 2 3 4 5 F07 Level of risk in the market is an important factor that affects my investment choices 1 2 3 4 5 F08 Trends in the general price level affects my investment decisions 1 2 3 4 5 F09 Publicly available information on websites, media etc. affect my investment choices 1 2 3 4 5 F10 Recommendations from agents or stock broker’s affect my investment choices 1 2 3 4 5
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- 21. Reliability: Cronbach’s Alpha .513on 11 items (Acceptable i.e., >0.50) Validity: Kaiser-Meyer-Olkin (KMO) Measure of Sampling Adequacy is: .501 (0.5 – 0.8 ‘good’) Bartlett’s Test of Sphericity is: approximate chi-square 89.826 with 55 df [significant] Summary: Variables are correlated. Samples are adequate. So: the null hypothesis that the variables are uncorrelated is rejected
- 22. Result of CorrelationAnalysis The positive values of Correlation rejects the null hypothesis (H0) that “Investment factors do not have any influence on the decision making behavior of investors of Bangladesh” & Proves or accepts the alternative hypothesis (Ha) that “Investment factors have influence on the decision making behavior of investors of Bangladesh” So, it is statistically proved that there is a relationship as expected.
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