Please use this identifier to cite or link to this item: http://prr.hec.gov.pk/jspui/handle/123456789/18876
Title: Antecedents of Emotional Biases of Investors in the Stock Market of Pakistan (PSX) along with the Scale Development of Emotional Biases
Authors: Awais, Muhammad
Keywords: Bussiness & Management
Finance
Issue Date: 2020
Publisher: Iqra University Karachi, Karachi.
Abstract: The purpose of this dissertation is to explain as well as explore the reasons behind the emotional biases of investors (Endowment, Loss-aversion, Optimism, Regret-aversion, Self-control, & Status Quo) in the stock market of Pakistan and develop scales to be used by regulators in developing training for those investors leading to a more efficient market. The thesis hypothesized antecedents of emotional biases to test and explain that which antecedent is playing a role (strongest - weakest) towards the generation of emotional biases in the investors of PSX at the time of decision making. An emotional bias is a falsification in intellect and decision making because of emotional aspects. i.e., a person will be generally motivated to rely on something that has a positive emotional effect, which gives a satisfactory feeling, although there is proof to the opposing. The initial phase of dissertation involves semi-structured interviews taken from the experts and investors of the PSX and applies NVivo on their summarized results to get a word-cloud for figuring the specific antecedents of emotional biases, and check the content and context validity of the developed scale by confirming the scale after the approval of 5 language and 5 market experts. The second phase involves the floatation of self-developed scales and to: apply Kaiser-Meyer-Olkin (KMO) test to confirm the sample size for the study; apply Bartlett’s test of sphericity to check the appropriateness of the items; check the outliers and apply Exploratory Factor Analysis (EFA) on the results for the reduction of over-loading items. The third phase involves the floatation of refined scales with small sample size as compare to earlier phase and to apply inter-item correlation among items in order to get more refined scales. The fourth phase involves the floatation of scales with small sample size as compare to earlier phase to check the iv reliability (if item deleted) of factors, association among factors, and regression among factors. The last phase involves the floatation of more refined scales with small sample size as compare to earlier phase to confirm the factors for scales through Principal Component Analysis (PCA). This dissertation accepted 21 hypotheses out of 29 on aggregate basis. This dissertation explained as well as explored the: Greed, Emotional Attachment, and Own Perception are the antecedents of Endowment; Lack of Analytical Skills, Risk-Averse Behavior, and Past Belief are the antecedents of Loss-aversion; Seasonal Forecast, Firm’s Reputation, and Uncertainty are the antecedents of Optimism; Lack of Analyzing Ability, Inappropriate Information, Errors of Commission, and Conservatism are the antecedents of Regret-aversion; Own Perception and Financial Illiteracy are the antecedents of Self-control; and Reference Point, Cognitive Dissonance, and Unfamiliarity with Products are the antecedents of Status Quo.
Gov't Doc #: 22395
URI: http://prr.hec.gov.pk/jspui/handle/123456789/18876
Appears in Collections:PhD Thesis of All Public / Private Sector Universities / DAIs.

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