Examining Financial Attitudes of Retail Investors and its impact on Investing Activities: A Case of Pakistan Stock Exchange (PSX)

Abstract

The fundamental objective of the research is to analyze the investing behaviors of retail investors. The behavior of retail investors in Pakistan, one of the emerging countries after COVID-19, is used as a case study to analyze the factors that determine investing behavior. In academic research, the association between financial attitude and behavior is well-established. Yet, assessments of financial attitude and behavior continue to vary greatly and are often comprised of a series of questions rather than statements. Individual investors on the PSX were considered a population for the purpose of this study. The researcher collected data from respondents using a non-probability sample (convenience sample) using a questionnaire survey method. The researcher analyzed the data by using SPSS. According to the results of the study, there is a statistically significant relationship between the financial attitude constructs optimism, financial security and deliberative thinking on the trading behavior of investors. The conclusions of this research are significant for academics and policymakers in developing countries.