THE IMPACT OF PSYCHOLOGICAL FACTORS ON STOCK BUYING DECISION: A CASE STUDY FROM PAKISTAN STOCK (PSX) & INDONESIAN STOCK MARKET (IDX).

Abstract

Investors stock buying decision always play a key role in the market growth, in which many of the investors focus on the multiple sources information to take investment decision making for this purposes we have apply both qualitative and quantitative approaches, we examine whether or not investors fall prey to three heuristics; namely, anchoring and adjustment, representativeness, and 
availability, while investing in stocks. For the data collection, a self-constructed questionnaire was administered to investors in the Malaysian and Pakistani stock exchanges. Data has been analyzed through description, correlation and regression analysis. The results indicate that all three heuristics are likely to affect the investors' stock buying Decisions. The effect of heuristics is similar across the sample countries.