Psychological Factors and Investment Decision Making: A Confirmatory Factor Analysis

Ahmed Imran Hunjra,  Salman Ali Qureshi, Lubna Riaz


In the current days, behavioral finance, a new financial sub discipline has ignited a wave in explaining the investment decisions behavioral aspects and is becoming a necessary part of the decision making process because of its great impact on decision making behavior of investors’. The current study aim is to check the questionnaire validity which is used to measure the main determinants of decision-making of investment such as Propensity of Risk, Framing of Problem, Information Asymmetry, and Perception of Risk. 100 investors from Islamabad Stock Exchange depending upon their expert opinion were requested to rate the 39 items initial scale. By using AMOS version 16, after applying confirmatory factor analysis, the instrument of twenty two items is finalized. Future research may be conducted to test the model by using the data collected by this refined instrument in Pakistani Scenario

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