Investment Decisions and Satisfaction of Individual Investors at the Dhaka Stock Exchange: A Behavioral Perspective

Abstract

This study investigates the investment decisions and satisfaction of individual investors at the Dhaka Stock Exchange from a behavioral perspective. It focuses on identifying factors that negatively influence investors' trading attitudes and activities in Bangladesh's stock market. The primary objective is to construct and validate a model that measures the reliability and validity of adopted instruments such as information asymmetry, accounting information, personal values, investment satisfaction, and investment decision-making. The population of interest comprises individual investors active in the Dhaka Stock Exchange. A sample of 120 investors was selected to evaluate the validity of the research instrument. The study employed confirmatory factor analysis to assess convergent validity, ensuring that the selected measures effectively capture the intended constructs. Investors' behavior in financial markets is influenced by several factors. Information asymmetry, where one party has more or better information than others, significantly impacts investment decisions. Effective utilization of accounting information is crucial for investors to make informed choices. Personal values, including risk tolerance and ethical considerations, also play a role in shaping investment attitudes and satisfaction levels. Investment satisfaction is a critical aspect that reflects investors' contentment with their investment outcomes and decisions. By studying these dimensions, the research aims to provide insights into how these factors collectively influence investor behavior and satisfaction within the context of the Dhaka Stock Exchange. The findings of this study contribute to both theoretical understanding and practical implications for investor behavior and market dynamics in Bangladesh. By validating the measurement model through confirmatory factor analysis, the study enhances the credibility of its instruments and findings. This rigorous approach ensures that the constructs under investigation accurately reflect investors' perceptions and experiences. By addressing the identified factors that affect investor attitudes and activities, policymakers and market participants can implement strategies to enhance investor confidence and promote sustainable market growth.