Foreign Literature

Financial information is very essential for the investor to have for them to be able to
gain an investment awareness. According to the study of Gitman and Joehnk (2008), the
decision of any investor depends on numbers of criteria and believes. The said believe and
information give an idea and force the investor to take any decision it can be an overreaction of
available information or it can be a suitable decision for the betterment of the firm.
Another study conducted by Tseng (2012), states that individuals who had been investing for
many years concluded that when advice seeking information search improves it causes more
investment by individuals with more earnings in stocks and options. Information search means
necessity of seeking advice from many resources before taking any decision of buying
investment product (Fodness & Murray, 1997).
According to Lin (2002), information plays a significant role in investment decisions to minimize
the risk associated with these decisions. More informed investors can make better decisions so
they try to look for more market information to lower the uncertainty in investment choices.
The study means that more sources of information that an individual gathered about the
investment matters, the more it will be interested to take a decision to invest in the market
avenues.
Varmab (2013), have established that psychological factors do have relationships and
impacts on the decision making of investors in their stock markets. Investors are rational in
their decision making process in the stock market about risk return trade-offs and maximizing
utility. The study revealed that human beings do not behave as rationally as economists
suppose as their decisions at times are affected by their psychological feelings. Means that
learning more about the relationship between the psychological factors and investor’s decision
- making help investors to understand themselves better which leads to a phenomenon of
enhanced rational decision making in the stock market.
REFERENCES:
Gitman and Joehnk, (2008).Factors Affecting Investment Decision Making: Moderating Role of
Investors Characteristics. file:///C:/Users/universal/Downloads/determinants.pdf
Tseng, (2012). Factors Effecting Investment Decision Making Behavior: The Mediating Role of
Information Searches. file:///C:/Users/universal/Documents/296307539.pdf
Fodness & Murray, (2007). Factors Effecting Investment Decision Making Behavior: The
Mediating Role of Information Searches. file:///C:/Users/universal/Documents/296307539.pdf
Lin, (2002). Factors Effecting Investment Decision Making Behavior: The Mediating Role of
Information Searches. file:///C:/Users/universal/Documents/296307539.pdf
Varmab, (2013).Impact of Psychological Factors on Investors’ Decision Making in Malaysian
Stock Market. https://pdf.sciencedirectassets.com/