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Investors’ Attitude toward Stock Market Risk-A Chittagong Perspective

Author

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  • Islam, Ayub
  • Chowdhury, Emon Kalyan

Abstract

The purpose of this study is to examine the extent to which investor awareness and perceived risk attitudes affect stock market investors’ behavior in the Chittagong Stock Exchange (CSE). CSE performances do not reflect the attitude of investors in this market and bridging the gap between these two is the main objective of this research. This study is the ever first to examine the attitude of investors toward stock market risk in CSE. A cross sectional quantitative research is designed using proportional sampling approach. Total 100 investors were selected from different brokerage houses in Chittagong. The questionnaire includes four parts where Likert scale was used to understand their level of risk. This research finds negative relation between investor awareness and their behavior. It finds positive relation between perceived risk attitude and investment behavior. Study also reveals that there is huge scope to orient investors in this market as they do not posses necessary knowledge and skill to play active role to give birth of efficient market. Law enforcing authority also needs to be more careful to implement the existing rules to bring back the confidence of investors toward trading system, transparency, practicing corporate governance etc.

Suggested Citation

  • Islam, Ayub & Chowdhury, Emon Kalyan, 2023. "Investors’ Attitude toward Stock Market Risk-A Chittagong Perspective," MPRA Paper 118140, University Library of Munich, Germany, revised 09 May 2023.
    • Handle: RePEc:pra:mprapa:118140
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    References listed on IDEAS

    as
    1. van Rooij, Maarten & Lusardi, Annamaria & Alessie, Rob, 2011. "Financial literacy and stock market participation," Journal of Financial Economics, Elsevier, vol. 101(2), pages 449-472, August.
    2. Emon Kalyan Chowdhury, 2022. "Disastrous consequence of coronavirus pandemic on the earning capacity of individuals: an emerging economy perspective," SN Business & Economics, Springer, vol. 2(10), pages 1-16, October.
    3. Malcolm Baker & Jeffrey Wurgler, 2007. "Investor Sentiment in the Stock Market," Journal of Economic Perspectives, American Economic Association, vol. 21(2), pages 129-152, Spring.
    4. Gary Charness & Uri Gneezy, 2010. "Portfolio Choice And Risk Attitudes: An Experiment," Economic Inquiry, Western Economic Association International, vol. 48(1), pages 133-146, January.
    5. Emon Kalyan Chowdhury & Shafaitun Nahar, 2017. "Perceptions of Accountants toward Sustainability Development Practices in Bangladesh," Journal of Management and Sustainability, Canadian Center of Science and Education, vol. 7(3), pages 112-119, September.
    6. Emon Kalyan Chowdhury, 2022. "Strategic approach to analyze the effect of Covid-19 on the stock market volatility and uncertainty: a first and second wave perspective," Journal of Capital Markets Studies, Emerald Group Publishing Limited, vol. 6(3), pages 225-241, October.
    7. Elke U. Weber & Richard A. Milliman, 1997. "Perceived Risk Attitudes: Relating Risk Perception to Risky Choice," Management Science, INFORMS, vol. 43(2), pages 123-144, February.
    8. Mohammad Nayeem Abdullah & Emon Kalyan Chowdhury & Rahat Bari Tooheen, 2022. "Determinants of capital structure in banking sector: a Bangladesh perspective," SN Business & Economics, Springer, vol. 2(12), pages 1-19, December.
    9. M. J. Brennan, 1995. "The Individual Investor," Journal of Financial Research, Southern Finance Association;Southwestern Finance Association, vol. 18(1), pages 59-74, March.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Investor’s attitude; stock market; Chittagong Stock Exchange; risk;
    All these keywords.

    JEL classification:

    • A2 - General Economics and Teaching - - Economic Education and Teaching of Economics
    • A20 - General Economics and Teaching - - Economic Education and Teaching of Economics - - - General

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