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Factors influencing Individual Investor Behaviour: Evidence from the Kuwait Stock Exchange

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Listed:
  • Sadeq J. Abul

Abstract

This study investigates the effects of psychological factors on investor behaviour regarding the Kuwait Stock Exchange (KSE). These psychological factors are, namely- excessive optimism vs pessimism, herd behaviour and risk appetite. The data for this study obtained from KSE and a survey of a random sample of 398 individual investors. By using qualitative analysis and based on the theory of behavioural finance, the study findings show that herd behaviour, optimism and psychology risk have an impact on the individual investors’ decisions. However, we did not find any evidence of overconfidence behaviour’s effects on investors’ decisions. To our knowledge, KSE has been examined by several researchers without taking into consideration the effects of psychological factors on individual investor decisions. This study finds that psychological factors play a significant role in individual investors’ decisions regarding KSE. This study might contribute positively to the development of this field of research in (KSE).

Suggested Citation

  • Sadeq J. Abul, 2019. "Factors influencing Individual Investor Behaviour: Evidence from the Kuwait Stock Exchange," Asian Social Science, Canadian Center of Science and Education, vol. 15(3), pages 1-27, March.
    • Handle: RePEc:ibn:assjnl:v:15:y:2019:i:3:p:27
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    Cited by:

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    2. Zeeshan Ahmed & Shahid Rasool & Qasim Saleem & Mubashir Ali Khan & Shamsa Kanwal, 2022. "Mediating Role of Risk Perception Between Behavioral Biases and Investor’s Investment Decisions," SAGE Open, , vol. 12(2), pages 21582440221, May.
    3. Sanmugam Annamalah & Murali Raman & Govindan Marthandan & Aravindan Kalisri Logeswaran, 2019. "An Empirical Study on the Determinants of an Investor’s Decision in Unit Trust Investment," Economies, MDPI, vol. 7(3), pages 1-23, August.
    4. Ouhinou Amine & Elhachimi Zineb & Kartobi Eddine, 2023. "Study Of The Behavioural Determinants Of Investment In The Era Of The Covid-19 Pandemic Among Socially Responsible Investors In Morocco," Economic Archive, D. A. Tsenov Academy of Economics, Svishtov, Bulgaria, issue 2 Year 20, pages 31-47.
    5. Bose Olatomi Ige & Rufus Olufemi Adebayo, 2024. "The influences of psychological factors on investors decision making in the South African derivative market," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 13(1), pages 267-278, January.
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    More about this item

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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