The Sentimental Influence of Investors on Investment Decision Making

The current study explores the impact of investor sentiments on individual investment decision-making in the Pakistan Stock Exchange (PSX). These factors range from religion, overconfidence, affect heuristics, and demographic variables. Some of these factors impact negatively on an investment decision but, at the same time, others could help the investor s reach logical and rational decisions. Primary data was used to conduct this study. A questionnaire was developed to gather data from the respondents. The sample size included 200 stock investors and brokers from P SX . Convenience sampling technique was used, while E - Views was used as a statistical tool to test the hypothesises. Regression analysis deduced that overconfidence and religion have a significant relationship with investment decision-making, while affect heuristics have an insignificant relationship with investment decision-making. The demographics of the investors were taken as the moderating variable.&nbsp