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Donnish Journal of Business and Finance Management Research (DJBFMR)

April 2015 Vol. 1(1), pp. 001-008

Copyright © 2015 Donnish Journals




Original Research Article


The Impact of Individual Investor’s Perceptions on Perceived Self Efficacy while Trading Internationally


1M. Yousaf Raza, 2Khalid Latif, Touqeer Sultan, Muhammad Bashir, M. Ibrar Khan, and Mushtaq Ahmed

1Mohi Ud Din Islamic University Islamabad, Pakistan.
2International Islamic University, Islamabad, Pakistan.

Corresponding Author E-mail: yousaf.raza@ymail.com

Accepted 2nd April, 2015.



Abstract


Trends are changing and reshaping rapidly and effectively in individual and company business nationally and internationally. How to overcome financial crisis positively is a major concern? This research explains how the individual investor’s insights change and constrain trading and risk enchanting behavior through the financial disaster. Examine and find how investor insights vary significantly during the crisis, with risk acceptance and risk awareness being less explosive than return outlook? During the worst months of the crisis, investors’ return expectations and risk tolerance, decrease, while their risk perceptions increase. Individual investors carry on to trade actively and do not take any risk in savings portfolios during the crisis. Self usefulness pertains to optimistic thoughts to deal with the large stressors. In this way the investor can cope in all the difficulties and can solve the problems with the alternative solutions.

Statement of the Problem

Individual investors’ perceptions change significantly throughout the crisis.

Research Questions

This research is conducted to find out the answer of following questions. 1. How the single investor’s perceptions vary and make trading and risk taking behavior throughout the financial crisis? 2. Can all the investors solve problems they face while trading?

Purpose of the Study

Examine the investors’ correlations of the points of and amendments in perceptions with the levels of self-efficacy and changes in the market and individual investor’s income, while trading respectively.

Significance of the Study

This study has an optimistic emotion about my financial expectations. Small and medium organization whose capital structure is suitable for their growth so they can earn more and attract investor financing by providing high return. If a benchmark for capital structure is available, then it provides guidelines for new firm as well as existing firms to gain extra return on their capital invested.

Objective of the Study

Objective of study is to determine the relation of individual investors’ perceptions on perceived self-efficacy while trading internationally.

Research Methodology

Data was collected from the different organizations and investors investing their money in Pakistan. The survey was completed by 105 employees, 95% responses were observed. The Results were made using Correlation, regression and ANOVA with the available data.

Findings

The results showed that investors and businessmen are more interested in reducing the risks when the country is in crisis. Finding is that investor perceptions diverge significantly during the crisis, with risk acceptance and risk knowledge being less unstable than return position.

Limitations

(1) This study was conducted in twin cities of Pakistan (Rawalpindi/Islamabad) due to time and budget restraints. (2) Covering only financial institutes and investors. (3) The sample size may be on the lower side, it is possible that if there is large sample size, results would be clearer and specified.

Future Work

This research is limited to Pakistani investors only who are trading nationally/internationally; working in Pakistani environment can make their business well by using international techniques. We can make our study more efficient if we judge and contrast with other environmental factors.

Keywords: Self efficacy, Investors, Investment, Trading.

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Cite This Article:

M. Yousaf Raza, Khalid Latif, Touqeer Sultan, Muhammad Bashir, M. Ibrar Khan, and Mushtaq Ahmed. The Impact of Individual Investor’s Perceptions on Perceived Self Efficacy while Trading Internationally. Donnish Journal of Business and Finance Management Research 1(1) 2015 pp. 001-008.


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