Investor's behaviour in the share market of Sri Lanka

Abstract

The aim of the study is to identify the factors that influence individual investor behaviorin stock selection. To achieve this aim, this study investigates the individual investorbehavior in colombo Stock Exchange. The study analyses the perception of 200 surveyresponses. In addition, the views of a further sample of 50 executives obtained througlrinterviews arc analyzed. The survey is done by2019'The investorbehavior is measuredby using five points Likert scale and the data is analyzed using one sample t-test andindependent samPle t-test.The results.of the study convey that company stability is the most influencing factor ofequity ,.l""tion on individual investors, while the past performance of the share is thesecond influencing factor on individual investors' behavior' The remaining factors' inthe order of influence are risk on investment, the recent share price change' andeconomic & political factors. The study conveys that social status, religious beliefs',,get quickly rich" and opinion of the family do not affect the equity selection' Further'the study also conveys that the individual investors do not rely on the content of theannual lePort.