Factors Influencing Retail Investor Behavior in Making Investment Decision: A Case of Bursa Malaysia

Abstract

This study aims to examine factors that influence retail investor behaviour in making investment decion in Bursa Malaysia. Factors that were tested with retail invesstor behavior include stock price, perceived risk and firm image. Survey questionnaire was used to collect data and yielded 110 responses. The findings revealed that firm image is significantly related to retail investors’ behavior in their investment decision. The empirical evidence in this research provides crucial information to investors, firms, brokers, regulators, financial institutions and government in making appropriate decisions to stabilize the market. In addition, it assists investment advisors to plan effective strategies for their clients.