Effects of Stock Market Crash on Investors Behavior

Authors

  • Adnan Ali PhD Student IM Sciences
  • Farzand Ali Jan Professor Comsats University of Technology
  • Mughira Jehanzeb The University of Agriculture, Peshawar image/svg+xml

DOI:

https://doi.org/10.31580/jmi.v6i1.42

Keywords:

Investor Behavior, Stock Prices, Market Crash, Brokerage Houses, Cash Investments,

Abstract

Stock exchanges crises have remained the major dilemma for countries from many years. This study was conducted to identify the various factors of the effects of stock market crash on investors’ behavior. The crash occurred in March 2005. The data collected was a five-year w.e.f. 2005, which is the primary data and was collected in Peshawar from brokerage houses. The objective of the study was to investigate the perceptions of investors about the main causes of the crash, to observe the relationship between money losses and the shares invested in high and low rated companies. Chi square test was applied to check the difference between before and after crash investment and association among investment in high and low rated companies. During test result it’s been vivid that my alternate hypothesis that is H1 showed significant result reflecting that sentiment are highly influenced by the fluctuations in stock prices. The results declared that there was significant difference between investment before and after crash. It is recommended that the Government should provide transparency system to give a good image to the country.

Author Biographies

  • Adnan Ali, PhD Student IM Sciences

    PhD Student IM Sciences

  • Farzand Ali Jan, Professor Comsats University of Technology

    Professor Comsats University of Technology

  • Mughira Jehanzeb, The University of Agriculture, Peshawar
    MS, Institute of Business and Management Sciences

References

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Published

2024-04-11

Issue

Section

Research Article

How to Cite

Effects of Stock Market Crash on Investors Behavior. (2024). Journal of Management Info, 2(2), 13-21. https://doi.org/10.31580/jmi.v6i1.42

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