We assess the role of psychological and social factors in the decision-making of investors mediated by risk perception. We use a questionnaire survey to collect data from 470 individuals who have invested in firms listed at Pakistan Stock Exchange. We use confirmatory factor analysis to refine...

Modern finance theory assumes that the stock market is efficient, and stock prices reflect all available information. However, behavioral finance theory argues that stock prices can be influenced by psychological and emotional factors. This study aims to examine the impact of behavioral finance...

We study three fundamental components of financial agency settings: Perception and communication of investment profiles, the interaction of agents’ and clients’ preferences, and the role of (non-)monetary incentives. The perception of investment profile terminology is very heterogeneous,...