Abstract:
Individual investors consider various factors to make their investment
decisions. The main objective of this study is to identify the most influential
factors towards the individual investors’ decisions at CSE. The study was
carried out with the sample of fifty respondents representing individual
investors in Colombo & Gampaha district. Structured, questionnaire was used
to collect data and data was analyzed using descriptive statistical, regression
analysis and factor analysis techniques. According to the findings, subjective
factors such as reputation of the company and quality of product are more
influential than other factors. Among economic factors, capital appreciation
was the highly influential factor. Stock Marketability is the mostly influential
factor among speculative factors and reputation of the firms is the mainly
influential subjective factor. Company ethics are the most substantial factor in
cultural factors. Further, it was noted that the companies more focus on capital
appreciation in their short term decision making.
