Factors Affecting investment Decision in banking sector of Pakistan: Analysis of Islamic and conventional Banks

Abstract

In this research, the factors that affect individual investor when he/she invests in banking sector of Pakistan have been focused. Six independent variables i.e. Psychology, rate of return, religion, culture, customer perception and one dependent variable that is investment decision making were observed. The data was obtained through survey method from customers and from the financial officers of conventional and Islamic banking sectors of Pakistan. Descriptive analysis was conducted to get empirical analysis results in summary along-with numerical representation. Cronbach Alpha was applied for the reliability analysis of the survey design. Hypotheses testing was also conducted and resulted that multiple factors do effect on the investment decision making except culture and customer perception as they had insignificant effect on investment decision making. Although seven top banks of Pakistan were selected with a bunch of tested important variables. However, its quantity may be enriched to substantiate and improve the findings.