EFFECT OF OPTIMISM, OVERCONFIDENCE, AND STATUS QUO BIAS ON STOCK MARKET PERCEIVED PERFORMANCE: EVIDENCE FROM ISLAMABAD STOCK EXCHANGE

Abstract

This research examined the influence (impact) of individual investor’s behavior on perceived stock market performance. The Optimism, Overconfidence and Status Quo biases were investigated to know their impact on Stock Market Participation. The Questionnaire method was used to collect the data. The data has been collected through 95 sample Questionnaires distributed among individual investors in Islamabad Stock Exchange. While analyzing the data, correlation (Pearson) and regression (linear model) technique were used. The results indicated that Optimism, Overconfidence and Status Quo biases did not have significant impact on Stock Market Participation.