FUNDAMENTAL VERSUS TECHNICAL ANALYSIS: DETERMINANTS OF STOCK EVALUATION STRATEGY AMONG RETAIL INVESTORS
DOI:
https://doi.org/10.69980/0cw8t124Keywords:
Stock Evaluation Strategy, Retail Investors, Multinomial Logistic Regression, Risk Behaviour, Stop-Loss StrategyAbstract
This study examines the determinants of stock evaluation strategy among retail investors. The study investigates the impact of behavioral factors and risk-related factors on stock evaluation methods used by retail investors. The study used primary data from 79 respondents to test whether demographic factors and behavioral factors impact their stock evaluation methods. Multinomial logistic regression analysis was used to study how investment behavior variables including risk profile and willingness to take high risk and portfolio shifting during market downturns and stop-loss practices related to stock evaluation methods. The analysis showed high internal consistency through reliability testing which achieved a Cronbach's Alpha score of 0.818. The regression results showed that behavioral factors did not have any statistically significant effect on evaluation strategy preferences. The presence of inflated coefficients and large standard errors indicates that the model suffers from instability because of its limited sample size and its use of dispersion-based categorical variables. The results show that retail investors use the evaluated strategies because their measured behavioral risk factors do not significantly affect their decision-making process, which emphasizes the need for advanced modeling techniques and multiple research studies to examine this topic in more detail.
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