Investor’s Emotional Intelligence and Impact on Investment Decision

Abstract

Emotion and perception are contexts of behavior finance which affects decision making from different perspectives. Emotion intelligence is being explored by this research and found in decisions of investments. Emotion intelligence was revealed by taking sample from Karachi, Lahore and Islamabad stock exchanges with a total sample of 225 investors was studied. On emotion intelligence linear and multi regression was applied with support of correlation. Majority of investors in study are male while they are having experience more than 1 year and investors are well educated. The results revealed that emotion intelligence is having significance impact on investment decisions and plays a vital role in selection of securities. Investors are having self-awareness, self-management, motivation and empathy but low concentration on relationship-management. The overall study revealed low emotion intelligence and much influence by decision. This research is important for investor, firms listed on stock market and new entrants while more significant to researcher to explore the investor behavior in different context in future.