overnight from positive to negative to neutral. Firm's image plays a role in investor's mind, whether to or not to invest in that firm's stock. Firm's image also act as one of the behavioral biases of investors where investors like to invest in company with a good reputation and size.Advocate recommendation: The investor who already holds a stock may respond to an analyst recommendation in one of four ways: the investor may hold stock on a sell recommendation, the investor may sell stock on a hold recommendation, the investor may hold stock on a hold recommendation, or the investor may sell stock on a sell recommendation. Prior accounting research has examined how the type of analyst and the nature of the analyst report affect investor behavior. They found that because of the existence of incentives for analysts to issue favorable recommendations, investors weight other information in the analyst report more heavily when they observe a buy rather than a sell recommendation. This factor includes purchase recommendations from brokerage houses and individual stock brokers. Recommendations from friends or coworkers marginally loaded on this factor as well.
STOCK SELECTION PROCESS31Presentation and analysis of dataThe aim of this study is to find out the relationship between the factors affecting stock selection process and investment decision. To address the aim, this study employs various tools and techniques in order to find the relationship. This chapter gives detailed information on the results of this study, with refined discussion.In this chapter, we examine the factors likely to affect the investment decision. This chapter has been divided into two sections: first section includes the presentation and analysis of the data and the second section includes the concluding remarks.Analysis of dataThis study relies on the analysis of primary data. This section has been further divided into three subsections. In the first subsection presents the descriptive statistics, the second subsection presents the analysis and result of independent samplet-test and the third subsection shows the analysis and result of correlation.Table 2-4 summarizes the frequency of all the moderating variables under study (gender, education level and age group). It includes the frequency value over theperiod under study with 100 observations made in four different brokerage firms in Kathmandu. The number of male and female who responded the survey are 58 and 42 respectively. Among the respondents, 8 had completed SLC, 15 had completed their education till Intermediate or +2 levels, 40 till Bachelor and 37 had completed their Masters level. 8 respondents were below age of 20, 46 respondents fell between the age group of 20-30, 34 fell between age group of 31-40 and 12 respondents were above the age of 40.
STOCK SELECTION PROCESS32Among the respondents, 95 believed that accounting information play a significant role in influencing stock market while 5 did not believe that to be the case.