Collected data was described by mean and sig. values, and 7 hypotheses were tested through independent sample t-test and correlation respectively. The major findings of the study are as follows: 1.There were a total of 4 variables i.e. three were independent (accounting information, firm's image and advocate recommendation) and one was dependent (investment decision). 2.Investor's perception of accounting information and its effect on investment decision was not different across gender.3.Perception of firm's image and its effect on investment decision was not different across gender among the investors.4.Advocate recommendation and its effect on investment decision was not different across gender among the investor's.5.It was seen that all the factors (accounting information, firm's image and advocate recommendation) had a positive and significant relationship with investment decision.
STOCK SELECTION PROCESS35ConclusionThis study examines equity selection criteria of investors in Nepal. It attempts to understand the main factors that could influence stock selection decision. Accounting information, firm's image and advocate recommendation were the main factors identified and taken into consideration for the study. The main influencing factors affecting investment decision did not differ across gender. Both male and female investors have the same perception towards accounting information, firm's image and advocate recommendation during investment decision. Also it's seen that all the factors (accounting information, firm's image and advocate recommendation) have some degree of relationship with investment decision. If perception of a certain investor towards any of these factors increases, the likelihood to invest in that stock by that investor also increases. Selection of equity depends on investor's market awareness; they seek stability of investment and capital preservation, use performanceof the stock during the recent past and are risk concerned. The asset prices are closely determined by the investor's expectation of both the firm related factors and market wide factors. Therefore, investment decision of investor investing in NEPSE are highly inclined towards the reliability of accounting information, the reputation of the firm and good standing of a particular stock in the market. Recommendation of a stock by a friend, family or colleague also plays a role in skewing investor perception towards that stock. This research would be helpful not only for aspiring investors or any other researcher, but might also be helpful for students and educators for their future findings.
STOCK SELECTION PROCESS36BibliographyBennet, E., & Selvam, M. (2011). Investors’ Perception of the Factors Influencing the Stock Selection Decision. SSRN Electronic Journal, 4(20).