TABLE 3.

10
Reliability Statistics
Cronbach's N of Items
Alpha
.703
23

INFERENCE
To find the reliability, Cronbach,s Alpha reliability was conducted for factors
influencing individual investors behavior and value being 0.703 for 23 items which is
consistent and reliable.

FACTOR ANALYSIS
Factor analysis is a statistical methods used to described variability among
observed, correlated variables in terms of a potentially lower number of unobserved
variables. It is a technique that is used to reduce a large number of variables into fewer
numbers of factors. This technique extracts minimum common variance from all
variables and puts them in common score. Through factor analysis, one can fine
variables that are correlated to each other, but relatively dependent of other sets of data.
As an index of all variables, the researcher can use for further analysis.

TABLE 3.11
Descriptive Statistics
I avoid selling shares that have decrease in value &
readily sell shares that have increased in value
I tend to treat Each element of my investment
portfolio separately
I ignore the connection between different
investment possibilities
I Consider carefully the price changes of stocks that
i intend to invest in
I Have the over- reaction to price changes of stock
exchanges
Market information is important for my stock
investment
I Put the past trends of stocks under my
consideration for my investment
I analyze the companies 'customer preference
before I invest in the stock
I study about the Market fundamentals of
underlying stocks before making investment
decision
Other investors' decision of choosing stocks types
have impact on my investment decision

Mean

Std. Deviation

4.10

.793

3.98

.772

3.80

.913

3.91

.987

3.46

1.092

4.00

.879

3.93

.730

4.15

.895

4.11

.828

3.75

1.006

Other investors 'decision of the stock volume have

3.67
impact on my investment decision
Other investors 'decision of buying & selling stock
3.71
have impact on my investment decision
I usually React quickly to the changes of other
investors' decisions and follow their reaction to the 3.78
stock market

.929
1.056
.991

I use trend analysis of some representative stocks to

make investment decisions for all stocks that i
invest
I believe that my skills and knowledge of stock
market can i to outperform the market
I forecast the changes in stock prices in the futures
based on the recent stock prices
I prefer to buy local stocks than international stocks
because the information of local stocks is more
available
I Consider the information from my close friends
and relatives as the reliable reference for my
investment decisions
After a prior gain, I am more risk seeking than usual
After a prior loss , I become more risk averse
The return rate of my recent stock investments
meets my expectation
My rate of return is equal to or higher than average
return rate of the market
I feel satisfied with my investment decision in the
last year (including selling, buying, choosing stock,
and deciding the volumes

3.96

.883

3.88

.769

3.78

.832

3.83

.923

3.55

.924

3.59
3.41

1.185
.845

3.83

.999

3.58

1.017

3.89

1.027

TABLE 3.12
KMO and Bartlett's Test
Kaiser-Meyer-Olkin Measure
Adequacy.
Bartlett's Test of Sphericity

of

Sampling

.595

Approx.
Chi-Square

638.347

Df
Sig.

253
.000

The- Kaiser-Mayer-Olkin Measure of Sampling Adequacy is a statistics that indicates

the proportion of variance in variable that might be caused by underlying factors. It
measure varies between 0and1, and values closer to 1 are better. A value of .6 is
suggested minimum. If the value is less than 0.5, the result of the factor analysis
probably wont be very useful. In this study, the value of Kaiser-Mayer-Olkin
Measure of sampling Adequacy is 0.595[59.5%] which is more adequate.

Bartletts Test of Spherical tests the null hypothesis that the correlation matrix is an
identity matrix. An identity matrix is matrix in which all of the diagonal elements are
1 and all of diagonal elements are 0. It also indicates variable is unrelated and
therefore unsuitable for structure direction. A small value (less than 0.05) of the
significance level indicates that a factor analysis maybe useful with data.

Communalities- TABLE 3.13

Extraction
I avoid selling shares that have decrease in value & readily sell shares that
have increased in value
I tend to treat Each element of my investment portfolio separately
I ignore the connection between different investment possibilities
I Consider carefully the price changes of stocks that i intend to invest in
I Have the over- reaction to price changes of stock exchanges
Market information is important for my stock investment
I Put the past trends of stocks under my consideration for my investment
I analyze the companies 'customer preference before I invest in the stock
I study about the Market fundamentals of underlying stocks before making
investment decision
Other investors' decision of choosing stocks types have impact on my
investment decision
Other investors 'decision of the stock volume have impact on my
investment decision
Other investors 'decision of buying & selling stock have impact on my
investment decision
I usually React quickly to the changes of other investors' decisions and
follow their reaction to the stock market
I use trend analysis of some representative stocks to make investment
decisions for all stocks that i invest
I believe that my skills and knowledge of stock market can i to outperform
the market
I forecast the changes in stock prices in the futures based on the recent
stock prices
I prefer to buy local stocks than international stocks because the information
of local stocks is more available
I Consider the information from my close friends and relatives as the
reliable reference for my investment decisions
After a prior gain, I am more risk seeking than usual

.735
.576
.643
.575
.795
.615
.718
.691
.706
.657
.705
.668
.617
.731
.590
.661
.754
.596

After a prior loss, I become more risk averse

The return rate of my recent stock investments meets my expectation

.732
.787
.741

My rate of return is equal to or higher than average return rate of the market

.624

I feel satisfied with my investment decision in the last year (including

selling, buying, choosing stock, and deciding the volumes

.670

INFERENCE

Reveals that Variables have communalities ranging from 0.575 to 0.795, So those
variables are fit for factorization.
TABLE 3.14
TOTAL VARIANCE
Rotation Sums of Squared Loadings

Component
Total
1
2
3
4
5
6
7
8
9

% of Variance
2.711
2.324
1.732
1.600
1.591
1.458
1.444
1.374
1.351

11.789
10.107
7.530
6.954
6.918
6.339
6.280
5.975
5.873

Cumulative %
11.789
21.895
29.426
36.380
43.297
49.636
55.916
61.891
67.764

INFERENCE
From the above table it was found that 23 variables are reduce to 9 factors with
individual variances of 11.789, 10.107, 7.530, 6.954, 6.918, 6.339, 6.280, 5.975, 5.873
respectively the total variance explained by these 23 variables are given by 67.764. The
grouping and the variable loadings of nine factors are presented in the following rotated
compound Matrix.

Rotated Component Matrix-TABLE 3.15

Component
1
2
3
4
5
6
7
Other
investors
'decision of
buying
&
selling stock
have impact
on
my
investment
decision
Other
investors'
decision of
choosing
stocks types
have impact
on
my
investment
decision
I
usually
React
quickly
to
the changes
of
other
investors'
decisions and
follow their
reaction to
the
stock
market
Other
investors
'decision of
the
stock
volume have
impact
on
my
investment
decision
My rate of
return
is
equal to or
higher than
average
return rate of
the market

.677

.677

.671

.659

.644

I Consider
carefully the
price
changes of
stocks that I
intend
to
invest in
I study about
the Market
fundamentals
of underlying
stocks before
making
investment
decision
Market
information
is important
for my stock
investment
I tend to
treat
Each
element of
my
investment
portfolio
separately
I Consider
the
information
from
my
close friends
and relatives
as
the
reliable
reference for
my
investment
decisions
The return
rate of my
recent stock
investments
meets
my
expectation

.706

.686

.576

.529

.480

.766

I
feel
satisfied with
my
investment
decision in
the last year
(including
selling,
buying,
choosing
stock
,and
deciding the
volumes
I forecast
the changes
in
stock
prices in the
futures based
on the recent
stock prices
After a prior
loss
,
I
become more
risk averse
I ignore the
connection
between
different
investment
possibilities
I analyze the
companies
'customer
preference
before
I
invest in the
stock
I believe
that my skills
and
knowledge
of
stock
market can I
to
do
outperform
the market

.719

.549

.751

-.630

.779

.711

After a prior
gain, I am
more
risk
seeking than
usual
I use trend
analysis of
some
representativ
e stocks to
make
investment
decisions for
all
stocks
that I invest
I avoid
selling shares
that
have
decrease in
value
&
readily sell
shares that
have
increased in
value
I Have the
overreaction to
price
changes of
stock
exchanges
I Put the past
trends
of
stocks under
my
consideration
for
my
investment

.827

.836

.813

.483

.418

I prefer to
buy
local
stocks than
international
stocks
because the
information
of
local
stocks
is
more
available

.855

DECISION FACTORS:
From the following statements the investors has to take a investment decision based
on other investors, that are loaded under decision factor shows investors do concerned before
taking any decision
Other investors 'decision of buying & selling stock have impact on my
investment decision [0.677]
Other investors' decision of choosing stocks types have impact on my
investment decision [0.677]
I usually React quickly to the changes of other investors' decisions and
follow their reaction to the stock market [0.671]
Other investors 'decision of the stock volume have impact on my
investment decision [0.659]
My rate of return is equal to or higher than average return rate of the market
[0.644]

INFORMATIVE FACTORS:

From the following statements the investors has to consider the changes in
the value of the stocks & consider the references of close friends and relatives, also
make a study about market fundamentals of the stocks, the information for making
stock investment, that are loaded under the informative factors shows how the
investors gets the information`s
I Consider carefully the price changes of stocks that I intend to invest
in[0.706]
I study about the Market fundamentals of underlying stocks before making
investment decision[0.686]
Market information is important for my stock investment[0.576]
I tend to treat Each element of my investment portfolio separately[0.529]
I Consider the information from my close friends and relatives as the
reliable reference for my investment decision[0.480]

SATISFACTION & FORECASTING FACTORS:

From the following statements the investors has to forecast
the changes in optimized investments in information and also satisfied with their
investment decision based on their selling, buying, choosing stocks, and deciding
the volume of the stocks, that are loaded under the satisfaction and forecasting
factors shows the investors level of satisfaction and its expectations
The

return

rate

of

my

recent

stock

investments

meets

my

expectation[0.766]
I feel satisfied with my investment decision in the last year (including
selling, buying, choosing stock ,and deciding the volumes[0.719]
I forecast the changes in stock prices in the futures based on the recent
stock prices[0.549]

POSSIBILITIES FACTOR:

From the following statements are the investors has to become more
possibilities of risk from their investment so the investors has to ignore the
connection between the different investments
After a prior loss , I become more risk averse[0.751]
I ignore the connection between different investment possibilities[0.630]

FIRM POSITION AND PERFORMANCE FACTORS:

From the following statements the investors has to analyze the firm position
before investing in stocks and performance for investment, that are loaded under the
firm position and performance factors shows given below
I analyze the companies 'customer preference before I invest in the
stock[0.779]
I believe that my skills and knowledge of stock market can I do
outperform the

market[0.711]

RISK FACTOR:
From the following statements the investors has to get become more risk from
their investment, that are loaded under the risk factor shows how the investors seeking
the risk than usual
After a prior gain, I am more risk seeking than usual[0.827]
ANALYTICAL FACTOR:
From the following variable the investors has to analyze the data`s for making
investment, that are loaded under analytical factor shows the investors using the
analysis of some stocks
I use trend analysis of some representative stocks to make
investment decisions for all stocks that I invest[0.836]

PRICE FLACTUATION FACTORS:

From the following variable`s the investors has to make decision on the basis
of changes in the value of stock and the investors have over react for buying and
selling of shares, that are loaded under the price fluctuation factors shows given below
I avoid selling shares that have decrease in value & readily sell
shares that have increased in value[0.813]
I Have
the over- reaction to price changes of stock
exchanges[0.483]
I Put the past trends of stocks under my consideration for my
investment[0.418]

STOCK PREFERENCE FACTORS:

From the following variable the investor has to give stock preference based on
the information available for investment, that are loaded under the stock preference
factors shows the local stocks have more preferable than the international stocks
I prefer to buy local stocks than international stocks because the
information of local stocks is more available[0.855]

All the factors should be concluded from the above table [3.11-3.15] that,
decision factor, informative factor, satisfaction & forecasting factors, possibilities
factors, firm position and performance factor, risk factor, analytical factor, price
fluctuation factors, stock preference factor are the nine important factors
influenced by the individual investors behavior through the investment