Factors Influencing Stock Market Investment Intentions of Retail Investors

A Behavioural Perspective

Authors

DOI:

https://doi.org/10.32674/7xk08t89

Keywords:

Behavioural finance, financial protection, investment intention, retail investors

Abstract

This study aims to examine factors influencing the investment intention of retail investors of the Nepalese stock market from a behavioural perspective. An explanatory research design was employed, using purposive sampling to collect data from 402 retail investors in Surkhet District, which were subsequently analyzed using PLS-SEM. The findings of this study revealed that attitude, subjective norms, perceived behaviour control, and risk tolerance have a significant influence on the investment intention of the retail investors of the stock market. Further, investment intention has a significant influence on the investment behaviour of retail investors. Mediation analysis also validates that investment intention significantly mediates the relationship between behavioural factors and investment behaviour. Policymakers, financial institutions, and market regulators can use these insights to design effective financial literacy programs and strengthen regulatory frameworks that promote balanced investment strategies.

Author Biographies

  • Purna Man Shrestha, Graduate School of Management, Mid-West University, Nepal

    Purna Man Shrestha, PhD, is an Associate Professor and Dean of the Graduate School of Management at Mid-West University, Surkhet, Nepal. He received his PhD from Mid-West University in 2022. His research interests include capital markets, service quality, financial performance, capital structure, investment decisions, and financial literacy, and he has published over 3 dozen research articles in national and international journals.

  • Mahesh Rana, Surkhet Multiple Campus, Tribhuvan University, Nepal

    Mahesh Rana is a Lecturer in the Department of Management at Surkhet Multiple Campus, Tribhuvan University, Nepal. He holds an M.Phil. in Management from Mid-West University. His research interests include corporate finance, behavioural finance, investment analysis, financial markets, and financial literacy. He has published research articles in peer-reviewed journals and presented his research at various national and international conferences.

Downloads

Published

2026-06-30

Issue

Vol. 5 No. 1 (2026): Journal of Innovation in Academia

Section

Research Articles

License

Copyright (c) 2026 Journal of Innovation in Academia

Creative Commons License

This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

Upon publication articles are immediately and freely available to anyone, anywhere, at any time. All published articles are licensed under a Creative Commons Attribution-NonCommercial-NoDerivs 4.0 Unported License. All articles are permanently available online. The final version of articles may be posted to an institutional repository or to the author's own website as long as the article includes a link back to the original article posted on OJED.

How to Cite

Factors Influencing Stock Market Investment Intentions of Retail Investors: A Behavioural Perspective. (2026). Journal of Innovation in Academia , 5(1), 166-190. https://doi.org/10.32674/7xk08t89