Lead researchers:
Kazi Iqbal, Bangladesh Institute of Development Studies (BIDS)
Asad Islam, Monash University, Australia
Partners: Monash University, Australia
Timeline: January 2015 to December 2016
Status: Complete
Method: Quantitative
The overview of the project:
Improving financial literacy of the small investors is central to the development of a viable financial sector. In this study, we train investors on capital market and examine how such training change the trading behavior of the investors. We collaborate with seven brokerage houses in Dhaka to train the small investors. The professional trainers provide training on the fundamentals of stock valuation. We primarily focus on ‘rule of thumb’ method considering a large number of small investors do not have sufficient accounting knowledge. We conduct the lab-in-the-field experiment to examine how these real small investors’ behaviour in stock trading are affected by their attitudes towards uncertainty, risk-taking behaviour and personality traits.