Impact of News Disclosed by Media, Analysts and Markets on Investment

Behavior in Pakistan

TOPIC :

Introduction:

• Media is playing a vital role to promote information in a huge population as well as to the individual investor.

• News which is professionally edited and known as news stories can change Stock prices.

CONT..

• Good news and False news equally disturbed the stock prices. Bad news has created more fluctuation in stock then good news.

• Investors in Pakistan preferred to invest after analyzing the current situations and political circumstances of a country.

Pakistani media

Pakistani media

LITERATURE REVIEW:

• News disclosed by Media and its impact on Investment

• Media has also showed the economic conditions and the development of the country which influenced the investor’s decision making.

LITERATURE REVIEW:

• News disclosed by media has fluctuated prices of stocks in long run as well as in short run.

• However news disclosed by media is not just positively affect the market but sometimes has very strong negative impact.

LITERATURE REVIEW:

News disclosed by Markets and its impact on Investment:

• Investor has more believed in market disclosure because they think that managers have more accurate information than analysts and other sources

LITERATURE REVIEW:

• It is very important for an investor to analysis the nature of news by comparing the present news with the last information disclosed by the market

Cont..

News disclosed by Analysts and its impact on investment:

• Analysts are considered to be one of the most important sources of information in capital market.

Still cont..

• Analyst sometimes show biased behavior and communicate more positive information rather evaluate the facts

• They spend most of their time in the markets and remain up to date with every niche of the trading.

Simple Example..

Methodology:

• The research was conducted through questionnaires which were distributed in Islamabad Stock Exchange.

Results:

• First objective of the study was to identify the relationship between news disclosed by media, market and analysts on investment making behavior.

• And secondly relationship of financial literacy as a moderator between news and investment.

Conclusion:

• Pakistan is a collectivist society and people react differently in this domain.

• Analysts are more trust worthy because people in Pakistan believe more on humans than market or media.

References:

• Ali, A.Rahman & Bakar Financial Satisfaction and the Influence of Financial Literacy in Malaysia.

• tribune.com.pk/.../incoming-funds-huge-indian-investment-in-pakistans-...

• www.state.gov › ... › Investment Climate Statements 2012

• www.unicef.org/pakistan/media_2875.htm•