A Comparative Study of Investment Behavior of Retail Investors in Türkiye and Pakistan

Abstract The purpose of this study is to investigate and compare the investment behavior of retail investors in Türkiye and Pakistan with an online survey data. Independent sample t-test is used to investigate the difference of Financial Literacy, Investors’ Confidence, Risk Tolerance, Investment Philosophy, and Investment Experience and Investment choices across countries. The findings show that there are some key differences in the behavior of retail investors in Türkiye and Pakistan. Furthermore, Path Analysis reveals that all five variables under the study i.e., Financial Literacy, Risk tolerance, Investment Philosophy, Experience and Self Confidence proved to be good predictors of Investment Choices in both countries. The study is among the pioneer ones as very scanty literature is available on collective relationship of Financial Literacy, Investors’ Confidence, Risk Tolerance, Investment Philosophy, and Investment Experience on Investment choices and how their combined effect reflects on investment behavior. Keywords: Investment behavior; investment choices; financial literacy; investment philosophy; path analysis.