Investors’ Confidence Index (IC Index) as an Investment Determinant in Dhaka Stock Exchange

Investors' psychology, sentiment, attitude towards risk, degree of risk tolerance or aversion and other risk characteristics largely influence the investment decision which is empirically observed by Deck et al. (2008). Lashgari (2000), Dennis and Mayhew (2002), Suk and Tully (2003), and Wurgler (2006) have used general and risk characteristics of investors to developed models on confidence index on stock markets. This study, in line with those efforts, tries to measure the individual investors' level of confidence on the Dhaka Stock Exchange (DSE) of Bangladesh as a determinant of investment. The Investor Confidence Index indicates a large portion of these individual investors have low confidence on the stock market of Bangladesh with none found to be positive in favor of a better immediate future