Cognitive Dissonance and Market Liquidation: A Case of Pakistan Stock Exchange (PSE)

Muhammad Awais; Dr. Syed Zulfiqar Ali Shah

doi:10.33897/fujbe.v1i1.111

Muhammad Awais Foundation University Rawalpindi Campus, Pakistan
Dr. Syed Zulfiqar Ali Shah International Islamic University, Islamabad, Pakistan

DOI: https://doi.org/10.33897/fujbe.v1i1.111

Keywords: Cognitive Dissonance, Market Liquidation

Abstract

This paper aims to investigate the effect of cognitive dissonance behavior of investors on the stock returns. The study investigates that how such behavior plays a role in the liquidation of Pakistan Stock Exchange (PSE). The simple regression model was used to identify the significant impact of Cognitive dissonance on market returns. This study facilitates the investors and decision makers to make effective and efficient decisions.