Year: 2026
Type: article
Study design: Observational Study
Abstract: Interest rates play an important role in influencing individual investment decisions by affecting the attractiveness of different investment avenues and investors’ perceptions of risk and return. This study examines the buying behaviour of individual investors in response to changes in interest rates. A descriptive research design was adopted, and primary data were collected through a structured questionnaire from 187 individual investors using convenience sampling. The collected data were analysed using Microsoft Excel. Simple Linear Regression was used to examine the influence of interest-rate changes on investor behaviour, while Pearson Correlation was used to examine their relationship. The regression results indicate a significant positive influence, with R = 0.616, R² = 0.380 and p < 0.001. Pearson Correlation also revealed a significant weak positive relationship (r = 0.246, p ≈ 0.0007). The findings indicate that changes in interest rates are significantly associated with individual investors’ investment decisions and buying behaviour.
Authors: K Harshavardana, B R Suma
Language: English
Subfield: Finance
Domain: Social Sciences
Open Access status: bronze
OpenAlex ID: W7203705456
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