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A Study on Investor Buying Behavior in Response to Interest Rate Changes
Subject area: Management and Commerce · Area of research: Finances
DOI: https://doi.org/10.64388/IREV10I2-1722397
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.
How to cite this paper
@article{1722397,
author = {Harshavardana K, Suma B R},
title = {A Study on Investor Buying Behavior in Response to Interest Rate Changes},
journal = {Iconic Research And Engineering Journals},
year = {2026},
volume = {10},
number = {2},
pages = {1936-1940},
issn = {2456-8880},
url = {https://www.irejournals.com/formatedpaper/1722397.pdf},
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.},
month = {August},
doi = {https://doi.org/10.64388/IREV10I2-1722397}
}