FACT0R ANALYSIS

KMO and BartIett's Test

Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .547
Bartlett's Test of Sphericity Approx. Chi-Square 1.327E3
df 378
Sig. .000




Infeience:
Table 1 shows the KMO value is 0.547 which signiIies that the Iactor analysis is useIul with the data.
Sample Size take is adequate.



Infeience:
plot oI the variance that is associated with each Iactor. This plot is used to determine how many Iactors
should be kept. Typically the plot shows a distinct break between the steep slope oI the large Iactors and the
gradual trailing oI the rest (the scree).
Factor 1 to 6 can be seen distinctly spaced Irom each other hence could be kept.

CommunaIities

nitial Extraction
nvestment Knowledge 1.000 .815
frequency of investing 1.000 .846
mode of investment 1.000 .733
sell of you investment 1.000 .628
Liquidity attracts 1.000 .738
Risk Bearing capacity 1.000 .793
Stock affordability 1.000 .756
expected dividends influence 1.000 .723
expected corporate earning's
affect
1.000 .723
watching financial
statements
1.000 .792
Stock Marketability 1.000 .662
Religious reasons 1.000 .839
firm's reputation 1.000 .803
Firm's Governing Body 1.000 .853
economic indicator 1.000 .634
rely on existing shareholders 1.000 .537
affects of indices fluctuations 1.000 .696
stock prices under react to
bad news
1.000 .713
price movement indicated
future trend
1.000 .826
Friend/Co-worker's opinion 1.000 .623
majority stockholder's
opinion
1.000 .769
Broker's recommendation 1.000 .668
ease of obtaining borrowed
funds
1.000 .578
investor requires
diversification needs
1.000 .841
attractiveness of non-stock
investment
1.000 .783
get expected return 1.000 .743
reaction towards losses 1.000 .793
taxation policy 1.000 .756

1. Initially the value oI all component was same as 1.
2. s aIter applying extraction method, all Iactors having diIIerent values as shown in component
analysis.
3. So Iactor analysis can be done due to variance in all Iactors.
4. ThereIore sample size and Iactors are adequate Ior research.



TotaI Variance ExpIained
Component
nitial Eigenvalues Extraction Sums of Squared Loadings Rotation Sums of Squared Loadings
Total % of Variance Cumulative % Total % of Variance Cumulative % Total % of Variance Cumulative %
1 5.232 18.686 18.686 5.232 18.686 18.686 3.273 11.688 11.688
2 3.332 11.900 30.586 3.332 11.900 30.586 2.692 9.615 21.302
3 2.357 8.417 39.003 2.357 8.417 39.003 2.383 8.510 29.812
4 1.912 6.829 45.832 1.912 6.829 45.832 2.093 7.475 37.287
5 1.607 5.739 51.571 1.607 5.739 51.571 1.975 7.053 44.340
6 1.475 5.266 56.837 1.475 5.266 56.837 1.906 6.807 51.147
7 1.377 4.919 61.757 1.377 4.919 61.757 1.851 6.609 57.756
8 1.219 4.354 66.110 1.219 4.354 66.110 1.653 5.903 63.659
9 1.116 3.986 70.096 1.116 3.986 70.096 1.434 5.123 68.782
10 1.035 3.698 73.794 1.035 3.698 73.794 1.403 5.012 73.794
11 .959 3.424 77.219

12 .881 3.147 80.366

13 .727 2.596 82.962

14 .675 2.411 85.373

15 .590 2.108 87.482

16 .530 1.894 89.376

17 .464 1.658 91.034

18 .414 1.480 92.514

19 .381 1.361 93.875

20 .329 1.176 95.051

21 .313 1.118 96.169

22 .257 .918 97.087

23 .237 .848 97.935

24 .191 .682 98.617

25 .127 .454 99.071

26 .108 .386 99.458

27 .079 .282 99.739

28 .073 .261 100.000

Extraction Method: Principal Component Analysis.


EIGEN VALUES
igen values are those values who having value more than 1. These values give adequate result.
1. In total variance explained table, Iirst 10 Iactors having value more than 1(igen value).
2. So these Iactors are highly adequate Ior my research and contributing maximum to research.
3. These 10 Iactors contribute 73.79 oI my research.

Component Matrix
a


Component

1 2 3 4 5 6 7 8 9 10
nvestment Knowledge .113 .675 .130 -.214 -.222 -.297 .097 .367 -.050 .003
frequency of investing -.393 .660 .119 .189 .195 -.312 .046 .205 -.133 -.094
mode of investment -.031 .224 .271 .027 .695 .060 .273 .082 .195 .031
sell of you investment .462 .198 .082 .192 -.026 .036 -.509 .141 .215 .066
Liquidity attracts .675 .309 .183 .063 .074 -.136 -.166 -.091 .289 -.078
Risk Bearing capacity .079 -.306 -.691 -.267 -.030 .276 .201 -.140 .049 -.076
Stock affordability -.472 .028 .219 -.373 .168 .109 -.042 .214 .397 -.317
expected dividends
influence
-.545 -.014 .522 -.036 -.211 .215 .020 .119 .016 .216
expected corporate
earning's affect
.272 .492 -.279 .453 .256 .213 -.003 -.081 .016 .083
watching financial
statements
.066 -.130 .701 -.106 -.282 .033 -.184 -.252 .247 .172
Stock Marketability .037 -.107 .340 .070 .095 -.013 .611 -.065 .376 .020
Religious reasons .788 -.186 .259 .098 .085 -.238 .128 -.149 -.004 -.054
firm's reputation -.630 .115 -.318 .090 .136 .294 -.027 -.039 .312 .279
Firm's Governing Body -.827 .114 -.265 .133 .023 .112 -.064 .000 .188 .124
economic indicator .354 .090 .098 -.610 .072 .153 .148 .254 .033 .056
rely on existing
shareholders
.468 .171 .025 -.250 .078 .413 .119 .128 -.103 -.082
affects of indices
fluctuations
.316 .492 .186 -.144 -.139 .386 -.025 -.188 -.306 -.027
stock prices under react
to bad news
.207 .509 -.236 .325 -.066 -.264 .115 -.282 .240 -.160
price movement
indicated future trend
.408 .003 -.364 -.313 -.056 -.284 -.132 .240 .205 .478
Friend/Co-worker's
opinion
.642 -.117 -.265 .082 -.055 .121 .136 .143 .254 .005
majority stockholder's
opinion
.383 -.285 -.058 .316 .184 .096 .124 .578 -.206 -.059
Broker's recommendation .494 -.521 -.035 .071 -.197 -.055 .227 -.109 .100 -.178
ease of obtaining
borrowed funds
.504 -.014 .011 .064 .405 .112 -.364 -.019 -.009 .099
investor requires
diversification needs
.106 .512 .158 .332 -.303 .553 .084 .025 .037 -.161
attractiveness of non-
stock investment
.162 -.456 .063 .365 -.279 .202 -.253 .377 .253 -.150
get expected return .576 .369 -.030 -.162 -.087 .171 .157 -.129 .003 .412
reaction towards losses .047 -.513 .344 .058 .538 .136 -.171 -.167 -.168 .118
taxation policy -.076 -.237 .190 .523 -.178 -.046 .351 .151 -.132 .433
Extraction Method: Principal Component Analysis.

a. 10 components extracted.




#otated Component Matrix
a


Component

1 2 3 4 5 6 7 8 9 10
nvestment Knowledge .131 .068 .573 .366 .007 .565 .053 -.080 -.041 -.028
frequency of investing -.194 -.030 .806 -.168 -.196 .221 .080 -.155 .095 -.049
mode of investment -.105 .144 .343 .145 -.162 -.319 .031 -.102 .639 -.122
sell of you investment .115 .696 .087 .063 .125 .022 .081 .242 -.193 -.026
Liquidity attracts .435 .685 .056 .105 .073 .131 .103 -.050 .139 -.104
Risk Bearing capacity -.145 -.163 -.718 .170 -.414 .060 -.068 -.075 -.085 -.095
Stock affordability -.331 -.214 .161 .079 .206 -.001 -.082 .128 .257 -.661
expected dividends
influence
-.360 -.367 .265 .014 .580 -.085 .132 .119 .082 .079
expected corporate
earning's affect
-.138 .531 .085 -.057 -.440 .032 .387 -.099 .094 .220
watching financial
statements
.168 .104 -.022 -.014 .854 -.097 .057 -.032 .090 -.006
Stock Marketability .117 -.124 -.087 .011 .175 .059 .002 .010 .763 .094
Religious reasons .785 .332 -.144 .063 .028 -.114 -.045 .007 .214 .162
firm's reputation -.872 -.019 -.075 -.122 -.052 -.002 -.023 -.078 .112 .001
Firm's Governing Body -.826 -.212 .094 -.314 -.027 .086 -.068 -.049 -.001 -.057
economic indicator .177 -.004 -.034 .742 .035 .018 -.019 -.026 .087 -.202
rely on existing
shareholders
.203 .119 -.109 .539 -.142 -.067 .377 .040 .037 -.093
affects of indices
fluctuations
.170 .127 .095 .328 .075 .024 .646 -.277 -.182 .018
stock prices under react
to bad news
.104 .411 .050 -.312 -.245 .491 .155 -.280 .168 .030
price movement
indicated future trend
.013 .392 -.149 .485 -.072 .242 -.539 -.021 -.171 .177
Friend/Co-worker's
opinion
.260 .371 -.418 .249 -.224 .162 .012 .268 .140 .115
majority stockholder's
opinion
.270 .029 .039 .169 -.397 -.208 -.005 .632 .064 .246
Broker's recommendation .633 -.015 -.544 -.060 .005 .030 -.088 .219 .137 .095
ease of obtaining
borrowed funds
.184 .566 -.026 .157 -.128 -.416 .012 .037 -.084 -.022
investor requires
diversification needs
-.110 .162 .078 .019 .071 .265 .829 .156 .068 .071
attractiveness of non-
stock investment
.054 .141 -.255 -.167 .173 -.014 .014 .794 -.083 .016
get expected return .149 .387 -.124 .529 .025 .157 .224 -.301 .047 .328
reaction towards losses .125 .011 -.055 -.075 .117 -.854 -.113 .031 .108 .028
taxation policy -.021 -.186 .065 -.159 .123 -.031 -.028 .266 .217 .746
Extraction Method: Principal Component Analysis.
Rotation Method: Varimax with Kaiser Normalization.

a. Rotation converged in 21 iterations.



BATA BEB0CTI0N
ata deduction is basically used during data analysis so that a common result can be interoperated Irom
sample population.
Component
Broker`s recommendation and Religious reasons have values .633 & .785, so they are going to make one common
Iactor. This shows that people are superstitious and do not always Iollow broker`s recommendation. They have
many religious issues when it comes to stock market and have diIIerent perception and believe to their Broker`s
recommendation.
Component
Sell oI your investment Iactor and Liquidity Iactor have values .696 & .685 thereIore are clubbed to
make a common Iactor. It determines iI one needs to money right away or should have money in hand
(liquidity) one will sell oI their investment.
Component
Frequency oI investing and Investment knowledge are both are going to Iorm a common Iactor which
signiIies that Irequency oI investment is based on investment knowledge, people invest more Irequently
when they have sound knowledge regarding investment.
Component
conomic Indicator and Get expected return Iactor are combined to Iorm a common Iactor which tells us
that when economic indicator like inIlation etc. are regulated people usually get expected return.
Component
xpected dividend inIluence and watching Iinancial statement with values .580 & .854 are clubbed to
Iorm as known as soundness oI a Iirm, it will help us to know Iinancial position oI a Iirm and will let us
decide whether the stock price oI the Iirm will rise or Iall and whether the shareholder will be given
some bonus like dividend oI not.
Component
In component 6 investment knowledge alone is a signiIicant Iactor.
Component
IIect oI indices Iluctuations and investor require diversiIication needs are making one signiIicant Iactor
which indicates that due to large Iluctuation in various stock market indices a investor requires
diversiIication needs utmost to cover his risk thereIore, investor must ensure that his portIolio is well
diversiIied
Component 8
Majority stockholder opinions and attractiveness oI non -stock investment with values .632 & .794
respectively makes a common Iactor, it signiIy that most oI the investor are IearIul while investing and
are risk averse in nature so either they go Ior stocks recommended by majority stockholder or make
investment in non-stock investment instruments.
Component 9
Mode oI investment and stock marketability with values .639 & .763 together Iorm common Iactor with
signiIies that due to stock marketability mode oI investment is decided, iI stock marketability is high
then stock can be kept Ior short term else are held Ior long term.
Component
In component 10 taxation policy with value .746 alone is a signiIicant Iactor which inIluences investor`s
decision.