Impact of Change In Financial Regulations on Investment Decision Making: A Study of Investors’ Perception

Abstract

In today’s dynamic financial landscape, the relationship between investors and regulatory frameworks is of great importance. Financial regulations serve as the cornerstone of market integrity, investor protection, and financial stability. They are designed to mitigate risks, enhance transparency, and foster confidence in the financial markets. However, the response of individuals to the changes in financial regulations seems to be unclear; which will be revealed in this study. The perception and responses of investors to financial regulations have many sides, containing a range of factors such as risk tolerance, information asymmetry, and portfolio management strategies. Understanding how investors interpret and react to regulatory interventions is crucial for policymakers, regulators, and market participants