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Abstract
This study examines the determinants of individual investors' intention to participate in the
Nepalese stock market by extending the Theory of Planned Behaviour (TPB) with financial
literacy and past behaviour bias. The primary objective is to analyse how attitude, subjective
norms, perceived behavioural control, financial literacy, and past behaviour bias influence
investment intention. A descriptive and causal research design was employed using survey data
collected from 391 experienced investors selected through convenience sampling. Data were
analysed using SPSS and SmartPLS, incorporating descriptive statistics, correlation analysis,
multiple regression, and structural equation modelling. The findings reveal that all TPB
constructs — attitude, subjective norms, and perceived behavioural control — significantly
and positively influence investment intention, with perceived behavioural control emerging as
the strongest predictor (β = 0.348). Financial literacy (β = 0.183) and past behaviour bias (β
= 0.104) also show positive but comparatively weaker effects. The extended model explains
43.7 percent of the variance in investment intention (R² = 0.437, F = 59.647, p < 0.001). The
study concludes that investment intention in Nepal is driven primarily by psychological and
social factors, while financial literacy and past behaviour serve as supporting influences, and
offers implications for policymakers, financial institutions, and investment educators.
Keywords: Investment intention, financial literacy, past behaviour bias, attitude, subjective
norms, Theory of Planned Behaviour, Nepal.
