Determinants of Governance Parameters Towards Investor’s Performance in Perspective of Regulatory and Legal Framework

Global Business Review ◽

10.1177/0972150919875378 ◽

2020 ◽

pp. 097215091987537

Author(s):

Jiban Kumar Parida ◽

Vishal Vyas

Keyword(s):

Factor Analysis ◽

Good Governance ◽

Causal Effect ◽

Investment Decision ◽

Legal Framework ◽

Governance System ◽

Related Factors ◽

Investment Decision Making ◽

Governance Index ◽

Investment Experience

The study aims to extract the main determinants of governance index in relation to regulatory and legal framework, which influence the performance of investors in larger way. The driver of governance factors has been studied and tested empirically by using factor analysis method (Exploratory Factor Analysis). To achieve this, Quantitative data have been collected by distributing questionnaire to a suitable sample size of 317 respondents who have at least 3 years of investment experience in Indian stock market and data collection period was over last 6 month of 2017. For preparing the questionnaire, the study considers the corporate governance index scale by Standard & Poor’s agency which was worldwide accepted. The study provides a useful direction to retail investors, investment professionals/planners and companies regarding the knowledge about governance-related factors that are specific to the causal effect between mentioned governance construct and market returns. Further it implies that good governance system helps investors during their investment decision-making process particularly in emerging markets for getting higher return, money protection and deterrence from fraudulent market activities.

Download Full-text

Investment Decisions Of Investors Based On Generation Groups

Coopetition : Jurnal Ilmiah Manajemen ◽

10.32670/coopetition.v11i3.136 ◽

2020 ◽

Vol 11 (3) ◽

pp. 189-196

Author(s):

Mochammad Rizaldy Insan Baihaqqy ◽

Sugiyanto

Keyword(s):

Financial Literacy ◽

Stock Exchange ◽

Investment Decision ◽

Investment Decisions ◽

Gen Y ◽

Investment Decision Making ◽

Investment Experience ◽

Quantitative Descriptive ◽

Gen X ◽

Exchange Data

This study aims to describe the effect of financial literacy in each generation group (Gen Z, Gen Y, Gen X, and Baby Boomers) in investment decision making. The method used in this research is quantitative descriptive. Respondents in this study were 137 investors who were members of the Indonesia Stock Exchange. Data collection was conducted in January 2020-February 2020. The results showed that the differences in financial literacy of each generation group had a significant influence on investment decisions. financial literacy and Investment experience is needed in the capital market in making investment decisions.

Download Full-text

Investors’ Structure and Investment Decision Making Factors: Evidence from Capital Market in Bangladesh

Accounting and Finance Research ◽

10.5430/afr.v9n1p67 ◽

2020 ◽

Vol 9 (1) ◽

pp. 67

Author(s):

Md. Hafizur Rahman Khan ◽

Mohammad Saiful Islam

Keyword(s):

Decision Making ◽

Factor Analysis ◽

Interest Rate ◽

Capital Market ◽

Investment Decision ◽

Descriptive Statistics ◽

Policy Makers ◽

Investment Decision Making ◽

Decision Making Factors ◽

Structured Questionnaire

The purpose of the paper is to identify the investors’ structure and vital investment decision making factors in the context of capital market in Bangladesh. Total 104 investors have been surveyed in the study with close ended and structured questionnaire. Descriptive statistics and factor analysis have been conducted to analyze the collected data. The results of the study reveal that policy adoption of government together with fundamental analysis and deposit interest rate as alternative of return from share market for investors are vital investment decision making factors of investors of capital market in Bangladesh. The paper is significant for the investors for proper investment decision making and policy makers to work with development of capital market in Bangladesh.

Download Full-text

Impact of Financial Knowledge and Investment Experience on Investment Decision Making with and without Risk Tolerance Mediation

Enterprise Risk Management ◽

10.5296/erm.v6i1.16930 ◽

2020 ◽

Vol 6 (1) ◽

pp. 1

Author(s):

Muhammad Aslam ◽

Muhammad Faisal Gulzar ◽

Muhammad Aamir Shahzad ◽

Muarif Maqbool ◽

Muhammad Hassan Chaudhary

Keyword(s):

Decision Making ◽

Financial Risk ◽

Statistical Tests ◽

Investment Decision ◽

Risk Tolerance ◽

Financial Knowledge ◽

Investment Decision Making ◽

Investment Experience ◽

The Impact ◽

Financial Risk Tolerance

This research will explore the relationship between financial knowledge, investment experience, and investment decision making. The primary dataset was obtained from the investors in Pakistan stock exchange located in the city of Lahore, Punjab, Pakistan. The random sampling technique was used for the respondent selection. The comprehensive questionnaire contains the nominal, ordinal categorical scales for a survey response. The normality & reliability of the data were further verified by the statistical tests. The results estimated using the multiple regression analysis will be revealed in this study. This research will study the impact of the financial knowledge on investment decision making with and without the financial risk tolerance. Financial risk tolerance plays a mediating role during the process.

Download Full-text

The Role of Behavioural Factors in the Investment Decisions of Household Investors

International Journal of Accounting and Financial Reporting ◽

10.5296/ijafr.v7i1.11421 ◽

2017 ◽

Vol 7 (1) ◽

pp. 392

Author(s):

Arumugam Subramaniam ◽

Thirunavukkarasu Velnampy

Keyword(s):

Factor Analysis ◽

Sri Lanka ◽

Investment Decision ◽

Investment Decisions ◽

Northern Province ◽

Behavioural Finance ◽

Investment Decision Making ◽

Behavioural Factors ◽

Investment Process ◽

Analytical Tools

The process of investment requires investors to take various types of decisions and the quality of those decisions determines the outcomes of the investment process. Standard finance theories and behavioural finance theories present different views on investment decision making based on the concept of rationality. Behavioural finance theories indicate that investors fail to perform in a completely rational manner when making investment decisions due to various biases. The objective of the study is to identify the behavioural finance based factors influence the investment decisions of household investors in the Northern Province of Sri Lanka. The necessary data for the study were collected from 1810 household investors in the Northern Province of Sri Lanka and the sample respondents were selected under Proportionate stratified random sampling method. The analytical tools of exploratory factor analysis and confirmatory factor analysis were used to analyze the data. The current study concluded that Representativeness bias, Overconfidence bias, Availability Bias, Loss Aversion bias, Regret Aversion bias and Herding influence the investment decisions of household investors.

Download Full-text

INVESTMENT DECISION MAKING USING A COMBINED FACTOR ANALYSIS AND ENTROPY-BASED TOPSIS MODEL

Journal of Business Economics and Management ◽

10.3846/16111699.2011.633098 ◽

2013 ◽

Vol 14 (3) ◽

pp. 448-466 ◽

Cited By ~ 23

Author(s):

Li-Chang Hsu

Keyword(s):

Factor Analysis ◽

Financial Performance ◽

Evaluation Model ◽

Investment Decision ◽

Evaluation Criteria ◽

Entropy Weight ◽

Investment Decision Making ◽

Significant Difference ◽

Before And After ◽

Topsis Technique

Traditionally, the return on assets and the return on equity are used as the criteria in the evaluation of financial performance, while risk considerations are ignored. Therefore, this study combined financial ratio variables and the RAROC (risk-adjusted rate of return on capital) as the evaluation criteria and developed a financial performance evaluation model. The proposed evaluation model combines factor analysis with entropy weight and the TOPSIS (technique for order performance by similarity to ideal solution) to evaluate the financial performance of Taiwan's 50 listed opto-electronic companies. Finally, Spearman's and Kendall's rank correlations are used to verify that there is no significant difference between the 2007 and 2008 rankings of the companies. The empirical results show the financial performance rankings of the companies before and after the global financial turmoil. These findings not only help investors making investment decisions, but also can help managers make decisions to improve their company's financial performance.

Download Full-text