Investment Decision Making: An Empirical Study of Perceptual View of Investors

Metamorphosis ◽  
2007 ◽  
Vol 6 (2) ◽  
pp. 115-135 ◽  
Author(s):  
Yesh Pal Davar ◽  
Suveera Gill
Keyword(s):  
Decision Making ◽  
Empirical Study ◽  
Significant Influence ◽  
Investment Decision ◽  
Demographic Factors ◽  
Human Beings ◽  
Actual Performance ◽  
Investment Decision Making ◽  
Underlying Dimension ◽  
Selection Of

There has been substantial theoretical as well as applied evidence about the explanatory facets of investor's perception and investment decision making (IDM). The study reported here investigates the underlying dimensions in the selection of different investment avenues for investors. Examination of a sample of 500 investor respondents reveals the extent to which the significant IDM variables account for variations in present and future investment in various investment avenues. The results suggest that investors' preferences are supposedly related to the actual performance of investments and the same is taken into account while forming an opinion about making future investment decision. Further, demographic factors like age and education have a significant influence on IDM process. The underlying dimension in selection of investments reveals emphasis on familiarity, opinion and demographic measures for all investment avenues. The analysis in the paper reiterates the fact that rational human beings learn from their past and present experiences and utilize the same for their future activities.

scholarly journals A STUDY ON FACTORS THAT AFFECTING THE INDIVIDUALS’ INVESTMENT DECISION MAKING IN MALAYSIA INVESTMENT BANKS

2021 ◽  
Vol 3 (6) ◽  
pp. 01-12
Author(s):  
Haniza Hashim ◽  
Nur Baiti Shafee ◽  
Shadia Suhaimi ◽  
Siti Nurul Huda Mohd ◽  
Lye Ting Ku
Keyword(s):  
Decision Making ◽  
Information Structure ◽  
Investment Decision ◽  
Demographic Factors ◽  
Investment Banks ◽  
Expected Return ◽  
Behavioural Finance ◽  
Macroeconomic Factors ◽  
Working Adults ◽  
Investment Decision Making

The research paper is aim to study about the factors that influence individuals for making their investment decision. Behavioural finance examines one of the central factors that influence investors’ decision-making. In behavioural finance, the characteristics of individual and past information structure can significantly affect decision making. Thus, this study is to examine the factors of risk and expected return, demographic factors, macroeconomic factors, and advocate recommendation. Individuals with different perceptions on investment will be likely to have their own viewpoint. Therefore, various opinion s will be getting from different types of investors in making an investment decision. This research is conducted to examine the factors that affect individuals’ investment decision-making. There is 150 number of working adults who will be selected as the target respondents in filling in the questionnaire forms that distributed by the researcher. This research is for the purpose to fill in the gap of the previous researches which have been studied before. This research has identified that risk and expected return, demographic factors, macroeconomic factors, and advocate recommendation have a significant relationship in investment decision making. This research illustrates to help other researchers for the investment decision-making process.

scholarly journals Pengaruh Faktor Demografi dan Literasi keuangan dengan Behavior Finance dalam Pengambilan Keputusan Investasi

2021 ◽  
Vol 11 (2) ◽  
pp. 237-248
Author(s):  
Elkunny Dovir Siratan ◽  
Temy Setiawan
Keyword(s):  
Decision Making ◽  
Behavioral Finance ◽  
Financial Literacy ◽  
Structural Equation ◽  
Investment Decision ◽  
Demographic Factors ◽  
Individual Investors ◽  
Portfolio Performance ◽  
Investment Decision Making ◽  
The Impact

The investment decision-making process is influenced by various factors, including financial literacy and demographic factors. This research examines the impact of demographic factors and financial literacy with behavioral finance as a mediation on investment decision making.  This research using structural equation model (SEM) analysis. The result shows that demographic factors through gender, age, education, income, occupation and experience have an influence and cause a specific behavior in investment decision making. Then the financial literacy factor has an influence in reducing negative behavior. Likewise, demographic factors and financial literacy with behavioral finance as a mediation on investment decisions have a positive influence. The existence of behavior that is manages with planning, financial literacy support, and demographic factors owned by individual investors will create an opportunity for market momentum. Which help maximize profit, better investment and portfolio performance, avoid risks, better investment decision, and forming trading strategies.

scholarly journals RATIONALITY: A CENTRAL POINT BETWEEN TRADITIONAL FINANCE AND BEHAVIOURAL FINANCE

2017 ◽  
Vol 5 (6) ◽  
pp. 389-405
Author(s):  
Subramaniam V.A. ◽  
Velnampy T.
Keyword(s):  
Decision Making ◽  
Investment Decision ◽  
Central Point ◽  
Behavioural Finance ◽  
The Real ◽  
Investment Decision Making ◽  
Real Value ◽  
Future Consumption ◽  
Value Of Money ◽  
Selection Of

Investment plays an important role not only in the life of an individual but also in the development of countries. People save money for the purpose of future consumption and invest the saved money with the objectives of protecting the real value of money and making more money. Bodie, Kane & Marcus (1998) defined the term investment as the current commitment of money and other resources with the expectation of obtaining future benefits. Investment decision making is an important aspect in the process of investment, which relates with the selection of one or more investment options for investing the money.

scholarly journals PENGARUH FAKTOR DEMOGRAFI, RISK TOLERANCE DAN OVERCONFIDENCE TERHADAP PENGAMBILAN KEPUTUSAN INVESTASI MAHASISWA DI KOTA PEKALONGAN

2021 ◽  
Vol 5 (2) ◽  
pp. 203-216
Author(s):  
Lathifatunnisa ◽  
Asri Nur Wahyuni
Keyword(s):  
Decision Making ◽  
Investment Decision ◽  
Linear Regression Analysis ◽  
Demographic Factors ◽  
Sampling Technique ◽  
Multiple Linear Regression Analysis ◽  
Risk Tolerance ◽  
Investment Decision Making ◽  
Analytical Tools ◽  
Positive Effect

The purpose of this study was to obtain empirical evidence about the influence of demographic factors, risk tolerance and overconfidence on investment decision making with the object of research being students in Pekalongan City. This study uses quantitative data by taking a sample of 100 student respondents using purposive sampling technique. The distribution of questionnaires was chosen as the data collection method in this study. Multiple linear regression analysis, classical assumption test and hypothesis testing using SPSS 25 program were used as analytical tools in this study. The results of this study indicate that demographic factors, namely age, gender and monthly income have a positive but not significant effect on investment decision making, risk tolerance has a significant positive effect on investment decisions. On the other hand, overconfidence has a positive but not significant effect on investment decision making.

Determinants of Investment Decision Making: An Empirical Study

GIS Business ◽  
2017 ◽  
Vol 12 (6) ◽  
pp. 23-33
Author(s):  
Gunjan Sharma ◽  
Tarika Singh ◽  
Suvigya Awasthi
Keyword(s):  
Decision Making ◽  
Empirical Study ◽  
Financial Market ◽  
Investment Decision ◽  
Investment Decisions ◽  
Central Position ◽  
Individual Investors ◽  
Investment Decision Making ◽  
Financial Options ◽  
Investment Behaviour

India as a developing country is becoming economically more powerful and requires huge capital for various developmental activities. In order to boost the investment among individual investors, it is necessary to study the investment behaviour of individuals and identify the factors that motivate them to invest, so that idle savings can be channelised into investment. Investment decisions are influenced by many reasons. It is a tolerable fact that the financiers are the central position in the financial market. Behaviour of investors is not fixed. It changes from position to position and from security to security. Hence, it is necessary to identify the factors which influence the investment decisions. In order to increase investment and formulate appropriate theories and policies, it is necessary to understand how individuals invest in the securities and other financial options available.

scholarly journals An Empirical Study on the Effect of Financial Autonomy and Society on Investment Decision Making

2018 ◽  
Vol 12 (01) ◽  
Author(s):  
Som Nath Paul ◽  
Manjula Jain
Keyword(s):  
Decision Making ◽  
Empirical Study ◽  
Investment Decision ◽  
Research Paper ◽  
Current Paper ◽  
Living Standard ◽  
Thought Process ◽  
Financial Autonomy ◽  
Investment Decision Making ◽  
Personal Consumption

This research paper is an explicit effort to understand the effect of financial autonomy and society on investment decision of individual. Society is a major factor which influences our living standard, thought process and objectives. It is well popular proverb that “Society makes a Man perfect”. Society has a greater influence on our decision making procedure, whether the decisions are taken for personal consumption or for investment decision. Financial autonomy has a grave importance in investment decision making. The current paper is an effort to establish the relation among the different factors, which influences the investment decision making.

scholarly journals PENGARUH LITERASI KEUANGAN DAN FAKTOR DEMOGRAFI TERHADAP PENGAMBILAN KEPUTUSAN BERINVESTASI

AKUNTABILITAS ◽  
2020 ◽  
Vol 14 (2) ◽  
pp. 253-268
Author(s):  
Asep Munawar ◽  
Suryana Suryana ◽  
Nugraha Nugraha
Keyword(s):  
Decision Making ◽  
Regression Analysis ◽  
Financial Literacy ◽  
Research Method ◽  
Investment Decision ◽  
Investment Decisions ◽  
Demographic Factors ◽  
Investment Decision Making ◽  
Analysis Technique ◽  
Attitude And Motivation

This study aims to examine the effect of financial literacy and demographic factors on investment decision making, the research method used is a survey with a quantitative approach, using a sample of 100 students on the STIE Wikara Campus. The data analysis technique used is Multiple Regression Analysis. The results showed that financial literacy has a significant effect on investment decision making, or has a significant role on formation in investment decision making, and motivation has a significant effect on decision making on investment or has a role on decision making on investment. Other findings of this study are attitude and motivation has a significant effect on investment decision making. This shows that the attitude and motivation will provide indirect experience to someone in terms of investment decision making, because at least a person or student who has financial literacy and demographic factors will tend to influence higher investment decisions than students who do not have financial literacy in investing

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