scholarly journals Factors Influencing the Investor’s Decision Making: The Moderating Role of Locus of Control

2020 ◽  
Vol 7 (12) ◽  
pp. 535-543
Author(s):  
Hafiz Waqas KAMRAN ◽  
Abthal QAISAR ◽  
Nayyer SULTANA ◽  
Muhammad Atif NAWAZ ◽  
Hafiz Tanveer AHMAD
2021 ◽  
Vol 69 (1) ◽  
pp. 49-62
Author(s):  
In‐Jo Park ◽  
Shenyang Hai ◽  
Jos Akkermans ◽  
Marijke Verbruggen

2009 ◽  
Vol 104 (2) ◽  
pp. 500-508 ◽  
Author(s):  
Wen-Bin Chiou ◽  
Ming-Hsu Chang ◽  
Chien-Lung Chen

Raghunathan and Pham conducted a pioneer study in 1999 on the motivational influences of anxiety and sadness on decision making and indicated that anxiety would motivate individuals to be risk averse, whereas sadness would motivate individuals to be risk taking. A replication study was employed in the domain of perceived travel risk. Compared to participants in a neutral mood, anxious participants showed higher perceived travel risk than sad participants. Moreover, the differential effect of anxiety and sadness on perceived travel risk was only pronounced under the high personal relevance condition, in which participants made personal decisions and expected that they would be affected by the outcomes. In general, the results extend the notion proposed by Raghunathan and Pham suggesting that travelers' implicit goals primed by anxiety or sadness used for mood-repair purposes appear to be moderated by personal relevance.


Author(s):  
Febria Nalurita ◽  
Farah Margaretha Leon ◽  
Hamdy Hady

This study aims to investigate the effect of loss aversion, regret aversion, and market factors, on investment decision making with the moderating role of locus of control. Data collection is done by distributing questionnaires. The survey was conducted on individual investors in the Indonesia Stock Exchange in Jakarta to obtain a sample of 281. This research uses the Structural Equation Modeling approach. The statistical tool used is LISREL 8.8. This study found that loss aversion, regret aversion, and market factors significantly influence investment decision making. Locus of control plays the role of moderation between loss aversion, regret aversion, market factors, and investment decision making. The novelty in this study reveals the research that needs to be done to encourage investors to make rational decisions and control the required rate of returns through their locus of control. This research helps investors to make decisions logically and rationally with an open mind, high-performance thoughts and positive actions for investment goals that produce positive returns.


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