scholarly journals Factors Influencing Investment Decisions in Capital Market: a Study of Individual Investors in Nigeria

2013 ◽  
Vol 4 (1) ◽  
pp. 141-161 ◽  
Author(s):  
Tomola Marshal Obamuyi
Keyword(s):  
Influencing Factors ◽  
Capital Market ◽  
Investment Decisions ◽  
Individual Investors ◽  
Past Performance ◽  
Test Analysis ◽  
Factors Influencing ◽  
Leadership Crisis ◽  
Corporate Earnings ◽  
Post Hoc

The study seeks to determine the main factors influencing investment decisions of investors and how these factors are related to the investors’ socio-economic characteristics in the Nigerian Capital Market. The study covers individual investors using convenient sampling method to obtain information from 297 respondents through a modified questionnaire developed by Al-Tamimi (2005). Independent t- test, Analysis of variance (ANOVA) and post hoc tests were employed. The results indicate that the five most influencing factors on investment decisions of investors in Nigeria are past performance of the company’s stock, expected stock split/capital increases/bonus, dividend policy, expected corporate earnings and get-rich-quick. Also, the five least influencing factors include religions, rumors, loyalty to the company’s products/services, opinions of members of the family and expected losses in other investments. The study finds that the socio-economic characteristics of investors (age, gender, marital status and educational qualifications) statistically and significantly influenced the investment decisions of investors in Nigeria. With regard to the past performance of the company’s stock as an assessing factor, groups of investors statistically differed in factor assessment, as segments of a group considered the factor as the most important/unimportant. Since the identified most influencing factors are usually classified as wealth maximising factors, the study recommends that the investment climate and the market environment be made friendly and conducive to attract investors by creatively developing programmes and policies that impact on investors’ decisions in order to maximise the value of the firms and enhance the wealth of the investors. The market players should re-organise the market and implement accommodating policies which will eliminate fraud and resolve the leadership crisis in the market.

scholarly journals An Evaluation Of Factors Influencing Pension Managers Investment Decisions In Kenya

2011 ◽  
Vol 8 (10) ◽  
Author(s):  
Lucy Jepchoge Rono
Keyword(s):  
Decision Making ◽  
Interest Rates ◽  
Pension Fund ◽  
Investment Decisions ◽  
Legal Framework ◽  
Past Performance ◽  
Factors Affecting ◽  
Fund Managers ◽  
Factors Influencing ◽  
Retirement Funds

This study focused on the analysis of factors influencing pension fund managers investment decisions. The objectives of the study were to identify investment options available to pension fund managers, identify factors that are considered by fund managers when making investment decisions and identify challenges faced by fund managers in making investment decisions. Three representatives from each of the twelve registered fund managers completed the study questionnaire. The questionnaire was administered through the drop and pick later method. Data was analyzed using SPSS (Statistical Package for Social Sciences) and summarized using descriptive statistics such as mean, standard deviation, frequencies, percentages. The study found out that returns, investment risks and trends in interest rates were the most important factors affecting pension managers investment decisions. Decision-making preferences, investment portfolio, past performance and legal framework were rated as less important. Consistency and return maximization in the rate of returns (sustainable long term returns), prevailing economic and political situations-inflation, global markets which determines key indicators like interest rates/ exchange and risk profile of the scheme investment (risk assessment of the board of trustees) in that order are also important qualitative factors in decision making for pension fund investment. The research also found out that few investment avenues/ vehicles, bureaucracy in consultations with trustees and unpredictable/ turbulent and dynamic market situations in that order are the major challenges facing fund managers investing pension funds. The researcher identified a need for a portfolio that will give higher returns. There is also need to harmonize all regulations relating to pensions in order to create efficiency and avoid confusion. The research also recommends that RBA benchmarks with the world best in order to help the sector to achieve growth. The promotion of retirement funds and regulatory functions should be separated to avoid conflict of interest in the two roles.

scholarly journals A Study on Factors Influencing Investment Decisions of Retail Investors in VUCA World

2021 ◽  
Vol 20 (1) ◽  
pp. 69-87
Author(s):  
Gowtham Ramkumar ◽  
S Chitra
Keyword(s):  
Factor Analysis ◽  
Exploratory Factor Analysis ◽  
Investment Decision ◽  
Investment Decisions ◽  
Individual Investors ◽  
Factors Affecting ◽  
Statistical Measures ◽  
Factors Influencing ◽  
Retail Investors

In this paper, we seek to identify the factors influencing the investment decision of individual investors. Further, in the existing pandemic situation, which will cover the scope of the VUCA environment, it is important to understand the factors influencing investor’s investment decision. For this purpose, we used exploratory factor analysis to group the factors affecting an investor’s investment decision. Based on the findings, we identified four factors influencing investment preferences and the reliability of these factors are supported by strong statistical measures

scholarly journals Students’ Investment Decisions with Intention as an Intervening Variable

2021 ◽  
Vol 9 (1) ◽  
pp. 135
Author(s):  
Afaful Ummah ◽  
Muhamad Ahsan ◽  
Ahmad Anas
Keyword(s):  
Capital Market ◽  
Quantitative Research ◽  
Investment Decision ◽  
Investment Decisions ◽  
Partial Least Square ◽  
Least Square ◽  
Sampling Techniques ◽  
Factors Influencing ◽  
Training Need ◽  
Pls Method

<p><em>This quantitative research aimed to determine the factors influencing students’ decisions to invest with intention as an intervening variable using the Partial Least Square (PLS) method through the smartPLS 3.0. The population in this study was UINSA students who already had accounts in GIS UINSA. The research sample of 110 respondents was selected using purposive sampling techniques. The results showed that intention influences students’ investment decisions. Returns and technological advancements influence their investment decision through intention, both directly and indirectly.</em></p><em>Conversely, knowledge, motivation, and capital market training do not affect that, either directly or indirectly. Therefore, knowledge and Islamic capital market training need more attention. It can be done by optimizing the socialization and education about the Islamic capital market by holding seminars, training, webinar and providing facilities and tools that promote the motivation to invest in the Islamic capital market to influence the intention of students to invest.</em>

scholarly journals nvestigating the Effects of Behavioral Factors on Investment Performance in Nigerian Capital Market

2017 ◽  
Vol 7 (3) ◽  
pp. 65-82
Author(s):  
Umar Abbas Ibrahim ◽  
◽  
Fareedah Faruk Umar ◽  
Keyword(s):  
Capital Market ◽  
Survey Design ◽  
Investment Decisions ◽  
Individual Investors ◽  
Cognitive Errors ◽  
Behavioral Factors ◽  
Cross Sectional Survey ◽  
Cross Sectional ◽  
Investment Performance ◽  
Brokerage Firms

The study sought to investigate the effect of behavioral factors, including prospects on investment performance in Nigerian capital market using a cross sectional survey design was employed. A sample size of 160 staff was drawn from a population of 225 staff of active stock brokerage firms in Abuja. Data were collected by way of administered questionnaire and the analysis was done using a simple percentage and multiple regression analysis with the aid of SPSS the relationships between the behavioral factors and investment performance. The findings show that that there is a positive significant relationship between prospect factor and investment performance, It is recommended that investors should carefully consider and carry out research before making investment decisions and should not be carried away by their earlier loss for their future investment decisions. Emphasis should be made on probable cognitive errors such as representativeness, hindsight, illusion of control and availability biases and emotional biases such as regret aversion and over optimism. Also, training programs that create investor awareness in terms of the capacity to point out and protect against cognitive errors and emotional biases that lead to bad investment choices should be offered to prospective individual investors

scholarly journals Determinants of Investment Decisions on the Capital Market

e-Finanse ◽  
2018 ◽  
Vol 14 (2) ◽  
pp. 1-8
Author(s):  
Magdalena Jasiniak
Keyword(s):  
Personality Traits ◽  
Capital Market ◽  
Capital Investment ◽  
Investment Decisions ◽  
Nationwide Survey ◽  
Individual Characteristics ◽  
Unit Price ◽  
Individual Investors ◽  
Psychological Determinants ◽  
The Capital Market

AbstractThe article deals with the psychological determinants of investment decisions made by an individual investor on the capital market. The purpose of this article is to try to assess the relationship between capital involvement and selected personality traits and how individuals perceive investments in securities of different nominal unit price. The author attempts to verify whether specific price thresholds affect respondents in a similar way as prices of goods and services to customers, in the context of capital investment. The results of the nationwide survey of 564 individual investors are based on analyses using the model of the willingness to invest in shares with a specific nominal value compared to the individual characteristics of the respondents. The results of the study indicate a significant relationship between personality traits and the tendency to choose stocks with relatively low or very high denomination (current transaction price).

Znaczenie czynników behawioralnych w podejmowaniu decyzji inwestycyjnych na rynku kapitałowym

2016 ◽  
pp. 173-183
Author(s):  
Mirosław Wasilewski ◽  
Marta Juszczyk
Keyword(s):  
Capital Market ◽  
Stock Prices ◽  
Stock Price ◽  
Investment Decisions ◽  
Price Volatility ◽  
Decision Making Process ◽  
Emotional States ◽  
Psychological Conditions ◽  
History Of ◽  
Research Show

The aim of the study was to investigate the investors’ opinions concerning the usefulness of behavioral factors for investment decisions. The research was carried out in the group of 100 investors, using the services of five brokerages with a long history of operation. The results of the research show that people’s psychological conditions and sentiment in the stock market play an important role in the decision-making process of investors in the capital market. The importance of this factor increased with the length of the investment period. The emotional states of people and their psychological conditions affect the stock price volatility. However, the complexity of the determinants of stock prices makes the market value of stocks can be affected by many factors at the same time and investors seem aware of this.

scholarly journals Analysis of Medication Adherence and Its Influencing Factors in Patients with Schizophrenia in the Chinese Institutional Environment

2021 ◽  
Vol 18 (9) ◽  
pp. 4746
Author(s):  
Wei Yu ◽  
Jie Tong ◽  
Xirong Sun ◽  
Fazhan Chen ◽  
Jie Zhang ◽  
...  
Keyword(s):  
Quality Of Life ◽  
Medication Adherence ◽  
Activities Of Daily Living ◽  
Influencing Factors ◽  
Self Efficacy ◽  
Daily Living ◽  
Institutional Environment ◽  
Factors Influencing ◽  
Quality Of Life Scale

Background: Factors related to medication adherence in patients with schizophrenia have always been key to the treatment and rehabilitation of these patients. However, the treatment modes in different countries are not the same, and there is no research on the factors influencing medication adherence under different mental health service modes. Objectives: The purpose of this study was to explore medication adherence and its influencing factors in patients with schizophrenia in the Chinese institutional environment. Methods: We conducted a cross-sectional study of hospitalized persons living with schizophrenia from November 2018 to January 2019. A systematic sampling method was used to select 217 hospitalized persons living with schizophrenia. The Medication Adherence Rating Scale (MARS), Positive and Negative Syndrome Scale (PANSS), General Self-Efficacy Scale (GSES), Schizophrenia Quality of Life Scale (SQLS), and Scale of Social Skills for Psychiatric Inpatients (SSPI) were used to explore medication compliance and its influencing factors in the Chinese institutional environment. Results: The descriptive analysis and ANOVA showed that there were no significant differences in medication adherence when assessed by demographic characteristics such as sex, marital status, and education level (p > 0.05). A correlation analysis showed that there was no significant correlation between medication adherence and mental symptoms (p > 0.05) but that there was a positive correlation with self-efficacy, quality of life, and activities of daily living (p < 0.01). The linear regression analysis showed that self-efficacy, psychosocial factors, symptoms/side effects, and activities of daily living had significant effects on medication adherence (F = 30.210, p < 0.001). Conclusions: Our findings show that the self-efficacy, quality of life, and social function of patients with schizophrenia are important self-factors influencing medication adherence in the Chinese institutional environment.

Heuristic biases in investment decision-making and perceived market efficiency

2018 ◽  
Vol 10 (1) ◽  
pp. 85-110 ◽  
Author(s):  
Syed Zulfiqar Ali Shah ◽  
Maqsood Ahmad ◽  
Faisal Mahmood
Keyword(s):  
Financial Markets ◽  
Market Efficiency ◽  
Negative Impact ◽  
Investment Decisions ◽  
Sampling Technique ◽  
Investment Strategy ◽  
Individual Investors ◽  
Content Type ◽  
Specific Investment ◽  
The Relationship

Purpose This paper aims to clarify the mechanism by which heuristics influences the investment decisions of individual investors, actively trading on the Pakistan Stock Exchange (PSX), and the perceived efficiency of the market. Most studies focus on well-developed financial markets and very little is known about investors’ behaviour in less developed financial markets or emerging markets. The present study contributes to filling this gap in the literature. Design/methodology/approach Investors’ heuristic biases have been measured using a questionnaire, containing numerous items, including indicators of speculators, investment decisions and perceived market efficiency variables. The sample consists of 143 investors trading on the PSX. A convenient, purposively sampling technique was used for data collection. To examine the relationship between heuristic biases, investment decisions and perceived market efficiency, hypotheses were tested by using correlation and regression analysis. Findings The paper provides empirical insights into the relationship of heuristic biases, investment decisions and perceived market efficiency. The results suggest that heuristic biases (overconfidence, representativeness, availability and anchoring) have a markedly negative impact on investment decisions made by individual investors actively trading on the PSX and on perceived market efficiency. Research limitations/implications The primary limitation of the empirical review is the tiny size of the sample. A larger sample would have given more trustworthy results and could have empowered a more extensive scope of investigation. Practical implications The paper encourages investors to avoid relying on heuristics or their feelings when making investments. It provides awareness and understanding of heuristic biases in investment management, which could be very useful for decision makers and professionals in financial institutions, such as portfolio managers and traders in commercial banks, investment banks and mutual funds. This paper helps investors to select better investment tools and avoid repeating expensive errors, which occur due to heuristic biases. They can improve their performance by recognizing their biases and errors of judgment, to which we are all prone, resulting in a more efficient market. So, it is necessary to focus on a specific investment strategy to control “mental mistakes” by investors, due to heuristic biases. Originality/value The current study is the first of its kind, focusing on the link between heuristics, individual investment decisions and perceived market efficiency within the specific context of Pakistan.

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