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.

Past behaviour, financial literacy and investment decision-making process of individual investors

2020 ◽  
Vol 15 (6) ◽  
pp. 1243-1263 ◽  
Author(s):  
Rajdeep Kumar Raut
Keyword(s):  
Decision Making ◽  
Financial Literacy ◽  
Structural Equation ◽  
Investment Decision ◽  
Individual Investors ◽  
Successful Implementation ◽  
Snowball Sampling ◽  
Content Type ◽  
Investment Decision Making ◽  
External Variables

PurposeThis study aims to explore the importance of past behaviour and financial literacy in the investment decision-making of individual investors and examines the validity of the theory of planned behaviour in this context.Design/methodology/approachThe study used a self-administered questionnaire and adopted the convenience sampling technique followed by a snowball sampling method for the survey to collect data from the individual investors covering the four distinct states of India. Collected data were analysed on AMOS 20.0 using two-step structural equation modelling (SEM).FindingsResults indicated a significant effect of all the predictive variables. Past behaviour showed no significant direct impact on investor's intention; however, it had an indirect significant relationship while mediated by the attitude of investors. The multiple squared correlation (R2) showed that the final model could explain 36% of the variance in investors' intention towards stock investment which signified a successful implementation of the TPB model along with external variables added to it. Moreover, Indian investors were found to be highly influenced, primarily, by social pressure which could be curbed through financial literacy.Practical implicationsA significant importance of subjective norms was found on stock market participation which could be a strategic theme for the government and the policymakers to educate investors through their opinion leaders for increasing their participation. Moreover, by doing so investors could control their behaviour and take rational decisions.Originality/valueThis study extended the understandings of investor's decision-making behaviour using TPB by incorporating the two external variables viz., Financial literacy and past behaviour. The addition of past behaviour is perhaps the novelty of this article since such examination has not been conducted empirically especially in the case of developing countries like India.

scholarly journals Impact of Behavioral Factors in Making Investment Decisions and Performance: Evidence from Pakistan Stock Exchange

Market Forces ◽  
2021 ◽  
Vol 16 (1) ◽  
pp. 22
Author(s):  
Muhammad Rehan ◽  
Jahanzaib Alvi ◽  
Lubna Javed ◽  
Baber Saleem
Keyword(s):  
Decision Making ◽  
Behavioral Finance ◽  
Stock Exchange ◽  
Investment Decision ◽  
Investment Decisions ◽  
Individual Investors ◽  
Behavioral Factors ◽  
Factors Affecting ◽  
Investment Decision Making ◽  
The Impact

Market irregularities and irrational behavior triggered investor’s changes in the stock market, and this has led to an investigation into the impact of various behavioral biases and factors affecting decision-making for individual investors. The quality of individual investor behavior in making stock investment decisions is very important to be understood as a reference of the movement of the capital market. This study investigated the role of behavioral finance and investor psychology in investment decision-making at the Pakistan Stock Exchange (PSE). Using a sample of 147 individual investors, the study established that behavioral factors such as Herding, Heuristic, Market and Prospect that affected the decisions of the investors operating at the Pakistan Stock Exchange (PSE). As there are a few studies in Pakistan related to behavioral finance, so this study mainly contributes to the field of behavioral finance in Pakistan. This study focusses on existing theories of behavioral finance which led to develop the hypothesis. The result of the analysis is that the four variables have greatly influenced the investment decision and return on investment. All behavioral variables have a significant impact on the decision-making process of investors, which led to the acceptance of all assumptions regarding the level of influence of behavioral factors in decision making for individual investors

Factors influencing investor’s decision making in Pakistan

2018 ◽  
Vol 10 (1) ◽  
pp. 70-87 ◽  
Author(s):  
Muhammad Haroon Rasheed ◽  
Amir Rafique ◽  
Tayyaba Zahid ◽  
Muhammad Waqar Akhtar
Keyword(s):  
Decision Making ◽  
Locus Of Control ◽  
Structural Equation ◽  
Quantitative Research ◽  
Investment Decision ◽  
Equation Modeling ◽  
Individual Investors ◽  
Content Type ◽  
Investment Decision Making ◽  
The Impact

Purpose The purpose of this paper is to look at the impact of two most commonly used heuristics, namely, representative bias and availability bias on investment decision making and to check that either locus of control interact with the said relations through theoretical proposal and then verification through empirical evidence. Design/methodology/approach The study is a quantitative research using a survey questionnaire for its data collection. Data are collected from 227 investors operating at Islamabad, Lahore, and Sargodha in Pakistan and analyzed using structural equation modeling while the interaction effect is analyzed through simple linear regression following the rules set by Baron and Kenny (1986). Findings The results reveal that both of the heuristics under study significantly cause investors to deviate from rational decision making while the locus of control have no significant moderating effect. Originality/value The proposed model provides insight on how the behavioral factors can lead investors to suboptimal decision making. This study is first of its kind to quantify the degree of irrationality caused by these factors. The findings of this study are practically useful for individual investors, investment managers, and also for policy makers.

scholarly journals Impact of Behavioral Biases on Investment Decision Making with Moderating Role of Financial Literacy

2018 ◽  
Vol 6 (2) ◽  
pp. 34-41
Author(s):  
Rizwan Khalid ◽  
◽  
Muhammad Javed ◽  
Khurram Shahzad ◽  
◽  
...  
Keyword(s):  
Decision Making ◽  
Financial Literacy ◽  
Positive Impact ◽  
Investment Decision ◽  
Structure Questionnaire ◽  
Investment Decision Making ◽  
Overconfidence Bias ◽  
The Impact ◽  
Moderating Role

The objective of this study is to examine the Impact of Overconfidence bias and Herding bias on Investment Decision Making with Moderating Role of Financial Literacy. The population was Investor, Employee and Graduate Student. A sample of 200 was selected using convenience technique. Data were collected through structure questionnaire adopted from different papers. Correlation and Regression analysis were performed to examine the result. The Results show that overconfidence bias and herding bias have a positive impact on investment decision making and Financial Literacy has positive impact on investment decision making. Based on the results and discussions of the study findings as well as the limitations, theoretical and practical implications of the study have been provided.

scholarly journals An Analysis of Behavioral Biases in Investment Decision-Making

2019 ◽  
Vol 10 (4) ◽  
pp. 55 ◽  
Author(s):  
Geetika Madaan ◽  
Sanjeet Singh
Keyword(s):  
Decision Making ◽  
Positive Impact ◽  
Stock Exchange ◽  
Investment Decision ◽  
Investment Decisions ◽  
Individual Investors ◽  
Behavioral Biases ◽  
Investment Decision Making ◽  
Survey Responses ◽  
The Impact

Individual investor’s behavior is extensively influenced by various biases that highlighted in the growing discipline of behavior finance. Therefore, this study is also one of another effort to assess the impact of behavioral biases in investment decision-making in National Stock Exchange. A questionnaire is designed and through survey responses collected from 243 investors. The present research has applied inferential statistics and descriptive statistics. In the existing study, four behavioral biases have been reviewed namely, overconfidence, anchoring, disposition effect and herding behavior. The results show that overconfidence and herding bias have significant positive impact on investment decision. Overall results conclude that individual investors have limited knowledge and more prone towards making psychological errors. The findings of the study also indicate the existence of these four behavioral biases on individual investment decisions. This study will be helpful to financial intermediaries to advice their clients. Further, study can be elaborated to study other behavioral biases on investment decisions.

scholarly journals The The Impact of Behavioral Aspects on Investment Decision Making

2021 ◽  
Vol 10 (1) ◽  
pp. 15-27
Author(s):  
Ninditya Nareswari ◽  
Alifia Salsabila Balqista ◽  
Nugroho Priyo Negoro
Keyword(s):  
Decision Making ◽  
Structural Equation ◽  
Investment Decision ◽  
Partial Least Square ◽  
Least Square ◽  
Equation Modeling ◽  
Herd Behavior ◽  
Investment Decision Making ◽  
Behavioral Aspects ◽  
The Impact

This study aims to investigate the impact of behavioral aspects (sentiment investor, overconfidence, salience, overreaction, and herd behavior) on investment decision making. The sample contained 413 individual investors—used partial least square structural equation modeling (PLS-SEM) as a data analysis technique. The results showed that sentiment investors, overconfidence, salience, overreaction, and herd behavior positively affect investment decision making. The finding of this study has important implications for the investor to understand themselves to anticipate bias in investment decision making.

scholarly journals IMPACT OF LOCUS OF CONTROL ON INVESTMENT BEHAVIOUR: A SEGMENTATION APPROACH

2021 ◽  
Vol 9 (2) ◽  
pp. 1144-1163
Author(s):  
Fiona Sheenu Francis, Et. al.
Keyword(s):  
Decision Making ◽  
Locus Of Control ◽  
Investment Decision ◽  
Great Influence ◽  
Vital Role ◽  
Individual Investors ◽  
Investment Decision Making ◽  
Segmentation Approach ◽  
The Impact ◽  
Investment Behaviour

Investment plays a vital role in a developing country such as India, as it provides the necessary funds for undertaking productive activities to be circulated in the economy. Savings are our country's largest source of investment. Investments are subject to the individual’s attitudes, beliefs and perceptions. As a result, the attitudes and expectations of investors have a major impact on their investment behaviour. Locus of Control is one of the most important factors that affect individual’s decision-making behaviour. Locus of Control is people's assumptions about what causes their lives to have good and bad outcomes (Rotter, 1966). It is said that there is internal and external LOC. Individuals with internal LOC assume they control their own destiny, whereas individuals with external LOC relate their experiences to destiny, luck or chance. Consequently, LOC has a great influence on an individual's investment decision-making behaviour. As a result, this study attempts to assess the LOC of an individual investors, segment them based on their level of internal and external LOC, and also to understand the impact of locus of control on the savings and investment behaviour of individual investors. The study revealed that most of the investors in Kerala were moderates and the locus of control of an individual investor affected their savings and investment behaviour                       

scholarly journals Web Disclosure as Mediating Role in the Relationship Between Paradox of Choice, Investor Experience, Financial Literacy and Investment Decision Making: Evidence From China

2019 ◽  
Vol 5 (1) ◽  
pp. 83-92
Author(s):  
Noheed Khan ◽  
Khalid Latif ◽  
Nadeem Sohail ◽  
Zohaib Zahid
Keyword(s):  
Decision Making ◽  
Financial Literacy ◽  
Information Disclosure ◽  
Structural Equation ◽  
Investment Decision ◽  
Equation Model ◽  
The Novel ◽  
Mediating Role ◽  
Investment Decision Making ◽  
The Relationship

Purpose: The aims of this study to find the web disclosure as mediating role in the relationship between paradox of choice, investor experience, financial literacy and investment decision making.. Design/Methodology/Approach: Data were obtained from the 200 respondents for recent empirical investigation. The structural equation model is employed for analyzing the data. Findings: The novel findings suggest that paradox of choice, investor experience, and financial literacy have direct positive effect on investment decision making. Moreover, the findings recommend that web disclosure acts as a mediator between paradox of choice, investor experience, financial literacy and investment decision making Implications/Originality/Value:  The novel findings recommend that an important policy implication of web information disclosure for the investor.

scholarly journals Investment Behavior and Trade Returns of Individual Investor: Mediating Role if Financial Literacy

2021 ◽  
Vol 4 (1) ◽  
pp. 199-208
Author(s):  
ZAIN ULLAH ◽  
DR. SHAMS UR RAHMAN ◽  
SOHAIL KHALIL
Keyword(s):  
Behavioral Finance ◽  
Financial Literacy ◽  
Positive Impact ◽  
Investment Decision ◽  
Individual Investors ◽  
Mediating Role ◽  
Good Trade ◽  
Rational Investment ◽  
The Impact

The main objective of current study was to analyze the impact of representativeness and anchoring on the trade returns of individual investors with the mediating role of financial literacy. In this connection hypotheses were developed on the basis of behavioral finance literature. The data was collected on 5-point likert scale questionnaires which were adopted from various authors. The collected data was checked for reliability and correlation analysis and regression models were run. On the basis of results obtained from analysis the four hypotheses which were developed have been accepted. It was concluded that representativeness and anchoring has significant positive impact while the financial literacy has mediating impact on the trade returns of investors. It is recommended that more the financial literacy less risk of behavioral biases impact on investment thus investors should gain financial literacy for taking rational investment decision and good trade returns.

Impact of Equity Investment Intention Towards Behaviour: An Empirical Analysis

2021 ◽  
pp. 097226292110043
Author(s):  
Shelly Srivastava ◽  
Supriyo Roy
Keyword(s):  
Decision Making ◽  
Structural Equation ◽  
Investment Decision ◽  
Primary Data ◽  
Risk Propensity ◽  
Equity Investment ◽  
Investment Decision Making ◽  
Retail Investors ◽  
The Impact ◽  
Investment Behaviour

Investments made by investors contribute to both inflow and outflow of funds in the capital market. Investment decision making is complex due to its uncertain behaviour. In literature, there is evidence of a gap between intention and behaviour among other aspects of human behaviour like consumer buying behaviour. Therefore, this study explores the intention–behaviour gap in investment behaviour of retail investors by examining the effect of two moderators, namely risk propensity (RP) and opinion of stakeholders (OPI). The present study also focuses on identifying financial and non-financial factors influencing equity investment intention (EII) and measures its impact on equity investment behaviour (EIB). A model is, thus, conceptualized and hypotheses have been developed accordingly. For validation of the model, a set of primary data of retail investors is collected (through questionnaire framing) and the hypotheses are tested by using advanced statistical techniques, namely structural equation modelling. The outcomes of this study signify the impact of EII that catapults behavioural approach in investment decision making for any potential investor in the near future.

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