scholarly journals An Exploratory Study to Identify the Critical Factors Affecting the Individual Investment Decision-Making

2019 ◽  
Vol 6 (2) ◽  
pp. 1
Author(s):  
Ritu Gautam ◽  
Umesh Holani
Keyword(s):  
Decision Making ◽  
Exploratory Study ◽  
Investment Decision ◽  
Critical Factors ◽  
Factors Affecting ◽  
Investment Decision Making ◽  
The Individual

scholarly journals Influence of Behavioural Biases on Investment Decision Making in Bhubaneswar Region

2019 ◽  
Vol 8 (3) ◽  
pp. 8297-8301
Keyword(s):  
Decision Making ◽  
Investment Decision ◽  
Descriptive Analysis ◽  
Sampling Technique ◽  
Primary Data ◽  
Behavioural Finance ◽  
Investment Decision Making ◽  
Retail Investors ◽  
The Individual ◽  
The Impact

Behavioural Finance has gained a lot more importance in recent era. In the fast moving world where the standard finance fails to explain the irrational behavior of the investors, behavioural finance tries to identify the cause for such behavior which otherwise called as behavioural anomalies. The purpose of this research paper is to identify such anomalies and also to examine whether the behavioural biases has any influence in the investment decision making by the retail investors. This paper also put an emphasis to find out which among the different biases has the most and least influence on the individual investment decision making process. This study has used primary data for knowing the impact of factors such as gender, age, occupation, income, sector preference, and instruments preferred for investments, source of information, intention behind investment and consideration before investment. Descriptive analysis has been done to check the impact of these factors along with correlation and other. The sampling technique used here is non-probabilistic convenience sampling. The data has been collected through structured questionnaire based on five point Likert scale from the retail investors of Bhubaneswar region. This research shall interest the company, policy makers and the issuers of securities about the interest and preferences of individuals before issuing securities in the market.

scholarly journals Factors Affecting Investment Decision Making: Moderating Role of Investors Characteristics

2019 ◽  
pp. 1311-1320
Author(s):  
Salam A. Alshamy
Keyword(s):  
Decision Making ◽  
Corporate Governance ◽  
Investment Decision ◽  
Financial Education ◽  
Financial Information ◽  
Factors Affecting ◽  
Investment Decision Making ◽  
Relationship Of ◽  
The Relationship

The current study aimed to investigate the factors affecting investment decision making. Moreover, the moderating effects of age, gender, and financial information were also tested. The study utilized a quantitative research design for that the data was collected using a structured questionnaire. The questionnaire was sent to 570 individuals out of that 374 questionnaires were returned however 372 of the questionnaires were found to be useable. The study framework had 6 constructs namely heuristics, financial information, corporate governance, risk aversion, and experience were independent variables while investment decision making was dependent variable while age, gender and financial education were moderating variables. All the latent construct were measured using multi items based on 5 point Likert scales from 1 strongly disagree to 5 strongly disagree. The results found the Heuristics, Risk Aversion, Financial Information, Corporate Governance and Experience to be significant factors affecting the investment decision making. Moreover, the moderating effect of gender was found to be significant in the relationship of (financial information, corporate governance, and experience) and investment decision making. The moderating effect of age was found to be significant in the relationship of (Heuristics, Corporate Governance, and Experience) and investment decision making while the moderating role of financial education was found to be significant in the relationship of (financial information, corporte governance and experience) and investment decision making.

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

scholarly journals PSYCHOLOGICAL FACTORS AND INVESTMENT DECISIONS IN THE NIGERIA CAPITAL MARKET

2021 ◽  
Vol 6 (1) ◽  
pp. 33-41
Author(s):  
Esther Ikavbo Evbayiro-Osagie ◽  
Michael Ify Chijuka
Keyword(s):  
Decision Making ◽  
Stock Market ◽  
Capital Market ◽  
Psychological Factors ◽  
Investment Decision ◽  
Investment Decisions ◽  
Factors Affecting ◽  
Availability Bias ◽  
Investment Decision Making ◽  
Behavioral Influences

This study examines Behavioral Factors and Investment Decision Making in the Nigerian Stock Exchange (NSE). Thus, the research question is what are the psychological factors affecting investment decisions in the Nigerian capital market. A structured questionnaire was used in collecting data and it was able to collect data from 75 investors with the application of a convenient sampling method. Using overconfidence bias, availability bias, conservatism, and herding effect to define the most important behavioral element affecting investment decision making by investors in the Nigerian. Multiple regression analysis was used as the key methodological method for evaluating the research hypothesis, whereas the internal consistency of the questionnaire calculated from Cronbach's alpha on all variables showed values greater than 0.7 with a sufficient level of reliability. The primary beneficiary group would be the buyers on the stock market who would be educated enough about the effect of their own behavioral influences on their stock market decision making. The knowledge would be useful in making optimal investment decisions and avoiding unfavorable decisions to increase their resources. In turn, it will be helpful to policymakers and stock market regulators to help them understand the position of behavioral influences inherited in consumer decision-making and that may be associated with the need for stock market brokers to update their customer's trading practices to a higher level. The findings of this study suggest that overconfidence, availability bias, and herding impact demonstrated a positive significant relationship with NSE investment decision-making except conservatism which showed a negative relationship with investment decision-making but at 0.01 levels statistically significant. On the basis of the results, it can be generalized that the most prevalent factors affecting investor investment decision taking in NSE are overconfidence, availability bias, and herding influence.

scholarly journals UNCERTAINTY AVOIDANCE, RISK AVOIDANCE AND PERCEIVED RISK: A CULTURAL PERSPECTIVE OF INDIVIDUAL INVESTORS

2019 ◽  
Vol 3 (1) ◽  
pp. 21
Author(s):  
Imran Arshad ◽  
Yusnidah Ibrahim
Keyword(s):  
Decision Making ◽  
Perceived Risk ◽  
Investment Decision ◽  
Uncertainty Avoidance ◽  
Individual Investors ◽  
Risk Avoidance ◽  
Investment Decision Making ◽  
The Individual ◽  
Investment Intentions ◽  
The Impact

Risk serves as an important aspect that can change the decision making of individuals, especially if it is related to investment decision making. The effects of risk on investment decision making have been extensively discussed in the literature but little of it assessed the dominance of various risk-related factors in investment decision making by individuals. In order to make up for this lack,  this research studies the impact of risk avoidance,  uncertainty avoidance and perceived risk on the investment intentions of individual investors in Pakistan and relate it to Hofstede’s cultural dimension. The data was collected from individual investors and after screening, a sample of 548 was found useable for further analysis. Using SEM-PLS, it was found that risk avoidance and uncertainty avoidance significantly influence the investment intention of individual investors. On the other hand perceived risk does not influence the investment intentions of individual investors. In the evaluation of dominating factors, it was found that   risk avoidance is the most significant and the strongest factor that influences the individual investors’ investment intentions. This paper suggests that investment managers should work on strategies to change the risk avoidance behaviour of investors. Moreover, findings suggest that the cultural aspect is more important, and the level of risk avoidance should be kept in mind while offering stocks in the market. The Security Exchange Commission of Pakistan can prepare risk-adjusted products to enhance the level of intentions among the individual investors in Pakistan.

scholarly journals Positive Emotions and Investment Decisions: A Conceptual Exploration

2019 ◽  
Vol 15 (01) ◽  
Author(s):  
Sushila . ◽  
Anindita Chakraborty
Keyword(s):  
Decision Making ◽  
Positive Emotion ◽  
Positive Emotions ◽  
Investment Decision ◽  
Investment Decisions ◽  
Financial Decisions ◽  
Emotional Factors ◽  
Investment Decision Making ◽  
Financial Decision ◽  
The Individual

Investment decision making is a crucial step to be taken by every individual on a regular basis, whether it's short term or long term, for consumption or for saving purposes but require the least bit of knowledge about financial terms. On the other hand, there are many factors which directly or indirectly affect our decision making and emotional factors are one of them. Emotions can be used as accurate appraisal and expression of internal feelings to motivate, better planning, consistent practices and achieve the financial goals. Emotions not only affect our mental ability, but also the physical activities which defines the overall personality of the individual, emotions can be of different types, but we mostly know positive and negative which is the reflection of our beliefs and values and result into our decision.This paper will start with the explanation of investment decision making and how investment decisions can change with the effect of positive emotion. Based on the literature, it was found that positive emotions are positively related to the investment decision making and person with positive emotion and attitude take wise and better financial decision. With the calm mind and positive emotions people can think better and it reflected in their financial decisions.

Research on Countermeasures for Investment Estimate Precision of Power Distribution Grid Project in Inner Mongolia

2013 ◽  
Vol 448-453 ◽  
pp. 2673-2680
Author(s):  
Gui Ting Zhao ◽  
Bao Feng Yang ◽  
Hong Bo Zhang ◽  
Hui Juan Lu
Keyword(s):  
Decision Making ◽  
Power Distribution ◽  
Inner Mongolia ◽  
Investment Decision ◽  
Rapid Development ◽  
Economic Effect ◽  
Distribution Grid ◽  
Factors Affecting ◽  
Investment Decision Making ◽  
Estimate Precision

Given the characteristics of power distribution grid project including the huge amount of investment, long construction period, long investment payback period and so on, the precision of investment estimate has a tremendous influence on decision making, economic effect and cost control in each stage. By way of introducing the current situation of investment estimate of power distribution grid project, and analyzing the key factors affecting the investment estimate precision including investment decision-making and management, project design plans, risk and the investment estimate preparation, this paper puts forward improvement strategies aiming at influencing factors in order to promote the rapid development of power distribution grid project in Inner Mongolia.

The role of affective reactions on investment decision-making

2007 ◽  
Author(s):  
Enrico Rubaltelli ◽  
Giacomo Pasini ◽  
Rino Rumiati ◽  
Paul Slovic
Keyword(s):  
Decision Making ◽  
Investment Decision ◽  
Affective Reactions ◽  
Investment Decision Making
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