scholarly journals FINANCIAL MANAGEMENT MODEL FOR FORMAL WORKERS IN INDONESIA

2020 ◽  
Vol 8 (2) ◽  
pp. 337-344
Author(s):  
Novy Karmelita Indrawati ◽  
Sri Umi Mintarti Widjaja ◽  
Wahjoedi ◽  
Agung Haryono
Keyword(s):  
Financial Management ◽  
Reference Model ◽  
Investment Decision ◽  
Management Model ◽  
Formal Sector ◽  
Investment Decision Making ◽  
Basic Reference ◽  
Upper Level ◽  
The Individual ◽  
Type Of Institution

Purpose of the study: This paper is intended to understand the investment pattern for formal workers in Indonesia. Thus, it is also aimed to provide a specific form of variable construction of productive financial management for workers. Methodology: This study followed qualitative research by emphasizing the active interaction of the subject and the object of researchers in the form of a discussion to determine the ideas or basic reference model of productive financial management, specifically and focus on each individual form in which the organization is located. The data were gathered using in-depth interviews with respondents in the category of civil servants, state-owned and private employees with lower, middle, and upper-level segregation of interests and reasons for making investment decisions. Main Findings: The findings showed that the investment decision making for formal sector workers are motivated by benefits and financial security in the future. Their investment decision also considers the income received by individuals in each type of institution. Lastly, technology contributes to change investors’ economic behaviour. The ease of getting information strengthens the motivation of formal sector workers in productive financial management.    Applications of this study: This study provides an investment decision model for formal workers that can be considered ways to enhance the individual understanding of investment. Novelty/Originality of this study: This study aims to contribute to this growing area of research by exploring investment patterns for formal workers then propose a financial management model for workers.

scholarly journals Pengaruh Adverse Selection Dan Negative Framing Terhadap Eskalasi Komitmen Dalam Pengambilan Keputusan Investasi

2020 ◽  
Vol 10 (3) ◽  
pp. 197-206
Author(s):  
Siti Zakiyah Hayati Nasution ◽  
Rindah Febriana Suryawati
Keyword(s):  
Adverse Selection ◽  
Financial Management ◽  
Investment Decision ◽  
Project Manager ◽  
Escalation Of Commitment ◽  
Random Assignment ◽  
Anova Analysis ◽  
Analysis Techniques ◽  
Investment Decision Making ◽  
Management Students

Escalation of commitment behavior in investment decision making is an ineffective action by persisting on a project that indicates failure. This study aims to examine whether or not an adverse selection and negative framing effect on the tendency of escalation of commitment. This experimental research uses a 2 x 2 factorial design with an instruments of "PT Kue Hebat" case. Participants were Bachelor Degree of Management students who enrolled in Financial Management subject, as substitute for managers whom are chosen by random assignment technique as much as 50 participants. This study uses two ways ANOVA analysis techniques. The results of the study prove that the project manager will show a tendency to escalate commitment by continuing unfavorable projects in adverse selection conditions or in negative framing conditions.

Investor Biases in Financial Decisions

2015 ◽  
pp. 147-169
Author(s):  
Shalini Kalra Sahi
Keyword(s):  
Decision Making ◽  
Information Processing ◽  
Financial Management ◽  
Investment Decision ◽  
Self Awareness ◽  
Rational Decision ◽  
Net Worth ◽  
Financial Decisions ◽  
Investment Decision Making ◽  
Making Choices

Financial Decisions involve making choices between various investment alternatives, with the aim of increasing the individual's net worth. The investor today is exposed to various investment options, but does not have the knowledge and capability of evaluating all the options and making a rational decision. Due to the limitation in the information processing capacities of the individuals, their beliefs and preferences, the investment decision-making process, gets biased. This chapter highlights ten such biases and throws light on how they impact investment behaviour, both positively and negatively. This understanding of investor psychology will generate insights that will benefit the financial advisory relationship. Further for Individuals, recognizing how the biases impact their financial decisions, can help create self-awareness and an understanding that would help them in better financial management, in case these tendencies are leading them to make unsatisfactory investments.

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.

Pengaruh Framing Effect dan Adverse Selection Dalam Pengambilan Keputusan Investasi (Studi Eksperimental)

2021 ◽  
Author(s):  
Rian Abrori
Keyword(s):  
Decision Making ◽  
Adverse Selection ◽  
Financial Management ◽  
Investment Decision ◽  
Framing Effect ◽  
Accounting Students ◽  
Investment Theory ◽  
Investment Decision Making ◽  
Independent Variable ◽  
The University

This study aims to provide empirical evidence about whether there are differences in investment decision making on subjects who get negative framing with adverse selection and no adverse selection. and whether there are differences in investment decision making on subjects who get positive framing with adverse selection and no adverse selection. the dependent variable in this study is investment decisions and the independent variable used is the framing effect and adverse selection.This research is an experimental study with participants of the university accounting students Trunojoyo Madura, the population taken is 100 accounting students who are pursuing investment theory courses and have taken financial management courses, out of which 100 participants have 64 qualified researchers. Data analysis used descriptive statistics and different tests with Mann Whitney.The results of this study indicate that there is no difference in investment decision making on subjects who get negative framing with adverse selection and no adverse selection. and there was no difference in investment decision making on subjects who received positive framing with adverse selection and no adverse selection.

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 Comprehensive measurement of social enterprise impact

2018 ◽  
Vol 69 (5) ◽  
pp. 571-593
Author(s):  
Ondřej Kročil ◽  
Richard Pospíšil
Keyword(s):  
Financial Management ◽  
Social Enterprise ◽  
Investment Decision ◽  
Social Enterprises ◽  
Social Investment ◽  
Social Entrepreneurs ◽  
Public Authorities ◽  
Investment Decision Making ◽  
Profit Maximisation ◽  
Comprehensive Measurement

The theory of enterprise financial management offers number of methods used in practice which serve as basis for investment decision making and as a mode of feedback on its effectivity and impacts. Most of these methods are appropriate mainly for enterprise financial management whose main objective is market value maximisation or profit maximisation. But important elements of present-day economy are also enterprises pursuing a higher objective than profit. In European Union countries this role is played particularly by social enterprises in the form of profit-making or non-profitmaking organizations which quite often obtain public-budget-based support. Undoubtedly, social enterprise as a whole may be viewed as so-called social investment. Measuring of real impact of this type of investment is important not only for social entrepreneurs but also for public authorities or bodies and it requires application of different methods. Research objective of this article is to propose a set of methods which can be used to measure social enterprise contribution effectively and comprehensively by social entrepreneurs or public authorities.

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.

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