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.

Impact of socio-psychological factors on investment decisions: The mediating role of behavioral biases

2020 ◽  
Author(s):  
Sadia Jabeen ◽  
Syed Zulfiqar Ali Shah ◽  
Naheed Sultana ◽  
Altamash Khan
Keyword(s):  
Decision Making ◽  
Social Interaction ◽  
Loss Aversion ◽  
Investment Decision ◽  
Equation Modeling ◽  
Behavioral Biases ◽  
Mediating Role ◽  
Investment Decision Making ◽  
The Relationship

Unlike previous studies that examine the effect of behavioral biases on investor decision-making, this study explores the root causes of behavioral biases and examines the mediating role of behavioral biases in the relationship between different types of emotions and investment decision-making. The cognitive theory of depression, attentional control theory, and prospect theory together provide the foundation and anticipate that stress, depression, anxiety, and social interaction are the major sources of cognitive mistakes that,in turn, affect investment decision-making. Model testing relies upon the data collected from 252stock investors trading in different stock exchanges of Pakistan; in order to test the hypothesized relationship, structural equation modeling has been used. Depression is a major source of loss aversion bias. Anxiety is a strong source of herding. Stress is a major source of representative bias.Social interaction is a root cause of overconfidence. Loss aversion bias, herding, and overconfidence fully mediate the relationship between depression, anxiety, social interaction, and investor decision; however, anxiety has the strongest impact on investor decision via herding bias, while stress has both insignificant direct and indirect effect on investment decision-making. Keywords: Sources of biases, self-efficacy, behavioral pattern, investment decision.

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 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.

scholarly journals Investigating the Mediation Role of Information Technology (IT) Components in the Relationship between Knowledge Management (KM) Processes and Decision-Making

2018 ◽  
Vol 13 (4) ◽  
pp. 108
Author(s):  
Maha Alkhaffaf
Keyword(s):  
Decision Making ◽  
Information Technology ◽  
Knowledge Management ◽  
Literature Review ◽  
Latent Variables ◽  
Structural Equation ◽  
Equation Model ◽  
Knowledge Application ◽  
Mediating Role ◽  
The Relationship

This paper is focused on providing a justification and rationale for the relationship between Knowledge Management (KM) theories, components of Information Technology (IT), and Decision-Making. A literature review is provided with the aim of examining the potential constructs associated with KM processes and components of IT in order to investigate potential aspects and factors pertaining to Decision-Making. In consideration to the findings garnered through the literature review, a research hypothetical framework was devised, combining the model characteristic constructs of the suggested model. In order to achieve framework validation, a survey was carried out across a total of 182 technical and administrative staff employed by various top and middle levels at a telecommunications organisation in Jordan—notably, Zain. Through the application of PLS Graph software coupled with the Structural Equation Model (SEM), an analysis was completed in consideration to the interrelationships inherent in those latent variables identified, comprising Decision-Making, IT components and KM processes. The findings garnered following the completion of the analysis suggest that there is an entirely mediating role in Knowledge Discovery and Knowledge Update. Furthermore, Knowledge-Sharing and Knowledge Application are, in part, mediating. In contrast, however, the relationship between IT components and Decision-Making are not mediated by Knowledge Capture and Knowledge Storage.This paper has been successful in filling the gap in the literature through garnering and highlighting further empirical evidence pertaining to the effects of KM processes on Decision-Making, with IT components positioned as a mediation construct.

The effect of perceived organisational politics on organisational silence through organisational cynicism: Moderator role of perceived support

2018 ◽  
pp. 1-20 ◽  
Author(s):  
Hadi A. AL-Abrrow
Keyword(s):  
Structural Equation ◽  
Survey Design ◽  
Equation Model ◽  
Public Hospitals ◽  
Perceived Support ◽  
Mediating Role ◽  
Moderator Role ◽  
The Relationship ◽  
Organisational Politics

AbstractThis study examines the effect of perceived organisational politics on organisational silence through the mediating role of organisational cynicism. In addition, it tests the effect of perceived support on this relationship. A quantitative (questionnaire survey) design was used to gather data from 346 employees in three public hospitals in Iraq. The structural equation model was used for data analysis. The results demonstrate that all the major hypotheses were accepted, and important role of perceived support in reversing the positive relationship between perceived organisational politics and organisational cynicism was also highlighted. Furthermore, the mediating role was clear in terms of organisational cynicism and the relationship between perceived organisational politics and organisational silence.

scholarly journals The Relationship between Accounting Information Systems and Making Investment Decisions in the Industrial Companies Listed in the Saudi Stock Market

2017 ◽  
Vol 10 (6) ◽  
pp. 199 ◽  
Author(s):  
Qasim Alawaqleh ◽  
Mahmoud Al-Sohaimat
Keyword(s):  
Decision Making ◽  
Information Systems ◽  
Investment Decision ◽  
Accounting Information ◽  
Kingdom Of Saudi Arabia ◽  
Policy Makers ◽  
Accounting Information Systems ◽  
Industrial Companies ◽  
Investment Decision Making ◽  
The Relationship

The study aimed to measure the relationship between the investment decision-making in the industrial companies listed in the Saudi Stock Market with the (IVs) characteristics of the accounting information systems (appropriateness and reliability, comparability and understanding), and renovation and maintenance of the hardware and software. The problem in the Kingdom of Saudi Arabia is that the government depends on oil revenues more than on attracting investments, therefore, the importance of this study is constituted by the provision of critical recommendations to policy makers in the Kingdom of Saudi Arabia in order to overcome this issue and improve the investments. In order to achieve the objectives of this study, questionnaires were administered to 194 people representing the study population; a multiple regression (standard regression) was also used to test the study hypotheses. In general, all variables were positively significantly related with the investment decision-making.The findings of this study also showed that the independent variables explained more than 65% of the variance in investment decision-making. The Saudi government and policy makers should issue new regulations to increase the interest in accounting information systems in order to attract the investment. In relation to the practical and theoretical contribution, this study used new variables in the new model, such as renovation and maintenance of the hardware and software. Furthermore, practical contribution will help policy makers and the Saudi government to advance in this area and implement new policies for investors in order to protect the economy and the society stability due to the war in Yemen and Syria.

scholarly journals Pengaruh Financial Literacy, Representativeness Bias, Dan Bias Optimisme Terhadap Pengambilan Keputusan Investasi

2020 ◽  
Vol 2 (3) ◽  
pp. 2976-2991
Author(s):  
Silvia Putri ◽  
Halmawati Halmawati
Keyword(s):  
Decision Making ◽  
Linear Regression ◽  
Multiple Linear Regression ◽  
Empirical Evidence ◽  
Financial Literacy ◽  
Stock Exchange ◽  
Investment Decision ◽  
Investment Decisions ◽  
State University ◽  
Investment Decision Making

This study aims to analyze 1) whether there is an influence of financial literacy on investment decision maknig. 2) Obtain empirical evidence whether there is an Representativeness bias making on investment decisions. 3) Does Bias optimisme affect investment decision making. In this study using Causality Design. Population and sampek are 104 respondents registered in the Indonesia Stock Exchange Investment Gallery (GIBEI) Faculty of Economics, State University of Padang. The method of analysis is multiple linear regression. The results of the study found 1) Financial literacy influences investment decisions on investment decision making.2) Optimum bias affects investment decisions on investment decision making. 3) Representativness influences investment decisions on investment decision making. 4) Together financial literacy variables, the optimum bias and representativness together influence the investment decision on investment decision making

scholarly journals Factor Influencing Investor’s Decision Making in Indonesia: Moderating the Role of Locus of Control

2020 ◽  
pp. 49-56
Author(s):  
Febria Nalurita ◽  
Farah Margaretha Leon ◽  
Hamdy Hady
Keyword(s):  
Decision Making ◽  
Locus Of Control ◽  
Loss Aversion ◽  
Structural Equation ◽  
Investment Decision ◽  
Equation Modeling ◽  
Investment Decision Making ◽  
Market Factors ◽  
Regret Aversion

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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