scholarly journals Individual Traits, Risk Perception, Financial Literacy & Investment Decisions

2020 ◽  
Author(s):  
Ni Luh Putu Sipta Dewi Anindita ◽  
Maria Ulpah
Keyword(s):  
Risk Perception ◽  
Financial Literacy ◽  
Investment Decisions ◽  
Individual Traits

scholarly journals EFFECT OF FINANCIAL LITERACY AND RISK PERCEPTION ON STUDENT INVESTMENT DECISIONS IN JAKARTA

2019 ◽  
Vol 3 (2) ◽  
pp. 107-132
Author(s):  
Rizky Eko Harry Saputro ◽  
Diyan Lestari
Keyword(s):  
Risk Perception ◽  
Financial Literacy ◽  
Sampling Method ◽  
Investment Decision ◽  
Linear Regression Analysis ◽  
Investment Decisions ◽  
Sampling Technique ◽  
Multiple Linear Regression Analysis ◽  
T Test ◽  
Test Result

This study aims to determine the effect of financial literacy and risk perception on student investment decisions in Jakarta. This study used a quantitative approach through questionnaires with as many as 120 respondents taken as sample which is obtained by using non-probability sampling technique and purposive sampling method. The research data is processed with SPSS, where the hypothesis is analyzed using t-test and multiple linear regression analysis. The results of this study indicate that financial literacy variable have a significant effect on investment decision, based on the t-test result which shows that t-count is higher in comparison to ttable (8,433>1,98045). Similarly, the risk perception variable have a significant effect on investment decision, which is shown by the higher tcount compared to t-table (2,319>1,98045).

scholarly journals EFFECT OF EMOTIONAL INTELLIGENCE AND FINANCIAL LITERACY ON INVESTMENT DECISION MAKING WITH A MEDIATING ROLE OF RISK PERCEPTION

2014 ◽  
Vol 02 (02) ◽  
pp. 12-20
Author(s):  
Sahar Parvez ◽  
Keyword(s):  
Emotional Intelligence ◽  
Risk Perception ◽  
Financial Literacy ◽  
Stock Exchange ◽  
Investment Decision ◽  
Investment Decisions ◽  
Mediating Role ◽  
Investment Decision Making ◽  
The Impact

This research paper examines the impact of emotional intelligence and financial literacy on investment decision with a mediating role of risk perception. The data is collected by using questionnaire, from a sample of 152 investors, from stock exchange and banks. The results support that to make adequate investment decisions, investors should be financially literate and have control on their emotions. However, risk perception of investors does not mediate this relationship.

scholarly journals Pengaruh Financial Literacy dan Risk Perception terhadap Keputusan Investasi Generasi Millennial Kota Padang

Jurnal Ecogen ◽  
2020 ◽  
Vol 3 (1) ◽  
pp. 144
Author(s):  
Yola Yolanda ◽  
Abel Tasman
Keyword(s):  
Risk Perception ◽  
Financial Literacy ◽  
Millennial Generation ◽  
Sampling Method ◽  
Investment Decisions ◽  
Secondary Data ◽  
Primary Data ◽  
Validity And Reliability ◽  
Normality Test ◽  
Positive Effect

This study aims to look at the influence of Financial Literacy and the effect of Risk Perception on the investment decisions of millennial generation of Padang City. The type of this research is a comparative causal research (causative). The samplesof this study was 96 respondents ofmillennial generation of Padang City that choosed by using purposive sampling method. The types of data in this study are primary data and secondary data. The data was collected by questionnairy technique and it was analysed byusing multiple regression analysis method. The instrument testing uses validity and reliability tests. The analysis prerequisite tests conducted include normality test, heterokedasticity test and multicollinearity test. The data collected was processed with SPSS version 20.0. The results of this study indicate that both of Financial Literacy and Risk Perception has a significant positive effect on investment decisions of millennial generation of Padang City. Keywords : financial literacy, risk perception

scholarly journals Analisis Pengaruh Keputusan Investasi Mahasiswa

2021 ◽  
Vol 9 (3) ◽  
pp. 1138-1149
Author(s):  
Lilis Ayudiastuti
Keyword(s):  
Risk Perception ◽  
Capital Market ◽  
Rapid Growth ◽  
Financial Literacy ◽  
Investment Decisions ◽  
Financial Knowledge ◽  
Illusion Of Control ◽  
Analysis Technique ◽  
The Impact ◽  
To Receive

In Indonesia, the capital market experiences very rapid growth. The increase of the IDX Composite in 2016 was an indicator of capital market developments and affects investment activities. The investment activities related to the investment judgments of investors are affected by many factors. This study discusses the impact of financial literacy, herding behaviour, risk perception, overconfidence, experience regret, and the illusion of control on investment decisions. This study used 100 equity investors registered in an investment gallery at the Universitas Nusantara PGRI Kediri as samples. The analysis technique is SEM PLS. Results show that financial literacy, overconfidence, and illusion of control affect investment decisions. Besides, herding behaviour, risk perception, and experience regret do not influence investment decisions. The significance of these findings is to provide knowledge about the aspects and factors that influence investment decisions. Financial literacy allows investors to gain more information and learn about investments to avoid and prevent risks. Overconfidence gives investors sufficient certainty and information in making decisions by paying attention to the risks to prepare themselves to receive returns from the undertaken investments. The illusion of control makes investors believe in their abilities which can trigger investment results. Students with better financial knowledge can make better investment decisions.

scholarly journals Effect of Regret Aversion and Information Cascade on Investment Decisions in the Real Estate Sector: The Mediating Role of Risk Perception and the Moderating Effect of Financial Literacy

2021 ◽  
Vol 12 ◽  
Author(s):  
Kaixin Wangzhou ◽  
Mahnoor Khan ◽  
Sajjad Hussain ◽  
Muhammad Ishfaq ◽  
Rabia Farooqi
Keyword(s):  
Risk Perception ◽  
Real Estate ◽  
Financial Literacy ◽  
Investment Decisions ◽  
Information Cascade ◽  
The Real ◽  
The Real Estate ◽  
Real Estate Sector ◽  
Regret Aversion

The real estate sector plays a significant role in the economy of any country. However, many investors make irrational investments in the real estate market. Therefore, the purpose of this study is to assess the effects of regret aversion and information cascade on investment decisions while considering the moderating role of financial literacy and the mediating effect of risk perception in the real estate sector of developing countries. This research utilized a quantitative research technique, collecting data by distributing structured questionnaires to real estate investors, followed by convenience sampling. This study used both descriptive and inferential statistics to make the data more meaningful. SPSS 25.0 was utilized to interpret the data. Cronbach's alpha was used to test for internal consistency, while validity was checked through correlation. Confirmatory factor analysis (CFA) was applied to confirm that the items on the questionnaire are perfectly loaded on their construct. Furthermore, process macro, model 5, was used to investigate the moderation mediation. This work addresses a gap in the literature by studying financial literacy as a moderator and risk perception as a mediating variable in regret aversion bias and information cascade bias's relationships with investment decisions in the real estate sector. The results confirmed that financial literacy weakens the negative effect of behavioral biases (regret aversion and information cascade) on investment decisions. In addition, risk perception mediates the relationships between these cognitive biases (regret aversion and information cascade) and decision making. The effects of other behavioral biases in real estate and stock market contexts should be examined in future research.

Overconfidence heuristic-driven bias in investment decision-making and performance: mediating effects of risk perception and moderating effects of financial literacy

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Maqsood Ahmad ◽  
Syed Zulfiqar Ali Shah
Keyword(s):  
Decision Making ◽  
Risk Perception ◽  
Financial Literacy ◽  
Investment Decision ◽  
Investment Decisions ◽  
Individual Investors ◽  
Content Type ◽  
Investment Decision Making ◽  
And Performance

PurposeThis paper aims to show how overconfidence influences the decisions and performance of individual investors trading on the Pakistan Stock Exchange (PSX), with the mediating role of risk perception and moderating role of financial literacy.Design/methodology/approachThe deductive approach was used, as the research is based on the theoretical framework of behavioural finance. A questionnaire and cross-sectional design were employed for data collection from the sample of 183 individual investors trading on the PSX. Hypotheses were tested through correlation and regression analysis. The Baron and Kenny method was used to test the mediation effect of risk perception and the moderation effect of financial literacy. The results of mediation and moderation were also authenticated through the PROCESS and structural equation modelling (SEM) technique.FindingsThe results suggest that risk perception fully mediates the relationships between the overconfidence heuristic on the one hand, and investment decisions and performance on the other. At the same time, financial literacy appears to moderate these relationships. The results suggest that overconfidence can impair the quality of investment decisions and performance, while financial literacy and risk perception can improve their quality.Practical implicationsThe paper encourages investors to base decisions on their financial capability and experience levels and to avoid relying on heuristics or their sentiments 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 the expensive errors that 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 better investment decisions and a more efficient market. The paper also highlights the importance on relying on professional knowledge, giving it greater weight than feelings and biases.Originality/valueThe current study is the first to focus on links between overconfidence, financial literacy, risk perception and individual investors' decisions and performance. This article enhanced the understanding of the role that heuristic-driven bias plays in the investment management, and more importantly, it went some way towards enhancing understanding of behavioural aspects and their influence on the investment decision-making and performance in an emerging market. It also adds to the literature in the area of behavioural finance specifically the role of heuristics in investment strategies; this field is in its initial stage, even in developed countries, while, in developing countries, little work has been done.

scholarly journals INVESTMENT BEHAVIOR IN GENERATION Z AND MILLENNIAL GENERATION

2020 ◽  
Vol 1 (5) ◽  
pp. 766-780
Author(s):  
Riska Rosdiana
Keyword(s):  
Risk Perception ◽  
Financial Literacy ◽  
Millennial Generation ◽  
Linear Regression Analysis ◽  
Investment Decisions ◽  
Multiple Linear Regression Analysis ◽  
Risk Averse ◽  
Herding Behavior ◽  
Generation Z

The purpose of this study was to determine the effect of the level of financial literacy, herding behavior, risk-averse, risk perception on investment decisions in the Z generation, and the Millennial generation. Respondents are academicians in the Faculty of Economics and Business, Mercu Buana University who already have income, which includes: Lecturers, Staff, and Students aged 15 - 39 years. Determination of the sample using non-probability sampling with an accidental sampling approach. Data were analyzed using Multiple Linear Regression Analysis. The results showed that financial literacy, herding behavior, risk-averse, risk perception have a positive effect on investment decisions.

scholarly journals Moderating Effect of Risk Perception on Financial Knowledge, Literacy and Investment Decision

2019 ◽  
pp. 34-44
Keyword(s):  
Risk Perception ◽  
Financial Literacy ◽  
Investment Decision ◽  
Investment Decisions ◽  
Moderating Effect ◽  
Partial Least Square ◽  
Least Square ◽  
Financial Knowledge ◽  
Wealth Accumulation ◽  
Financial Decisions

Financially unsophisticated investors who consistently make sub-optimal financial decisions may suffer lasting consequences for long-term wealth accumulation and welfare. This study examines moderating effect of risk perception on financial knowledge, literacy and investment decision. Data was collected from 378 investors through the aids of structured questionnaires. The research hypotheses were tested using partial Least-square (PLS) regression. The findings reveals that there is positive and significant effect between financial knowledge, risk perception and investment decisions, while positive but insignificant effect was found between financial literacy and investment decisions. However, risk perception moderates the effect of financial literacy, investment knowledge on investment decisions. It recommends that investors, policymakers and individuals investors should embark on various educational programmes, to further influence the level of their investment decisions before committing their hard earning fund into project.

scholarly journals Moderating Effect of Risk Perception on Financial Knowledge, Literacy and Investment Decision

2019 ◽  
Vol 1 (1) ◽  
pp. 34-44 ◽  
Author(s):  
Samuel Alaba Ademola ◽  
Aishat Sarki Musa ◽  
Idachaba Odekina Innocent
Keyword(s):  
Risk Perception ◽  
Financial Literacy ◽  
Investment Decision ◽  
Investment Decisions ◽  
Moderating Effect ◽  
Partial Least Square ◽  
Least Square ◽  
Financial Knowledge ◽  
Wealth Accumulation ◽  
Financial Decisions

Financially unsophisticated investors who consistently make sub-optimal financial decisions may suffer lasting consequences for long-term wealth accumulation and welfare. This study examines moderating effect of risk perception on financial knowledge, literacy and investment decision. Data was collected from 378 investors through the aids of structured questionnaires. The research hypotheses were tested using partial Least-square (PLS) regression. The findings reveals that there is positive and significant effect between financial knowledge, risk perception and investment decisions, while positive but insignificant effect was found between financial literacy and investment decisions. However, risk perception moderates the effect of financial literacy, investment knowledge on investment decisions. It recommends that investors, policymakers and individuals investors should embark on various educational programmes, to further influence the level of their investment decisions before committing their hard earning fund into project.

Behavioural, Socio-economic Factors, Financial Literacy and Investment Decisions: Are Men More Rational and Women More Emotional?

2021 ◽  
pp. 001946622098702
Author(s):  
Swati Prasad ◽  
Ravi Kiran ◽  
Rakesh Kumar Sharma
Keyword(s):  
Financial Literacy ◽  
Structural Equation ◽  
Investment Decisions ◽  
Jel Classification ◽  
Economic Factors ◽  
Fund Managers ◽  
Multivariate Technique ◽  
Retail Investors ◽  
Behavioural Factors ◽  
Socio Economic Factors

This study covers the gender-wise analysis of how behavioural factors and socio-economic factors along with the level of financial literacy influence investment decisions of Indian retail investors. Equally pertinent is to understand that will it have a different influence and bearing on males and females. Multivariate technique partial least squares-structural equation modelling (PLS-SEM) has been applied to develop the model and analyse the results. The study used a structured questionnaire for collecting data from retail investors. The findings of PLS-SEM show that in both genders, behavioural factors, socio-economic factors and financial literacy factors significantly affect investment decisions. However, the findings demonstrate that for women investors, the model is more effective. This study may be useful for prospective fund managers as, in many earlier studies, women are considered to be risk aversive. The results demonstrate that there is a need to target women, and the scenario today is not similar to the pre-existing ones. JEL Classification: G110, G4

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