Individual investor's investment choice in Tanzania

The main aim of this research is to examine the influence of overconfidence, herding behavior, disposition effect, and risk aversion on investors' investing choices. Moreover, the primary objective of this research is to investigate the moderating impact of financial literacy on the relationship between behavioral biases and investment choices made by investors. The demographic under investigation consists of individual investors who actively participate in investing activities inside the Pakistan Stock Exchange. The sample for this research consists of 365 individual investors. The researcher used a survey questionnaire as a means of collecting data from the participants. The researcher used a structural equation model to examine the findings. The results of this research indicate that there is a statistically significant and positive association between overconfidence, herding behavior, disposition effect, and risk aversion in the context of investors' decision-making pertaining to their investments. Moreover, the results also indicate that financial literacy assumes a moderating function in the relationship between behavioral biases and investment choices executed by investors. The implications of the study's results have considerable importance for individual investors, since they might potentially improve the accuracy of their decision-making processes

The main aim of this research is to examine the influence of overconfidence, herding behavior, disposition effect, and risk aversion on investors' investing choices. Moreover, the primary objective of this research is to investigate the moderating impact of financial literacy on the relationship between behavioral biases and investment choices made by investors. The demographic under investigation consists of individual investors who actively participate in investing activities inside the Pakistan Stock Exchange. The sample for this research consists of 365 individual investors. The researcher used a survey questionnaire as a means of collecting data from the participants. The researcher used a structural equation model to examine the findings. The results of this research indicate that there is a statistically significant and positive association between overconfidence, herding behavior, disposition effect, and risk aversion in the context of investors' decision-making pertaining to their investments. Moreover, the results also indicate that financial literacy assumes a moderating function in the relationship between behavioral biases and investment choices executed by investors. The implications of the study's results have considerable importance for individual investors, since they might potentially improve the accuracy of their decision-making processes

Private investment is one of the most important people financial components. Basically, it is an investment activity undertaken by individuals. In most cases investment efforts are intended to ensure the financial security later in life. The choice of them is relatively wide. However, for individual investors information about this receipt flow frequent is limited or poorly accessible. Therefore individual investors potential types of investment choices, their benefits and disadvantages of summation research in this area is valuable, relevant and new, both in theoretical and practical terms. Objective of the study - conclude individual investors potential investment alternatives selection model under the most relevant criteria. For an individual investor to understand the possible role of investment and management capabilities article summarizes the works of scientists presented the concept of investment. Individual investor's investment - is the active use of money, during which the money earns money and work for people and the partially guarantees additional revenue, provide permanent capital increase to satisfy the personal needs, implementing personal financial goals. For individual investor is most relevant investment funds classify according to investment properties, investor type and by period of investment and risk levels. In order to evaluate the investment options preferred by an individual investor was identified seven individual investors potential investment alternatives evaluation criteria: low risk of losing money; a high return; the initial amount of capital; lack of knowledge; access to information; short payback period; lack of need for continuous investment. In Article individual investor's investment options structured, provided essential types of investments advantages and disadvantages, also investments divided into two main groups. 1. Investment alternatives that do not require a large initial capital or nor the additional knowledge, and with little risk of losing money, the long payback period, adequate information dissemination about them, but with little return (deposits, government saving measures, gold). 2. Investment options on which information is available in difficult, often require additional knowledge, a bigger risk of losing money, but a short payback period (stocks, real estate, art values).

PurposeThe purpose of this study is to examine the role of financial and nonfinancial information in determining individual investor's investment decisions by analyzing the mediating effect of corporate reputation.Design/methodology/approachThe approach of this study is deductive; therefore, the quantitative strategy is used for data collection. Primary data are collected from individual investors actively involved in stock trading at Pakistan Stock Exchange (PSX). Structural equation modeling is used to assess structural relationships.FindingsThe key findings of this study posit that financial and nonfinancial information positively influence an individual investor's investment decision. This study also provides empirical evidence confirming the mediating role of corporate reputation. Categorically, the findings indicate that financial and nonfinancial information remain significant to build perceived corporate reputation and influence investor's investment decisions.Practical implicationshe proposed model presents novel insight into the individual investor's investment decision in the context of Pakistan. The findings of this study remain robust for firms listed on the stock exchange and individual investors involved in stock trading. The results of this study are substantial to individual investor's and broker for making informed financial choices. Moreover, the firms listed on the PSX can use the findings to establish improved corporate reputation through reporting detailed financial and nonfinancial information.Originality/valueStudies based on subjective measures in finance are lacking. This study contributes to the existing literature of behavioral finance by analyzing variations in investor's investment decisions explained by informational factors. The proposed model testifies the mediating role of corporate reputation in guiding investor's investment decisions, which has been overlooked by past studies. Therefore, this study seeks to fill this gap in the context of the PSX.

The field of behavioral finance has actively researched behavioral elements influencing the choices of individual investors. This study also contributes to the behavioral finance and examines the effect of an increase in a foreign firm’s partial ownership in a domestic firm on the local individual investments in that domestic firm. Specifically, using a controlled lab experiment the study examines the investments of Pakistani individual investors between a purely Pakistani firm and a Pakistani firm with three different levels of Chinese ownership (portfolio, minority, majority). The experimental results show that with reference to Chinese minority ownership in a Pakistani firm, the potential investors are 47% (61%) less likely to invest in a Pakistani firm with Chinese portfolio (majority) ownership than in a purely Pakistani firm. The study uncovers an important non-monetary factor in the form of a foreign firm’s partial ownership that can significantly influence the choices of individual investors. It also makes an important contribution to the growing literature on the Chinese foreign investments specifically in Pakistan by exploring how potential individual Pakistani investors are likely to react to an increase in Chinese investments in Pakistani firms.

The choice for a particular investment is obscured by the number of investments available in the market. In choosing an investment, individual households consider factors related to the household and individual asset characteristics. The current study examined such factors from the perspective of individual households in Tanzania. Data was collected from a sample of 1,120 households participating in investment activities in Tanzania while the multinomial logit model was adopted for the analysis. Factors of occupation, income, risk-taking, irrational behaviours (representative bias, anchoring) and asset availability attributed to taking up risky assets with risk aversion tendencies, overconfidence, anchoring and loss aversion behaviours attributing to taking up less risky assets. The results narrate the importance of integrating both individual assets and household characteristics in selecting an investment. It further calls for an education policy on investment decisions and the availability of information relevant to making investment decisions.

The paper addresses the specificities of tax incentives in the form of tax reliefs designated for individual investors, who invest in bonds in the Russian Federation. The need for the use of tax incentives to encourage individual investors to purchase bonds is regarded as an integral aspect of the bondization, announced by the Bank of Russia. The objective of this paper is to analyze the specific features of the investment tax relief implementation in the Russian Federation and to reveal issues that remain controversial and require particularization. It was found that stimulation of investment through tax is widely studied by foreign scientists; however, it is almost completely disregarded in Russia. The following tax innovations related to investments of individual Russian investors were analyzed: tax relief for coupon income, derived from corporate bonds; investment tax deductions (individual investment account and long-term capital gains exemption); long-term capital gains exemption for securities of the high-tech (innovation) sector of economy. Reconciliation schemes for the above-mentioned reliefs were identified. Insufficiency of quantitative data for the effectiveness evaluation of tax relief for individual investors was revealed, which was explained by the short validity period of this relief. The authors proved the absence of a uniform system tax relief instruments for individual investors and found that bond holders have more tax relief options, compared to share holders of other investment instruments. In this context, it was proposed to make amendments to the Tax Code of the Russian Federation in order to ensure tax equalization with relation to derivative instruments, designed on the basis of bonds, mutual fund units). In addition, it was recommended to adjust a number of technical aspects, connected with tax relief application and to evaluate the effectiveness of the reliefs under study. Highlights 1. A tendency towards emergence of a tax relief system for individual investors is revealed in the context of the active development of the bond market in the Russian 2. In the Russian Federation, there are a number of tax reliefs for bond holders, including coupon income exemption from tax and investment tax deductions, which are not bound into a uniform system 3. Reconciliation of tax reliefs for individual investors is possible; however, there are issues that remain controversial and require particularization 4. The current tax reliefs for individual investors require improvement. It is important to make certain amendments to the Tax Code of the Russian Federation and evaluate the effectiveness of tax reliefs For citation Belomyttseva O. S., Grinkevich L. S., Grinkevich A. M., Bobek S., Tominc P. Tax incentives for bond-oriented individual investors: evidence from the Russian Federation. Journal of Tax Reform, 2018, vol. 4, no. 2, pp. 108–124. DOI: 10.15826/jtr.2018.4.2.047 Article info Received June 6, 2018; accepted July 12, 2018

Purpose – The paper, an exploratory attempt, aims to analyze the perception of individual investors of stock market of Punjab towards investing in stocks vis-à-vis fixed deposits. For the purpose, the most and least influencing variables affecting the decisions of individual stock investors to invest in stocks and fixed deposits were gauged and the comparison for such variables influencing their preferences was conducted. Design/methodology/approach – A pre-tested, well-structured questionnaire which was administered personally and the responses of 241 respondents were analyzed. The responses have been analyzed with the help of weighted average scores method used to identify the most and least influencing variables and paired sample t-test is applied to the data to identify if there exists any significant difference in the variables influencing the investment preferences for stocks (high-risk investment) vis-à-vis fixed deposits (low- and medium-risk investment). Findings – High returns was found as the most important variable while investing in stocks and stability of income as the most important variable while investing in fixed deposits. Religious reason is the only variable found as the least influencing variable for individual investors in Punjab while investing in both avenues, i.e. stocks and fixed deposits. Statistically significant difference exists in perception of individual investors for 22 variables towards the preference for stocks vis-à-vis fixed deposits. Practical implications – The current research will be helpful for financial service providers in understanding the investment preferences of the individual stock investors on the basis of variables influencing such preferences and suggest them investment options as per their perceptions and needs. Originality/value – This paper is a first of its kind to empirically compare the variables influencing the preferences for high-risk investments vis-à-vis low-risk investments of individual investors of Punjab, India and contributes to the understanding of the investor behaviour.

Behavioural finance is important component of investment decision making of the people. It is based on the psychology; attempt to understand how emotions and cognitive errors influence individual investors’ behaviours. This study sought to determine the impact levels of behavioural influences on the individual investor choices of securities at Colombo Stock Exchange (CSE). It was guided by one main objective seeking to determine the impact level of behavioural factors influences on the individual investors’ investment decisions at CSE. To meet the objectives of the study, a descriptive survey design was chosen. Primary data was collected using self-administrated questionnaires. It was based on 200 individuals selected through CSE Northern Province. The data analysis for this study was performed with the help of SPSS. This study used multiple regression and correlation analysis. To examine such impact of behavioural factors considered as the independent variable with the proxies of regret aversion, overconfidence, availability bias, past trends of stock, market information, buying and selling of other investors and individual investors’ decision-making is dependent variable. The findings reviled that the overconfidence, availability bias and past trends of stock have insignificant impact on investment decision of individual investors at CSE at 5 % significant level. The regret aversion, market information, buying and selling of other investors have significant impact on investment decision making of individual investors at CSE at 5 % significant level. The research, as overall, concluded that there is moderate significant impact of Northern province investors behavioral factors influence on individual investors’ decision making at CSE Sri Lanka

Investing is a financial activity that provides a wide array of options for individuals looking to grow their wealth. Recent trends show that investors exhibit highly dynamic behavior, which is influenced by a multitude of factors related to investments. These factors impact individual investors based on their investment goals, perceptions, attitudes, and expectations regarding risk and returns. This research delves into investment guidelines tailored for various types of organizations, each characterized by distinct residual claim attributes. Varied limitations on residual claims result in different decision-making principles. The analysis suggests that open corporations, financial mutual funds, and nonprofit organizations can be modeled using the principle of maximizing value. However, this principle may not generally apply to proprietorships, partnerships, and closed corporations. The primary drivers affecting individual investment decision-making are financial and geographical considerations. Therefore, this study aims to identify the factors influencing individual investment choices and explore gender-based disparities in investors' perceptions when making investment decisions. The study concludes that the risk appetite of investors predominantly shapes their investment decisions. In this research, we apply the Technique for Order of Preference by Similarity to Ideal Solution (TOPSIS) method to assess investment options tailored for salaried individuals. We systematically examine six critical criteria: Return on Investment (ROI), Liquidity, Risk, Lock-in Period, Tax Implications, and Initial Investment Amount. Our analysis covers five investment choices—Stock Market, Real Estate, Fixed Deposits, Mutual Funds, and Gold. The findings indicate that Stock Market emerges as the top choice due to its strong performance in terms of potential returns and risk management. Mutual Funds and Gold closely follow suit. Fixed Deposits and Real Estate, while still viable options, hold lower rankings primarily due to specific trade-offs. This study provides a structured approach for individuals to make informed investment decisions, taking into account their distinct financial objectives, risk tolerance, and available resources.

This study investigates how behavioural biases affect how individual investors make investing decisions. Drawing upon the discipline of behavioral finance, which integrates psychological insights into financial decision-making, we investigate the presence and effects of various biases on investment behavior. The study aims to contribute to understand the factors thoroughly that shape individuals' investment choices and their subsequent financial outcomes. Using a mixed-methods approach, including surveys and interviews, we explore the prevalence and magnitude of biases for instance loss aversion, overconfidence, and framing effects among individual investors. By analyzing real-world investment decisions, we assess the influence of these biases on portfolio composition, trading frequency, and performance outcomes. According to the preliminary findings, behavioral biases play a significant role in shaping investment decisions. Overconfident investors prefer to trade more often, leading to higher transaction costs and lower returns. Loss aversion biases lead to suboptimal portfolio allocation, as investors disproportionately allocate funds to low-risk assets. Additionally, framing effects impact decision-making by altering risk perceptions and preferences. The study underscores the importance of recognizing and mitigating behavioral biases in investment decision-making. By raising awareness and providing insights into the specific biases influencing individual investors, this research offers valuable implications for financial education, regulatory policies, and investment advisory services. Ultimately, understanding the role of behavioral biases can contribute to more informed and rational investment decision-making, leading to improved financial outcomes for individual investors.

Discipline is the bridge between goals and accomplishments and good financial habits bring discipline in financial decision making and have profound impact on the investment choices. This study proposes to study core financial habit of making financial plan adopted by individual investors while doing their investment planning and its impact on the investment preferences and objectives. In this study, survey approach has been adopted using a structured questionnaire with 559 sample size. The study has been taken within the geographical area of Indore and Ujjain district in Madhya Pradesh State of Central India. It has been found from the analysis that financial habits of investors play a crucial role in their investment preferences and objectives. Analysis has been done using Mann Whitney U test.
 The results of the research paper would contribute in developing understanding of the impact of financial habits on investment behavior and choices and thus serves an important insight to investors, financial planning professionals and other stakeholders linked to financial planning.

Australia’s retirement savings regime requires employers to make contributions to a superannuation fund for their employees. Workers who may have no experience of investment are asked to make relatively complex decisions, which have significant implications for their retirement lifestyle. Evidence suggests individuals may be unduly influenced by recent historical returns when making investment choices. Such a bias may produce sub-optimal results over the longer-term. This paper uses a large database from four not-for-profit retirement savings funds to investigate members’ investment choices using logistic regression and multi-variate tests. We find evidence that choices are driven by recent historical returns. We also investigate demographics and find a link between age and return chasing behaviour.

This study explores the various factors that influencing individual investor performance towards Pakistan Stock Exchange (PSX), highlighting on the relationship of accounting information (AI), demographic factor (DF), and credibility factor (CF), reliability factor (RF) and religious & norms factor (RN). The consequence of this research influence to understanding the difficulties of individual investor’s decision making process in an emerging economy, mainly in Pakistan, where the monetary markets are developing quickly, and the part of individual investors is gradually critical to monetary development. The main goal of this research is to inspect the amount to which these elements effect the investment choices of investors in the Pakistan stock exchange (PSX). The precise objects include measuring how demographic factor like person age, level of education, gender, and relationship status would impact individual investor conduct, studying the part of accounting info in determining investor belief and insights of value, assessing the impression of the supposed trustworthiness and consistency of financial organisations on investment choices, and discovering how spiritual norms effect investment actions. This study conducts a quantitative method, using a survey practice to collect primary data from individual investors (II) in Karachi, through an entire of 220 respondents who filled the survey. The findings disclose numerous critical understandings like substantial changes in investment conducts are obvious across numerous demographic parts, with newer stakeholders representing a greater feeling toward digital exchange platforms.

The effect of fiscal and monetary policy is transmitted in several ways by investor choice and the performance of investments. This study investigates how individual investors perceive government fiscal and monetary policy decisions and how they respond to such policy changes to make profitable investments. The data were gathered from a diversified group of 364 individual investors in the Colombo Stock Exchange (CSE) by administering a structured questionnaire focusing on their opinions of fiscal and monetary policy changes. Factor analysis was carried out to identify the meaningful fiscal and monetary policy actions that determine individual investment decisions and performance. The results of multiple regression analysis show that the government’s choice of tax instruments has a significant influence on stock returns and all taxes jointly depress investor investment performance. Government expenditure as a fiscal policy variable has a positive impact on investor returns, implying that a continual increase in government expenditure will result in the enhancement of firm profits and returns to investors by allowing stock prices to go up. Thus, market participants might assume that expansionary fiscal policy signals an increase in future returns. Further, a decline in interest rates and an increase in money circulation under monetary policy impacts positively on investors’ investment performance. As expected, an increase in money circulation in the economy will persuade investors to invest more in stocks as extra funds are available. These results have important implications for both investors and stock market analysts in their effort to understand the impact of fiscal and monetary policies on the stock return expectations of individual investors, but they should consider both fiscal and monetary policy decisions and their interactions together rather than in isolation.