Affect Investment Decisions Research Articles

Does Social Media Sentiments Affect Investment Decisions A Moderated Mediation Analysis of the Relationship among Social Media Sentiments, trust, and Investment Decision

Does Social Media Sentiments Affect Investment Decisions A Moderated Mediation Analysis of the Relationship among Social Media Sentiments, trust, and Investment Decision

What factors affecting investment decision? The moderating role of fintech self-efficacy.

This study aims to determine, from the perspective of investors, the factors that predict Islamic unit trust (IUT) investment intentions. Additionally, this paper examines the moderating effect of fintech self-efficacy (FSE) on the relationship between attitude and investment intention. A total of 392 data were collected from IUT investors in Malaysia and analyzed using partial least squares structural equation modeling. The findings reveal that subjective norms have the highest impact on investment intention, followed by attitude and FSE, while religiosity is not significantly associated with investment intention in Islamic unit trust funds. Attitude significantly mediates religiosity-intention and Islamic financial literacy-intention relationships. FSE significantly moderates the attitude-intention relationship. The results shed light on the key factors that increase investing behavior and have direct managerial implications with regard to marketing strategies and target markets. These findings suggest that IUT service providers should take the lead in attracting customers through effective and targeted marketing initiatives, particularly by enhancing customers' FSE and capabilities. This study provides empirical evidence on the interrelationships between Islamic financial literacy, religiosity, and FSE in examining investors' behavior using the Theory of Planned Behavior framework. The study explores the moderating role of FSE on the relationship between attitude and investment intention.

Short-Selling on Corporate Investment: Korean Evidence

Purpose: Prior studies suggest that an informative stock price helps corporate investment decisions. Since short-selling improves the informativeness of stock prices, short-selling could influence corporate investment. This study examines this conjecture.
 Design/methodology/approach: Using KOSPI-listed firm data, this study examines whether short-selling affects quantitative aspects, that is, amount, and qualitative aspects, that is, risks and profitability, of R&D or capital expenditure.
 Findings: The results show a distinct contrast between the two types of investment. After short-selling, a decrease in R&D investment i s observed; however, capital e xpenditure i ncreases i n firms that i nvest much i n capital expenditure. A post-short-selling increase in R&D increases firm risk, but capital expenditure does not. Post-shortselling R&D investment is tied to long-term profitability; however, except for large firms, capital expenditure does not contribute to the increase in long-term profitability.
 Research limitations/implications: This study provides supporting evidence that improved informativeness of stock prices improves investment efficiency, not only through R&D investment but also through capital expenditure. However, by examining the topic in the big picture, this study leaves out the influence of several factors that can affect investment decisions.
 Originality/value: This is one of the rare studies that examines the real impact of short-selling.

경영자 과신성향과 ESG등급이 투자효율성에 미치는 영향

I would like to examine how management and overconfidence caused by ESG activities, which are issues among recent management techniques, affect investment decisions made by managers with strong overconfidence tendencies. This study analyzed whether CEO overconfidence affects investment efficiency according to ESG ratings. Overconfidence was measured based on the research of Schrand and Zechman(2012) and Ahmed and Duellman(2013), and investment efficiency was measured based on the research of Biddle et al.(2009). The study period is from 2013 to 2022, and the total number of samples is 6,298, and the results are as follows.
 First, overconfidence has a positive effect on investment efficiency, which means that the stronger the overconfidence tendency, the more inefficient it appears in investment efficiency.
 Second, ESG ratings have a negative effect on investment efficiency, which means that the higher the ESG rating, the more efficient the company's investment appears.
 Third, it was confirmed that overconfidence is alleviating investment inefficiency caused by overinvestment due to the high ESG rating. Companies with high ESG ratings have found that investment inefficiencies are mitigated even though managers have a strong tendency to over-line.
 This study is expected to contribute to prior research by analyzing the impact of overconfidence propensity on investment efficiency according to ESG ratings and providing evidence that it may vary depending on detailed grades.

Initial Public Offering (IPO) and Factors Influencing Investment Decision: Evidence from Dhangadhi

This study examines the initial public offering (IPO) and factors influencing investment decisions: evidence from Dhangadhi on the prospectus review, academic qualification, and experience. Prospect Theory and the Information Processing Perspective are discussed to understand the psychological biases and information processing capabilities that influence investors in IPOs. Data was collected through a survey of 200 respondents to investigate these factors empirically. The results of the study indicate significant relationships between the variables. The correlation analysis reveals strong positive correlations between the review of the prospectus and investment decision, as well as experience and investment decision. The correlation between academic qualification and investment decisions was positive but relatively weak. Furthermore, the regression analysis confirms the influence of these factors on investment decisions. The regression results demonstrate that reviewing a prospectus, academic qualification, and experience significantly affects investment decisions in IPOs. A higher review of a prospectus, educational qualifications, and experience are associated with more favorable investment decisions. The findings of this study have important implications for investors, financial professionals, and policymakers. Future research could consider a more extensive and diverse sample and investigate additional factors influencing IPO investment decisions.

Prospect Driven Biases Affecting Investment Decision Making: Mediating By Risk Perception And Moderating By Robo-Advisory

Prospect Driven Biases Affecting Investment Decision Making: Mediating By Risk Perception And Moderating By Robo-Advisory

Influential Factors Shaping Investor Decision-Making in the Nepalese Stock Market

The study investigates factors influencing investors' decision-making in the Nepalese stock market. It uses a research design with primary data collected through a questionnaire. The study focuses on financial performance, brokers' recommendations, and informal information as key factors affecting investment decisions. The findings suggest that most investors analyze the market condition and prioritize financial performance, while informal sources have a weaker correlation. Some investors still rely on rumors for their decisions. The study contributes valuable insights to investor behavior and decision-making in the Nepalese stock market.

Factors Affecting Investment Decisions of Permanent School Teachers in Pokhara

Investing is the use of money to increase its worth or generate more revenue. This article has been designed to examine the factors affecting investment decision of permanent school teachers in Pokhara. This study is based on causal comparative research design. It has used structured questionnaire to collect information. Samples were selected by multi sampling technique, selecting the than Chhorepatan Resource Center by purposive sampling in the first and selecting 139 permanent school teachers by simple random sampling in the second stage. The Total population of permanent school teachers of Pokhara Metropolitan City was 1,588 and targeted population was 211. The reliability of data is checked by calculating Cronbach Alpha and it was 0.77. Accounting information (AI), Firm`s Image (FI), Advocate Recommendation (AR), Personal Financial Need (PFA) and Dividend Policy (DP) were independent variable and Investment Decision (ID) was dependent variable. This research discovered that 61.2% of permanent teachers invest their fund in equity share. Lump sum investment method was more popular than systematic investment plan and monthly investment. 80% of permanent teachers invest less than 20% of their savings. Respondents prefers both cash and stock dividend policy. Regular income was found as main objective of investment. Friends and coworker’s advice was also considering while investing in equity share. This research has also presumed that there was positive significant relation between investment decisions and decision factors. It is suggested to the investors of stock market, to analyze the fundamental factors of issuer and the issuer should follow regular dividend policy to attract the value investors toward their securities.

Determinants of Investment Decision Making Based on Subjective Norms, Behavioral Control, Heuristic Behavior, and Demographic Factors

This study aimed to examine the effect of subjective norms, behavioral control, heuristic behavior, educational demographic factors, occupational demographic factors, and income demographic factors on the investment decisions of all investors in the Banyumas Regency. This research uses quantitative methods using 129 respondents, namely individuals who have made investment decisions. The data source of this research is primary data obtained from the distribution research questionnaires. The results of this study show that subjective norms affect investment decisions, behavior control affects investment decisions, heuristic behavior affects investment decisions, educational demographic factors do not affect investment decisions, occupational demographic factors do not affect investment decisions, and income demographic factors do not affect investment decisions. This finding also explains the implication that subjective norms, behavioral control, and heuristic behavior will support individuals in making an investment decision. The more positively an individual uses these factors, the better they make decisions. In contrast, demographic factors in this study do not support a person in deciding because income, occupation, and education are not the main determinants in decision-making.

Specifying and validating overconfidence bias among retail investors: a formative index

PurposeThe study explored various dimensions of overconfidence bias (OB) among retail investors in Indian financial markets. Further, these dimensions were validated through formative assessments for OB.Design/methodology/approachThe study applied exploratory factor analysis (EFA) to 764 respondents to explore dimensions of OB. These were validated with formative assessments on 489 respondents by the partial least square path modeling (PLS-PM) approach in SmartPLS 4.0 software.FindingsThe major findings of EFA explored four dimensions for OB, i.e. accuracy, perceived control, positive illusions and past investment success. The formative assessments revealed that positive illusions followed by past investment success among retail investors played an instrumental role in orchestrating the OBs that affect investment decisions in financial markets.Practical implicationsThe formative index of OB has several practical implications for registered financial and investment advisors, bank advisors, business media companies and portfolio managers, besides individual investors in the domain of behavioral finance.Originality/valueThis research provides a novel approach to provide a formative index of OB with four dimensions. This formative index can acts as an overview for upcoming researchers to investigate the OB of retail individual investors.Highlights Overconfidence bias is an important predictor of retail investors' behaviorFormative dimensions of the overconfidence bias index.Accuracy, perceived control, positive illusions and past investment success are important dimensions of overconfidence bias.Modern portfolio theory and illusion of control theory support this study.

The Impact of China-US Trade Conflict on Foreign Investment in China

The trade war between China and the United States, as the two largest global economies, has had a profound impact on both countries. However, China, being a developing nation that has attracted significant interest from investment companies worldwide, has been particularly affected by this conflict. The trade war has presented numerous challenges for companies looking to invest in China, but there have been notable improvements in recent years. This study aims to delve into the examination of the influence of objective changes and subjective changes experienced by investors on the ultimate outcomes of their investments. By analyzing both the tangible and intangible factors affecting investment decisions and outcomes, a comprehensive understanding of the trade war's impact on investment in China can be gained. Objective changes refer to the concrete alterations in trade policies, tariffs, and regulations that have been implemented as a result of the trade war. These changes may include increased tariffs on certain products, revised import and export regulations, or modifications to investment laws. These objective changes can directly impact the costs, profitability, and feasibility of investments in China. On the other hand, subjective changes pertain to the perceptions, attitudes, and sentiments of investors toward investing in China amid the trade war. These subjective changes can be influenced by factors such as geopolitical tensions, market uncertainty, and the perceived risks associated with investing in a country engaged in a trade war.

How do personality traits affect investors' decision on crypto market including cryptocurrencies and NFTs?

PurposeThe purpose of the research paper is to investigate the relationship between personality traits and investment decisions in the crypto market, including cryptocurrencies and NFTs. The study aims to explore the effect of dark personalities and the big five personalities on investment decisions in the crypto market.Design/methodology/approachThe research was conducted through two online questionnaire studies. In Study 1, data were collected from the general public, while in Study 2, data were collected from crypto investors. The researchers analyzed the effect of dark personalities and the big five personalities on investment decisions in the crypto market.FindingsThe present research found that Machiavellianism, narcissism, psychopath, sadism and extraversion have positive effects on having crypto investments. In addition, focusing on actual crypto investors, the present paper showed that personalities including Machiavellianism, narcissism, psychopath, consciousness and extraversion have statistically significant effect on investment decisions such as making investments in Bitcoin.Originality/valueThe study is original in exploring the relationship between personality traits and investment decisions in the newly emerging crypto market, including cryptocurrencies and NFTs. The research provides insights into how different personality traits affect investment decisions in the crypto market, which can be valuable for investors in making informed decisions.

Incorporating Elicited Preferences for Equality into Electricity System Planning Modeling

Sustainable Development Goal 7 of the United Nations is to achieve universal access to clean, modern and affordable electricity by 2030. However, 600 million people in sub-Saharan Africa (SSA) currently do not have access to electricity. As a result of this energy inequality, countries in SSA need to plan electricity systems that provide access in an equitable manner. The research question we explore in this paper is how integrating elicited preferences for equality into an electricity system planning model affects investment decisions regarding technology deployment. Our novel contribution is proposing a framework in the form of a discrete choice experiment and a statistical estimation model to determine decision makers’ preferences for equality. In our study, we find that higher preferences for equality result in an increased deployment of solar diesel mini-grids. These hybrid mini-grids, in turn, drive the carbon emissions intensity of the electricity system fourfold. As such, there is a need for stakeholders in Africa’s energy sector to consider the potential divergence between a carbon-minimizing electrification strategy and equitable electrification.

Digital Engagement Practices in Mobile Trading: The Impact of Color and Swiping to Trade on Investor Decisions

As coined by the SEC, Digital Engagement Practices (DEPs) are visual cues and design features to engage investors on mobile trading platforms. With the rise of mobile stock trading, regulators and other capital market participants are concerned that these DEPs may cause retail investors to trade in ways they otherwise would not. Using an experiment, we examine the impact of two common DEPs in mobile trading platforms—color (i.e., the use of green or red to indicate performance) and allowing investors to swipe versus click and confirm to execute trades. Drawing from prior research, we predict that the color associated with firm information will interact with how investors execute their trades to affect investment decisions. Consistent with expectations, results show that investors make the largest investment in a firm when they swipe to trade and firm information is colored green, relative to when they click and confirm to trade or firm information is colored red, holding firm economics constant. Swiping to trade causes investors to focus relatively more on the upside of investing, but only when firm information is colored green and not when it is colored red. The color red leads to a muted effect of swiping to trade as investors experience more negative affect and focus relatively more on the downside of investing. Our study answers calls from regulators and academics to examine the effects of technology on information evaluation in investment decisions, and has important practical implications for investors. This paper was accepted by Ranjani Krishnan, accounting. Supplemental Material: The data is available at https://doi.org/10.1287/mnsc.2023.00379 .

Analysis of Stock Portfolio with Global Economic Factors using Dynamic Data Modelling

This article analyzes stock portfolios and worldwide economic challenges. This study uses APIs to retrieve data and analyze correlations. To determine and measure how economic indicators affect stock performance. This work introduces an autoencoder-based model to better comprehend the complex relationship between economic conditions and stock portfolio dynamics. The analysis begins with an API retrieval of a wide range of macroeconomic information. These indicators include global economic metrics like GDP, unemployment, CPI, federal funds rates, and treasury bill rates. After collection, data is carefully curated and prepared for analysis. This study uses correlation analysis to understand economic variables and stock portfolio performance. This study explores how economic conditions affect stock prices and portfolio returns. This study seeks to discover trends, dependencies, and future issues that may affect investment decisions. This study also introduces an autoencoder-based neural network model to capture complex nonlinear relationships between economic variables and stock portfolio behavior. Deep learning improves interpretability and prediction, allowing a better understanding of the complex financial ecosystem dynamics. The inquiry provides valuable insights for investors, financial experts, and regulators. This study advances data-driven investment and risk management solutions. The autoencoder-based approach also reveals latent structures and hidden factors that affect stock portfolios. This novel approach opens new study options. In conclusion, this study provides a thorough stock portfolio analysis approach for global economic challenges. API data retrieval, correlation analysis, and a novel autoencoder model are used in this work to better understand the complicated relationships between economic indicators and financial markets. These insights can improve investment and policy decisions in a more integrated and dynamic global economy.

The influence of financial literacy and psychological factors on money market mutual fund investment decisions

Indonesia has experienced economic growth after the Covid-19 pandemic, which was accompanied by an increase in the number of first-time investors, especially the millennial and z generations. However, the lack of financial and psychological literacy of each investor, especially beginners who are not mature enough, will affect investment decisions that are not optimal. This study aims to examine the effect of financial literacy and psychological factors on money market mutual fund investment decisions. This research is a type of quantitative research. Methods of data collection by distributing questionnaires to 395 respondents who meet the criteria. The method used is Structural Equation Model - Partial Least Square. From the results of the study it was found that the T test on the independent variable Financial Literacy was 3,455 with a significance of 0.001, which means it has a significant effect on investment decisions, Emotion is 1,487 with a significance of 0.137, which means it does not have a significant effect on investment decisions, Social Interaction is 0.890 with a significance of 0.374, which means it is not significant effect on investment decisions, Considering The Past of 2.769 with a significance of 0.006, which means a significant effect on investment decisions. It is hoped that this research will provide insight to respondents that investment decisions can be measured using the level of financial literacy and psychological factors such as emotions, social interaction and considering the past.

Gold Price Fluctuation Forecasting Based on Newton and Lagrange Polynomial Interpolation

Gold is a highly valuable commodity and an investment opportunity for many people. However, thereare often significant fluctuations in gold prices that affect investment decisions. Various mathematicalforecasting methods have been developed to anticipate gold price fluctuations. This study uses historicaldaily data of gold prices during January-May 2023. The method used in this study is the Newton andLagrange polynomial interpolation method with several orders to analyze data and forecast gold pricefluctuations. The purpose of this study is to compare the performance and accuracy of the order levels ofthe Newton and Lagrange polynomial interpolation forecasting models. In this study, the test data pointsand orders are selected so that a range is formed that matches the amount of data available. The testorders used in this study include orders 2, 3, 5, 6, and 10. This study found that the 2nd order polynomialinterpolation method is more effective and accurate in forecasting gold price fluctuations compared tothe higher orders tested. This is indicated by the results of the calculation of MAE, RMSE, and MAPEvalues in 2nd order polynomial interpolation which are smaller than in 3rd, 5th, 6th, and 10th orderpolynomial interpolation. This suggests that a polynomial of 2nd order has been able to model andforecast gold price fluctuations well. However, it is important to remember that these conclusions arebased on the data and methods used in this study. Variability in forecasting results can occur dependingon the quality of the data, the time period used, and the interpolation method applied, among others.Therefore, further research and wider testing needs to be conducted to validate these conclusions.

Financial Factors to Investment Decisions: The Mediating Role of Financial Behavior

This study aims to investigate and analyze the influence of financial literacy, risk perception, and income on investment decisions through financial behavior as a mediating variable. The sampling technique employed in this research is non-probability sampling using the purposive sampling method. The sample consists of 223 respondents from generations X, Y, and Z in the Tangerang region who have previously made investments. The analysis method used is Partial Least Squares Structural Equation Modeling (PLS-SEM). The research findings indicate that financial literacy and income influence financial behavior. However, financial literacy and income do not directly impact investment decisions. Risk perception and financial behavior affect investment decisions. Income affects financial literacy. Financial behavior mediates the influence of financial literacy on investment decisions, and financial behavior also mediates the influence of income on investment decisions

Factors Affecting Investment Decisions in Private Employees in Jabodetabek

This research aims to determine the effect of financial literacy on financial risk tolerance, financial behavior, and investment decisions among private employees in Jabodetabek. Additionally, this research also aims to identify the influence of financial behavior on investment decisions, as well as the mediating role of financial risk tolerance and financial behavior in connecting the influence of financial literacy on investment decisions. The analysis method used in this study is structural equation model (SEM). The research results show that influence, financial literacy has an effect on risk tolerance, financial behavior and Investment decisions. Financial behavior does not have effect on investment decisions. Risk tolerance has an effect on financial behavior and investment decisions, and there is a partial mediating risk tolerance in connecting the influence of financial literacy on investment decisions. However, the research results also show that financial behavior does not play a partial mediator of the influence of financial literacy on investment decisions. This research is expected to provide an empirical contribution to the theory Behavioral Finance is the existence of financial behavior which refers to the actions and decisions taken by individuals related to financial management.

Moderasi Financial Attitude pada Financial Literacy dan Risk Tolerance terhadap Keputusan Investasi

Investment decisions as a decision are called capital budgeting, which is the whole process of planning and making decisions regarding spending with a long-term payback period or more than one year). With the right investment decision, it is hoped that someone can minimize investment risk and maximize the expected rate of return. This study aims to determine the effect of moderating financial attitudes on financial literacy, and risk tolerance on investment decisions in college capital market study group students in Malang City. This research uses quantitative research methods. The population used in this study were students from the Capital Market Study Group, totaling 266 students from 7 (seven) universities in Malang City. The sampling technique uses saturated sampling. Data collection techniques using a questionnaire. The data analysis technique uses Partial Least Square (PLS). The urgency of this research is that it is important for the younger generation to invest early. The results of this study indicate that financial literacy and risk tolerance affect investment decisions. Financial attitude moderates financial literacy with investment decisions. Financial attitudes do not moderate the relationship between risk tolerance and investment decisions.