Affect Investment Decisions Research Articles

May Financial Literacy, Risk Tolerance, and Demographic Factors Influence the Investment Decisions of BCA Malang Customers?

Purpose – This research aims to show empirically that financial literacy, risk tolerance, and demographic factors directly influence the investment decisions of Bank BCA Malang, Indonesia, customers.
 Methodology/approach – The purpose sampling method in this study has specific criteria in sampling, namely customers who are at least 17 years old, have invested at least one year, and have their income. This study shows the direct impact of using SEM-PLS analysis to demonstrate the dependence of independent variables on investment decisions. 
 Findings – The analysis results show that financial literacy does not affect investment decisions. Furthermore, the results of the hypothesis testing analysis carried out explain that risk tolerance affects investment decisions. Finally, the hypothesis testing analysis results explain that the variables of demographic factors do not affect investment decisions.

Conscientiousness and Performance: The Influence of Personality on Investment Decisions

We extract proxies for trader conscientiousness from plain text to explain the cross-section of individual and institutional trader performance. The literature claims conscientiousness to be a main determinant of workplace performance. We employ measures like text length, error frequency, sentence simplicity, and lexical diversity to construct a conscientiousness index. Our findings suggest that more conscientious traders outperform their peers on a risk-adjusted basis. This implies that personality affects investment decisions. Our data stems from a web-based platform that gives individuals the opportunity to set up small investment funds other users can invest in.

Prominent Behavioral Biases Affecting Investment Decisions: A Systematic Literature Review with TCCM and Bibliometric Analysis

Prominent Behavioral Biases Affecting Investment Decisions: A Systematic Literature Review with TCCM and Bibliometric Analysis

Digital Platform, Financial Literacy and Motivation on Generation Z's Decision to Invest in Islamic Stocks: A Structural Equation Modelling Analysis

This study aims to determine the relationship between the measurement and structural models of digital platform, financial literacy, motivation, and Generation Z's decision to invest in Islamic stocks. Furthermore, this study uses Structural Equation Modeling (SEM) analysis and involves more than two variables, with 123 respondents from West Nusa Tenggara, Indonesia, who actively invest in Islamic stocks, providing accurate information through multivariate analysis. The study found that digital platforms and motivation have a significant impact on Generation Z's decision to invest in Islamic stocks, while financial literacy has an insignificant effect. However, the analysis results indicated that financial literacy has indirectly motivated them to invest in these types of stocks through motivation. This suggests that digital platforms and motivation play a crucial role in investment decisions. Therefore, service providers need to continuously develop digital applications as transaction tools to cater to the needs of Generation Z. Additionally, improving financial literacy is crucial to increasing people's investment skills, even though it may not directly affect investment decisions.

Human Capital Factors of Management Team in Venture Capital Decision

Venture capital provides important funding and management experience support for high-tech start-ups. But due to the high risk, final decisions of this investment can only be made after investors evaluate these companies based on observable metrics. Among all the metrics, human capital plays an important role in this evaluation-decision process. Using literature research methods, this paper selects four typical human capital factors of experience, education, passion and gender, and analyzes the mechanism of how they affect investment decisions of these factors. The results have drawn conclusions as follows: First, information on experience, education, and passion conveyed to investors can remove the uncertainty of these firms, while gender factor directly affects decision outcomes. Second, the impact of experience, education, and passion on firm evaluation is complex, which depends on the specific situation. Third, compared with ordinary members of the team, investors pay more attention to the human capital of business leaders.

Quantifying Behavioral Biasness in Investment Decisions with Special Reference to Uttar Pradesh

Behavioral biases haven't gotten the attention they merit, especially in the Indian context. Despite the abundance of information on behavioural finance, only a few academic research has sought to examine behavioural biases across different demographic groups. This research tries to address this lacuna in the literature. The present research work aims to investigate and quantify the behavioural biases that influence individual investors' investment decisions. The primary data was collected through a structured questionnaire from five prominent cities in the most populated state of India, i.e., Uttar Pradesh. The data was collected from 487 individual investors with the help of their financial advisors and brokers. The empirical research work revealed that eight listed biases affect investment decisions by nearly 82%. The outcome as a formal bias assessment instrument was supported by exploratory factor analysis (EFA) encompassing eight behavioural biases measured via 47 statements. The present research contribution, provides a formal assessment tool and further helps the researchers to uncover behavioral biases and develop de-biasing strategies. Academicians, financial advisers, practitioners, and economic psychologists are invited to utilize the instrument in order to further confirm its efficacy.

Factors Affecting Investment Decisions of Employees Working on Financial and Non-Financial Sectors: A Case of Pokhara Metropolitan City, Nepal

The emergence of the financial market favorably influences the economy. The choices of an individual engaging in the financial market have a crucial part in setting the market trend, which subsequently affects the economy. This research seeks to examine the variables impacting the investment choices of people functioning in financial and non-financial sectors. The research employs a social survey design, based on 280 samples obtained by a structured questionnaire employing a convenience sampling approach. The study was restricted to the Pokhara metropolitan city of Nepal. Descriptive Statistics, Chi-square test, t-test, ANOVAs, Confirmatory Factor Analysis and Structural Equation Modeling were utilized to fulfill the study goals. The study demonstrates that there is no substantial difference between personnel working in the financial and non-finance industries on herding, market, heuristic and demographic component. However, people working in the financial industry examine more economic aspects and the total investment performance is greater for employees working in the financial sector. Further, the research reveals that self-confidence, market information, the recommendation of professionals, minimization through portfolio diversification and high-income level increases in interest in investment were the significant influential factors affecting investment decisions of an employee working in financial and non-financial institutions. The CFA establishes a significant link between observable variables and their fundamental constructs. The path analysis demonstrates that Market, Herding, Knowledge and Economic factors has a favorable influence on investment choices. The regulatory authority and related institutions should equip investors in respect of both economic and behavioral elements to make a smart investment choice.

Behaviour Biases and Investor Investment Decisions in Pakistan Foreign Exchange Market

Many investors in developing countries, including Pakistan, make incorrect decisions due to behavioral biases. Thus, this study examines the relationship between behavioral biases and investment decisions and the moderating role of “financial literacy on investment decisions.” Using a predeveloped questionnaire, we collected 419 responses by focusing on the respondents who trade extensively in the foreign exchange market. The data analysis includes descriptive analysis, correlation, reliability, validity, and hypotheses testing using Smart PLS. The study found herding bias, overconfidence, and representativeness significantly affect the investment decision. Risk tolerance insignificantly affects investment decisions. We also found that financial literacy has a moderating effect on investment decisions. The study recommends that policymakers arrange seminars and workshops for investors on financial literacy. Such measures may reduce the investors’ decisions based on behavioral biases.

Key Financial Factors Influencing Investment: Profitability, Liquidity, Leverage, Size, and Stock Price

This study examines the influence of profitability, liquidity, leverage, size, and stock prices on investment decisions in the food and beverage industry, focusing on companies listed on the Indonesia Stock Exchange between 2016 and 2019. The purposive sampling method was employed, resulting in a sample of 13 food and beverage companies. Multiple linear regression analysis was used to analyze secondary data. The findings reveal that profitability, liquidity, leverage, size, and stock prices significantly affect investment decisions in the food and beverage sector during the study period. These results imply that investors consider these financial factors when making investment decisions, highlighting the importance of assessing profitability, liquidity, leverage, size, and stock prices for effective investment strategies in the global food and beverage industry.
 Highlights:
 
 Profitability's Impact: The study reveals that profitability significantly influences investment decisions in the food and beverage industry.
 Liquidity Matters: The findings emphasize the importance of liquidity in shaping investment decisions within the food and beverage sector.
 Leverage and Decision Making: The study highlights the effect of leverage on investment decisions in food and beverage companies, providing valuable insights for investors.
 
 Keywords: Profitability, Liquidity, Leverage, Size, Stock Price

Critical Factors Affecting Investment Decisions of Individual Investors: A Case of Stock Market in Ho Chi Minh City, Vietnam

The stock market is a vital capital channel for the economy and a potential investment channel for investors. Thus, the study explored the key factors affecting individual investors' stock investment decisions in the Ho Chi Minh City stock market. Based on a survey data set of 700 individual investors of securities companies in Ho Chi Minh City, the authors used structural equation modelling (SEM) and SPSS 20.0, Amos software. The results empirically identified five factors affecting individual investors' investment decisions: profitability and stability, growth potential, behavioural finance, market psychology, and macro-environmental factors. The article's findings were to find out five key factors that had a substantial impact on the investment behaviour of individual investors and were significant statistically. This result was a scientific basis to propose practical personal investment implications, primarily focusing on enhancing effective investment. Finally, the study offered recommendations to improve investment laws and policies to attract domestic and foreign stock market investors.

Analysis of Factors Affecting Investment Decision with Growth Opportunities as a Moderation Variable in Basic Industry and Chemicals Sector Companies Listed on Indonesia Stock Exchange in 2016 – 2020

Analysis of Factors Affecting Investment Decision with Growth Opportunities as a Moderation Variable in Basic Industry and Chemicals Sector Companies Listed on Indonesia Stock Exchange in 2016 – 2020

Analysis of Factors Affecting Investment Decision with Growth Opportunities as a Moderation Variable in Basic Industry and Chemicals Sector Companies Listed on Indonesia Stock Exchange in 2016 – 2020

This study focuses on examining how the effect of profitability, debt policy, investment opportunity set and firm size with growth opportunity as a moderating variable on investment decisions. This study has a population of basic and chemical industrial sector companies listed on the Indonesia Stock Exchange for the period 2016 – 2020. The research data used is secondary data with an observation period of 5 years. Determination of this sample using purposive sampling with several criteria. Thus, obtained 37 samples of companies used in this study. This study also uses Moderation Regression Analysis (MRA) as the method of analysis. The results of this study are profitability and firm size have a significant and positive effect on investment decisions, while debt policy and investment opportunity sets have a significant negative effect on investment decisions. Growth opportunity can moderate the relationship between debt policy and investment decisions, but on the other hand growth opportunity is not able to moderate the relationship between profitability, investment opportunity set and company size on investment decisions.

Retail Investor’s Investment Decision Criterion to Invest in IPOs - A Study

Initial Public Offering is a kind of public offering by the companies to generate the funds from primary market for the first time. Individual investors are becoming rational to investment in Initial Public Offerings (IPOs) to gain from the listing and hold for short or long term profits. They use different strategies to gain from the IPOs. The present study examines the retail investor’s criterion to invest in IPOs. For this purpose, a questionnaire was developed and administered to 724 sample respondents in Hyderabad and Secunderabad city. The responses are processed in SPSS - 26 version and applied few statistical tools i.e., descriptive statistics, ANOVA and Factor Analysis for interpretation of the results. The present study reveals that retail investor’s investment decision is based on the quota of equity shares available to retail investors in IPO, Equity Participation by Financial Institutions & Foreign Institutional Investors and followed by Price band. Further, the researcher founds that there is a significant variation in means among retail investors on Industry and Sector that Company Issues the IPO and Terms of Issue related to IPOs. The study concludes that, most of the investor’s investment decisions are based on market attractiveness and corporate image. Further the study may be useful to conduct the research in the following directions, to measure the investor’s perception and behavior towards in participation of IPOs, Factors affecting investment decision of retail investors in different geographical areas in India.

IMPLIKASI STRUKTUR KEPEMILIKAN TERHADAP NILAI PERUSAHAAN DENGAN KEPUTUSAN KEUANGAN SEBAGAI VARIABEL INTERVENING (SEKTOR MANUFAKTUR BEI)

The value of the company is one of the shareholders reference before investing in a company and the company's value can not be separated from the influence of financial decision of by the owner of the company. The aim of the research was to find out the implication of ownership structure on companies’ value with financial decision as intervening variable in manufacturing companies listed in Indonesia Stock Exchange. The samples consist of 34 manufacturing companies listed in Indonesia Stock Exchange during the period of 2010-2014. The research method used structural equation model (SEM) with the help of software AMOS 16,0. The Result of the research indicate that ownership structure affects funding decision, deviden policy, and companies’ value, but it does not affect investment decision. Investment decision, funding decision, and deviden policy affect companies’ value. Furthermore, investment decision, funding decision and deviden policy can function as intervening variable in the effect of ownership structure on companies’ value.

Pengaruh Promosi dan Kepuasan Pelayanan terhadap Keputusan Berinvestasi Melalui Persepsi Potensi Investasi (Studi Di Provinsi Kalimantan Selatan)

ABSTRACT This study aims to determine whether investment exhibitions, investment forums, information of investment potential on websites, information of investment potential on billboards, and service satisfaction have a direct effect on investment decisions, and indirectly affect investment decisions through perceptions of investment potential. This research is a quantitative research using SmartPLS 3 with Structural Equation Modeling (SEM) method, the research sample is investors who invest their capital in South Kalimantan Province continuously for the last three years and recorded on several work projects totaling 86 respondents. Based on the analysis carried out, it was found that investment exhibitions, investment forums, information of investment potential on websites, and information of investment potential on billboards which are part of investment promotion activities were not able to influence investment decisions, the variable that really affects investment decisions is perception investment potential, and service satisfaction variables can affect investment decisions only if mediated by the perceptions of investment potential variable. Keywords: Promotion, Service Satisfaction, Investment Decision, Perception of Investment Potential

Pengaruh Literasi Keuangan, Illusion of Control dan Overconfidence terhadap Keputusan Investasi pada Investor di Tulungagung

This study aims to analyze financial literacy, illusion of control and overconfidence on investment decisions for investors in Tulungagung. This research uses accidental sampling technique with a sample of 40 respondents from novice investors in Tulungagung. The results of this study indicate that the variables of financial literacy and overconfidence simultaneously affect investment decisions. Respondents belong to the group of investors who understand financial concepts well and feel confident. Meanwhile, the illusion of control variable has no effect on investment decisions. Respondents are included in the group of investors who are categorized as having higher financial literacy. The conclusion of this study is that financial literacy has a significant positive impact on investment among investors in Tulungagung.
 Keyword: illusion of control, investation, financial literacy, overconfidence

What Affects Investment Decisions among Undergraduates during COVID-19 Pandemic?

What Affects Investment Decisions among Undergraduates during COVID-19 Pandemic?

Faktor-Faktor yang Memengaruhi Keputusan Investasi melalui Kebijakan Dividen Sebagai Variabel Mediasi pada Perusahaan Property dan Real Estate Yang Terdaftar Di Bursa Efek Indonesia

This study aims to analyze the factors that influence investment decisions by using dividend policy as an intervening variable. The factors referred to in this research are fundamental factors which include profitability, liquidity, leverage, and cash flow. The research uses the path analysis method. The object in this study uses property and real estate companies listed on the Indonesian Stock Exchange during 2017 to 2021. By using the purposive sampling method, there are 16 companies that eventually become samples in this study. The results showed that profitability and cash flow had an effect on dividend policy, while liquidity and leverage had no effect on dividend policy. The results of the analysis of investment decisions show that directly, profitability, cash flow, and dividend policy affect investment decisions, while liquidity and leverage have no effect on investment decisions. Finally, dividend policy is only able to mediate the effect of liquidity and leverage on investment decisions, while dividend policy is not able to mediate the effect of profitability and cash flow on investment decisions.

Factors Affecting Millennials' Perspective on Investment Decision Behavior during the Pandemic


 Investor decision behavior in any pandemic, Covid-19 always goes through rationally. In reality or practically, the investment decisions made by millennials (generation Y) are not always rational. The sole purpose of the topic under study is to investigate a spectrum of millennial (generation Y) investors’ behavioral factors that affect investment decisions during a pandemic. This study adopted secondary sources for data collection. The secondary data is gathered through published research papers in peer-reviewed journals, scholarly journals, magazines, news, and books, as well as published data from the government. The major findings reveal that millennials (generation Y) financially deal with more confusion and disagreements when dealing with various patterns of informed conduct or behavior in contrast to other generations. Also, if taken a step further, the outcomes imply a much more important aspect regarding investors' behavior, financial investments, and economic growth: that they were all affected by the Covid-19 pandemic. It caused anxiety and uncertainty among players in the market. Behavioral factors and heuristics like the overconfidence and attitude effect, and herding factors are considered to have also influenced investors' decisions. Furthermore, the market behavior factors of price change, market information, past trend, customer preference, and underlying stock fundamentals have an impact on individual investor decision behavior.

Keputusan Investasi Digital dan Transaksi Non Tunai Investor Muslim

Muslim investors invest for financial gain in the future. The current investment decision determines the profit or loss received. The purpose of the study was to determine how much financial literacy and risk tolerance influence in determining digital investment decisions and to find out how much financial literacy and risk tolerance influence in conducting non-cash transactions during the covid-19 pandemic for Muslim investors. The research was conducted on Muslim investors in Sukoharjo Regency. Determination of the sample using purposive sampling with the number of respondents as many as 110. Data collection was done using a questionnaire distributed to Muslim investors who have done investment activities. Testing the model using Path Analysis with SmartPLS Software by performing Individual Item Reliability Test, Internal Consistency Test, and Discriminant Validity Test. The test results show that the financial literacy of Muslim investors has no effect on investment decisions and non-cash transaction decisions. Meanwhile, risk tolerance affects investment decisions and non-cash transaction decisions. The investment decisions of a Muslim are not based on their financial knowledge but on the current economic situation.