Investment Decision Behavior Research Articles

Investment Factors and Decision Behavior Affecting to Real Estate Investment Decision

This study examines industry's significance to a nation's economic development and to the expansion of its many stakeholders cannot be overstated. Out of all the sector's stakeholders, the investor is the one who takes on the most risk. When it comes to an investor's propensity to invest in the actual market, certain elements have the biggest impact on their motivation and behaviour, while others have the least. Real estate returns vary depending on the area. This is supporting the expanding field of Real Estate research. The behavioural factor like over confidence, education, and religion was examined, and it was discovered that religious factors impact Indian investors' decisions to invest in real estate. This is advancing the field of research in the real estate industry. The goal of this investigation is to discover the tactics exploited by Indian developers to optimize monetary benefit from multiple real estate investments. A critical element to take into account when making investments in Indian property investment is the financial side. The way of decision for investment are dependent on various variable that differ from case to case, nature of the area, financial capability of investor, risk and policies, which make the behaviour of real estate dynamic through uncertainty and volatility. This makes the decision making for all the investors in real estate difficult. Various investment models present in real estate investment decision making are identified and compared in terms of variable associated, cater to level of risk, assumption, type of decision, metrics and investment types. This research International Journal of Scientific Research in Engineering and Management (IJSREM) Volume: 07 Issue: 03 | March - 2023 Impact Factor: 7.185 ISSN: 2582-3930 © 2023, IJSREM | www.ijsrem.com DOI: 10.55041/IJSREM18222 | Page 2 will serve as a guide to investors, developers and builders. It will provide a prior knowledge to take a decision on investment in commercial properties of offices and retail. Keywords: Financial Study, Real Estate, Investor’s Decision, Real Estate Investment, Real Estate Investment Factor, Real Estate Sector.

Carbon emission trading policy and firm's environmental investment

This paper evaluates the effect of carbon emission trading policy on firm's environmental investment based on the Difference-in-Differences method. The result shows that the establishment of a carbon emission trading system imposes a negative effect on corporate environmental investment. Furthermore, our findings reveal that the reduction in environmental investment arising from carbon emission trading policy is particularly pronounced in non-state-owned enterprises and mature enterprises with large-size. The analysis of potential mechanisms implies that productive investment crowds out the green investment due to the carbon emission regulation. Overall, this study is conducive to the current environmental policy debates by informing policymakers about the implications of investment decision-making behavior of microcosmic enterprises in response to the carbon emission trading policy.

EXAMINE THE ANTECEDENTS OF INVESTMENT DECISION-MAKING BEHAVIOUR IN A DEVELOPING ECONOMY: APPLICATION OF PROSPECT THEORY

The current study investigates the behavioural effect on investment decisions made by investors in the Pakistan Stock Exchange (PSX). Data were gathered through a survey using proven items from past literature as reliable and efficient parameters for collecting this information. Questionnaires were distributed among investors in the stock market using convenience sampling. This study utilized multi-regression techniques combined with structural equation modelling techniques (SEM) using SmartPLS-4.0 for statistical analysis. The present study provides a theoretical framework for exploring investors' decision-making processes in the Pakistani stock market by employing prospect theory. Current research incorporates the affect of information searches on investors behaviour, herding effects, heuristics and market variable. The results demonstrate how heuristics, herding and variables significantly impact decisions made by investors in stock markets, making clear their significance in search results. The study offers practical and theoretical implications by extending prospect theory; its findings also offer practical guidelines for policymakers and practitioners who wish to understand how behaviour impacts financial decisions in a developing economy stock market. Keywords: Heuristics, market variable, herding, Pakistan stock exchange, information searching, investment decision-making behaviour, prospect theory, developing economy.

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.

The Impact of Firm's Unethical Behavior in Investment Decisions Among Young Investors in China.

There is ample evidence that investors respond negatively to firm's unethical behavior. However, researchers cannot explain investors' reactions and the mechanisms of change when faced with firm's unethical behavior. By collecting and analyzing data from questionnaires, this study investigated the effects of firm's unethical behavior on investors' willingness to invest and further focused on different targets involved in unethical events. Moreover, this study explored the roles of firm development stages and the moderation effect of investors' moral support level. It aims to reveal investors' decisions on firm's unethical behaviors in different situations. This study employed a 2 (behavioral ethics: unethical behavior versus normal behavior) X 2 (stages of firm development: startups versus mature firms) X 4 (targets involved in the events: employees, peers, customers, and society) mixed design. Two hundred and fifty-seven participants were finally recruited for final analysis, and then repeated-measures ANOVAs were adopted to assess the valid data collected from 257 participants. The results showed that disclosure of unethical behavior in due diligence reports significantly decreased investors' willingness to invest. However, investor willingness was higher for startups with unethical behavior than for unethical mature firms. Investors' willingness to invest decreased most significantly when evaluating firms with unethical behavior toward employees, followed by society and peers. Their willingness to invest decreased the least when evaluating firms exhibiting unethical behavior toward customers. The level of investors' moral support moderated the above effects, that is, the higher the moral support, the more considerable the decrease in investment willingness in unethical firms. Current results demonstrated that when facing firms with unethical behaviors, investors would make investment decisions after considering the firm's stage of development and the stakeholder of the unethical event. This study provides a valuable theoretical basis for decision-making by government, institutional investors, and firm managers.

Kecerdasan Spiritual sebagai Variabel Moderating pada Pengaruh Narsisme terhadap Perilaku Keputusan Investasi

This research aimed to examine empirically the impact of narcissism on investment decision behavior with spiritual intelligence as a moderating variable. The method used in this research is quantitative. The population of this research is D3 college students of accounting program class of 2020 at Politeknik Negeri Tanah Laut as a State University (PTN) and S1 college students of accounting program class of 2019 and 2020 at Sekolah Tinggi Ilmu Ekonomi Nasional Banjarmasin as Private Universities (PTS). The samples of this research are 195 college students, obtained using the purposive sampling technique. This type of data uses primary data through distributing questionnaires to respondents while path analysis is used to test research hypotheses in order to formulate research results by means of statistical testing through SPSS software and WarpPLS. The result shows that narcissism affects investment decision behavior. This research also finds that spiritual intelligence can not moderate the effect of narcissism on investment decision behavior. These findings help to obtain insight regarding the special concern on approach that can minimize aggressive investment decision behavior which is narcissism. These empirical findings can also be used as benchmarks for similar research, especially in responding to the challenges of the times and the rise of socio-economic phenomena among millennials during the Covid-19 period for universities.

Multisource Heterogeneous Data-Based Behavior Excavation of Investors and Financial Risk Prediction

The investment decision-making behavior of investors refers to the capital purchase behavior of investors in order to achieve a certain purpose or goal. As an individual decision-maker, investors will be affected by various factors when making investment decisions, and the influencing factors may be caused by the outside or generated by themselves. The focus of this paper is to analyze the impact of investors’ past returns on investors’ decision-making based on multisource heterogeneous data. Multisource heterogeneous data can show the results of investors’ behavior evaluation at multiscale and multilevel. Using conceptual deduction and empirical research methods, based on the analysis of investors’ behavior, the financial risk prediction results are proposed. Financial risk prediction mainly analyzes the impact of investment returns on investors’ decision-making from two aspects: individual returns and overall returns. The measurement indicators of investment decisions use investors’ transaction frequency and asset size.

PENGARUH PENGGUNAAN ANALISIS FUNDAMENTAL DAN OVERCONFIDENCE TERHADAP PENGAMBILAN KEPUTUSAN INVESTASI PADA INVESTOR MILENIAL DI BLITAR

The purpose of this study is to determine the effect of fundamental analysis and overconfidence behavior in investment decisions for millennial investors in Blitar. This study uses quantitative research with data collection techniques through questionnaires distributed to investors in the Blitar area. Using the purposive sampling technique, the sample taken in this study was 73 millennial investors in Blitar. Method of analysis using classical assumption test, multiple linear regression analysis, and hypothesis testing. The results of this study indicate that fundamental analysis has no significant effect on investment decision making for millennial investors in Blitar, overconfidence has a significant effect on investment decision making on millennial investors in Blitar, and simultaneously fundamental analysis and ovce have a significant effect on investment decision making on millennial investors in Blitar.erconfiden

Effect of financial literacy, income and years of service on investment decision behavior

The purpose of this study was to explain the effect of financial literacy, income and years of service on investment decision behavior in employees. Research respondents were employees of PT Bank Pembangunan Daerah Bali Renon Branch with a sample of 76 people. The sampling technique in this study used random sampling. The data were analyzed using the PLS (Partial Least Squares) technique. The results of this study indicate that financial literacy and income have a positive effect on investment decision behavior, but tenure has no positive effect on investment decision behavior. This is because in the banking industry, all employees, both those who have just entered the workforce or those who have worked together for a long time, receive training and obtain information regarding financial developments and current financial conditions. In other words, the understanding of financial literacy and employee behavior is almost the same.

The Effect of Financial Literature and Behavior on Individual Investment Decision Behavior

The Effect of Financial Literature and Behavior on Individual Investment Decision Behavior

Does COVID-19 really make people risk aversion in investment decision-making?

The economic fallout from COVID-19 pandemic changes individuals’ investment perceptions and behaviors in a tremendous way. Consequently, investment decision-making has been affected as people have to adjust to the new environment. This study aims to study whether COVID-19 really make people risk aversion due to the economic slowdown. Our empirical results are analyzed from household finance data in U.S in July 2021. It is found that COVID-19 proximity, income, and occupation are positively associate with risking taking in investment decision-making, while age and family size are not. This study contributes to the newly emerged body of knowledge on post pandemic investment decision-making and risk behavior analysis and provide implications for financial investment institutions.

FINANCIAL LITERACY ON INDIVIDUAL INVESTMENT DECISIONS THROUGH INCOME PERSPECTIVES AND SOCIODEMOGRAPHIC FACTORS ON UNMARRIED EMPLOYEES IN DENPASAR CITY

The purpose of this study is to explain the effect of financial literacy level and sociodemographic factors on individual investment decision behavior. Research respondents are unmarried employees in Denpasar City with a sample of 83 people. Determination of the sample using nonprobability sampling with an accidental sampling approach. Data were analyzed using the Multiple Linear Regression Analysis technique. The results of this study indicate that the level of financial literacy has a positive effect on the behavior of individual investment decisions, there are differences in the effect between males and females on the behavior of individual investment decisions and income has a negative effect on the behavior of individual investment decisions.

Managerial ability, internal control and investment efficiency

This paper discusses the relationship between managerial ability]and inefficient investment, as well as the impacts of internal control on them by using information asymmetry and agency theory based on data of Shanghai and Shenzhen A-share listed companies over 2012–2016. (i) Managerial ability alleviates the under-investment caused by information asymmetry but aggravates the over-investment caused by agency problem; (ii) Internal control restrains the relationship between managerial ability and over-investment but promotes the relationship between managerial ability and under-investment. (iii) There is a significant positive correlation between managerial ability and over-investment and internal control has a significant suppressed effect for state-owned firms. (iv) There is a significant negative correlation between managerial ability and under-investment and internal control has a significant promote effect for private-owned firms. (v) Where the firm’s chairman and the general manager are the same person, internal control has little effect on the relationship of managerial ability and over-investment. This study contributes to establish comprehensive analysis framework of inefficient investment and has some implications for corporate investment decision-making behavior.

IMPACT OF LOCUS OF CONTROL ON INVESTMENT BEHAVIOUR: A SEGMENTATION APPROACH

Investment plays a vital role in a developing country such as India, as it provides the necessary funds for undertaking productive activities to be circulated in the economy. Savings are our country's largest source of investment. Investments are subject to the individual’s attitudes, beliefs and perceptions. As a result, the attitudes and expectations of investors have a major impact on their investment behaviour. Locus of Control is one of the most important factors that affect individual’s decision-making behaviour. Locus of Control is people's assumptions about what causes their lives to have good and bad outcomes (Rotter, 1966). It is said that there is internal and external LOC. Individuals with internal LOC assume they control their own destiny, whereas individuals with external LOC relate their experiences to destiny, luck or chance. Consequently, LOC has a great influence on an individual's investment decision-making behaviour. As a result, this study attempts to assess the LOC of an individual investors, segment them based on their level of internal and external LOC, and also to understand the impact of locus of control on the savings and investment behaviour of individual investors. The study revealed that most of the investors in Kerala were moderates and the locus of control of an individual investor affected their savings and investment behaviour

The Relationship among Overconfidence, Economic Expectation, Social Factors and Investment Decision Making Behavior with the Mediating and Moderating Effects

The current study investigates the relationship among the overconfidence (OVC), economic expectations (EE), social factors (SOF) and investment decision making behavior (IDMB) with the mediating and moderating effect. The data was collected from the investors of Pakistan Stock Exchange (PSX) that were selected through convenience sampling technique. The results of Structural Equation Modeling (SEM) showed that OVC, EE, SOF have a positive and significant relationship with IDMB. On the other hand, OVC, EE, SOF also has a positive and significant relationship with the information search (IS) while IS did not have direct effect on the IDMC. In other words, the IS also did not have mediating effect among the relationship of OVC, EE, SOF and IDMB. The indirect effect further indicated that financial literacy (FL) has a significant moderating effect among the relationship of OVC, EE, SOF and IDMC. Therefore, this moderating effect could be considered a contributions of the study. The research limitations and future directions had also discussed at the end of the study.

What explains the investment decision-making behaviour The role of financial literacy and financial risk tolerance

What explains the investment decision-making behaviour The role of financial literacy and financial risk tolerance

What explains the investment decision-making behaviour The role of financial literacy and financial risk tolerance

Investment decision-making behaviour has a significant role in the financial growth of individual investors. This study investigates the impact of financial literacy on investment decision-making behaviour by taking mediating role of financial risk tolerance. The study employed quantitative research design and multi-stage random and convenience sampling. A survey questionnaire was used to collect data from 384 registered individual investors of Pakistan Stock Exchange (PSX). Structural equation modelling (SEM) was used to test the relationships between the constructs. Results showed positive and significant impact of financial literacy on investment decision-making behaviour and financial risk tolerance among individual equity investors. Similarly, financial risk tolerance mediated the relationship between financial literacy and investment decision-making behaviour. The study suggests measures to policy makers for improving financial literacy among individual investors. It also proposes significant functional insights for stockbrokers, investment advisors, and financial managers through examining the investment decision-making behaviour of individual equity investors. This study serves as a guideline for academia to further develop/improve the financial literacy of future investors.

Backers investment behavior on explicit and implicit factors in reward-based crowdfunding based on ELM theory.

The aim of this study is to identify the dynamic explicit and implicit information factors which displayed on the webpage of platforms that influence backers’ investment decision-making behavior. We analyze the connections among these factors by collecting the longitudinal dataset from reward-based crowdfunding platform. Based on ELM model, we establish Fixed Estimation Panel Data Model respectively according to explicit and implicit factors and take Funding Status (crowdfunding results) as the moderating variable to observe the goal gradient effect. Results indicate that most variables in the central route affect backers' investment behavior positively, while most variables in the periphery route have a negative impact on backers' investment behavior. The Funding Status has a significant negative moderating effect on the explicit variables, and has no significant moderating effect on the implicit information variables of the project. In addition, we upgrade the econometric method used by previous scholars, which could improve the accuracy of the FE model. Furthermore, we find strong support for the herding effect in reward-based crowdfunding and the intensity tends to decrease before the funding goal draws near.

Influence of investor sentiment and its antecedent on investment decision-making using partial least square technique

PurposeThe purpose of this paper is to determine whether individual investor sentiment and its factors influence investment decision-making behavior in the Indian stock market. The study contributes to the novel conceptual framework that integrates the impact of investor sentiment and outlines the role of its factors (herding, media factor, advocate recommendation and social interaction) during the investment decision-making process.Design/methodology/approachIn this paper, data were collected using a structured questionnaire survey from Indian individual investors. It uses self-reported sources of information collected via a survey of individual investors and estimated the linkage via path modeling. The collected data were analyzed using partial least square structural equation modeling to examine the relationship between the construct, namely, herding, media, advocate recommendation and social interaction with investor sentiment and investment decision-making.FindingsThe study shows that herding, media factor, advocate recommendation and social interaction significantly and positively influence the investor sentiment. Among all the factors, social interaction has the lowest influence on investor sentiment. The study also reveals that investor sentiment has a positive impact on investment decision-making.Practical implicationsThe study provides valuable insights for the individual investors, financial advisors, policymakers and other stakeholders. Knowledge of behavioral finance would enhance the decision-making capabilities of individual investors in the stock market. Thus, the study calls for the need to increase awareness among Indian investors about behavioral finance and its usefulness in investment decision-making. The paper also sheds light upon the influence of investor sentiment and its antecedents on investment decision-making. The study confirms that the investor relies on their sentiment while making investment decisions. Hence, the stakeholders in the stock market should focus on investor sentiment and other psychological aspects of individual investors as well.Originality/valueThere are very few studies that deal with the behavioral aspects of individual investors in an emerging market context. The study mainly focuses on the antecedent of investor sentiment and its influence on investment decision-making in the Indian stock market. To the best of authors’ knowledge, the present study unique nature that examines the impact of the antecedent of investor sentiment which was not explored in the Indian context and investment decision-making of individual investors.

Financial Literation and Investment Decision Behavior of Entrepreneurs in Bali

This study uses three dimensions of financial literacy, namely financial knowledge, financial behavioral and financial attitude. This study examines the effect of financial literacy on investment decision behavior. This research takes data from entrepreneurs in Bali, Indonesia. Bali has an entrepreneurial ratio to population that is higher than the national average. The regression results show (1) financial knowledge does not affect investment decision making, (2) financial behavior does not affect investment decision making, (3) financial attitude has a positive effect on investment decision making. These results indicate that the financial knowledge and how someone behaves about finance does not have an impact on investment decisions as an entrepreneur. Entrepreneurs in our sample may become an entrepreneur even though does not have sufficient financial knowledge and has not shown good financial management behavior.