Factors Affecting Investment Decisions Research Articles

An integrated generalized TODIM model for portfolio selection based on financial performance of firms

Multi-criteria decision-making (MCDM) models are well-suited for solving portfolio selection problems. Diversified financial indices and complex subjective preferences are important factors affecting investment decisions within the MCDM framework. Therefore, this study adopts a well-known behavioral MCDM model called generalized TODIM (TOmada de Decisão Iterativa Multicritério) for portfolio selection based on the financial performance of firms. First, a multidimensional financial evaluation index system is proposed for financial performance evaluation, which is the most appropriate approach for stock investment within a long-term horizon. Second, features are selected from the financial ratios using affinity propagation clustering (APC). Through the APC algorithm, financial ratios with a strong influence on stock evaluation can be obtained. Third, a generalized TODIM method with entropy weight is used to calculate the dominance relation between stocks and reflect investors’ bounded rational behaviors. Fourth, an extended mean–variance multi-objective portfolio selection model that considers financial and stock market performance is constructed. The compromise solution is used when solving the multi-objective optimization programming. Finally, a case study on medical stock investment in the Chinese stock market is examined to recommend the optimal portfolio allocation for investors. Sensitivity and comparative analyses are performed to demonstrate the robustness, effectiveness, and superiority of the proposed methodology.

Factors Affecting Investment Decisions of EU Investors in Vietnam

Factors Affecting Investment Decisions of EU Investors in Vietnam

Factors Affecting Investment Decisions of EU Investors in Vietnam

EU investors were present in 18 out of 21 important economic sectors, focusing on manufacturing and processing industry 36.3%, refining and petrochemical 11%, textiles and garments 6.94%, electronics 6.4%, food processing 5.6%, cars and means of transport 5.2%; production and distribution of electricity and gas 20.7%, real estate 11%, information and communication 6.6% (GSO, 2020); contributed significantly to Vietnam’s economic growth. On the basis of that, attracting FDI is a subjective activity of the investee, that is, the investee will perform activities affecting the factors of the investee to increase the attractiveness of the investor. foreign investor. Thus, in order to effectively attract FDI from EU investors into Vietnam associated with the characteristics of each investor, it is necessary to assess the degree of influence of factors on FDI attraction, which is also the factors affecting the decision of EU investors. This study uses an exploratory factor analysis (EFA) model to analyze the factors affecting the investment decisions of EU investors in Vietnam, thereby proposing solutions to enhance the attractiveness of EU investors effective FDI from the EU into Vietnam in the coming time.

Factors Affecting Investment Decision in Nepal

This article, Factors Affecting Investment Decision in Nepal, has focused on the macroeconomics factors (gross domestic product, interest rate, and government expenditure) affecting the investment decision during 1975/762017/18. Based on time-series dataata macro level, this study employed Engel Grangerco integration test, as well as error correction model, investigated the short-and long-run causal relationship between gross investment and the factors influencing the investment decision of the investors, and found a statistically significant relationship between gross investment and macroeconomic variables. Furthermore, the coefficient of error correction term (-0.90) implied around a 90percent conversion to the equilibrium, showing a steady, long-run relationship between regress and regressors.

Does policy cognition affect livestock farmers' investment in manure recycling facilities? Evidence from China

An increase in living standards and dietary changes have induced a rapid growth in the livestock sector worldwide, which has led to considerable environmental damages due inappropriate disposal of livestock manure. Using primary data from a field survey of cattle farmers in China, this paper empirically examines the impact of policy cognition on livestock farmers' investment in manure recycling facilities. The impact is tested through the multiple mediator model to accommodate two potential mediating mechanisms, which are the agricultural cooperative membership and land leasing. Three conclusions arise. First, policy cognition has a significant positive impact on both the diversification and amounts of farmers' investment in manure recycling facilities. Second, membership in agricultural cooperatives and participation in land leasing are two important mediating mechanisms for policy cognition to affect farmers' investment decisions on manure recycling. Finally, for the two mediating variables, leasing additional agricultural land promotes more investment in manure recycling facilities, but less in investment diversification, while cooperative membership has the opposite impact. This study contributes to three areas of literature on the factors affecting investment decisions, the mediating effects of policy cognition and the investment in non-production related assets. Regarding policy implications, we identify the importance of promoting policy awareness and agricultural cooperatives among livestock farmers, as well as developing land lease markets in agricultural regions in promoting investment in manure recycling facilities.

Modeling Asset Pricing Using Behavioral Variables: Fama-Macbeth Approach

Investors generally make decisions based on risk and stock returns, and their decisions are influenced by two factors, namely macroeconomic variables and microeconomic variables. The behavioral factors affecting investment decisions are investigated in the area of behavioral finance. In other words, behavioral finance focuses on specific human behavior attributes and their utilization in asset pricing. Behavioral asset pricing is the result of applying behavioral finance theories within traditional asset pricing theories. Although there are many asset-pricing models, due to their weaknesses and incompleteness as well as the necessity of investigating behavioral factors, this study attempted to model asset pricing using behavioral models.The population of the study included all listed firms in Tehran Stock Exchange over the years 2008 to 2018, and the sample was selected through systematic elimination of the population. Given these conditions, 141 firms were selected as the sample. The hypotheses were then tested by designing multivariate regression models.The results showed that using Fama-Macbeth approach, accounting information risk, investors’ trading behavior, and investors' sentiments had a significant and direct impact on firms’ stock returns.Thus, it is argued that behavioral variables can play a significant role in Modeling Asset Pricing.

On Spatially Dependent Risk Preferences: The Case of Nigerian Farmers

Rice farmers’ attitudes toward risk-taking have been identified as one of the factors affecting investment decisions and wealth accumulation. While existing studies have identified the socio-economic factors driving farmers’ risk attitudes, spatial variables that may correlate with decisions are often ignored in the risk models due to difficulties in measurement. We studied unobserved spatial heterogeneity in farmer’s risk preferences by incorporating spatial dependency into a farmer’s risk preference model. We used data from a survey conducted with Nigerian farmers between March and May 2016. The survey collected information on 2016 farmers’ socio-demographic characteristics and farm attributes including its geographical location as well as information on the quality of roads. In addition, a set of experiments design to elicit famers’ attitudes toward risk were conducted. We estimated a spatial autoregressive model using the instrumental variable method. We found that unobserved spatial heterogeneity (e.g., soil, topographic farmers emulating each other) was present in farmer’s risk preferences along with socio-demographic variables such as age, gender, marital status, and religion and farm characteristics such as farm size and road quality. These results are relevant for policy decision-making processes.

“A study of factors affecting investment decisions in India: The KANO way”

Behavioural finance is emerging field with wide scope. In the absence of enough of literature in Indian context, understanding of individual investor’s behaviour towards stock market by the policy makers, institutions, market infrastructure institutions, and companies find it challenging. The behaviour is caused by the reaction to different factors/attributes. In order to understand the factors that influence the investor’s investment decision a study was undertaken in Indian stock market consisting of 10 sectors with 30 companies listed on BSE-30 SENSEX. A research instrument consisting of 14 attributes was designed and sent to 2100 respondents. 467 responses were collected over a period of 6 months and KANO model was developed to classify the information into ‘must be’, ‘linear’, and ‘delight’ attributes. It was found that ‘must be’ attributes include condition of financial statements, current economic indicators, and the result of technical analysis and ‘insider information’ is a ‘delight’ attribute. The study revealed the factors are affecting the decision making of investors. The consideration of factors for investment decision making is sector specific and helps various parties in understanding the investment decision behaviour of investors’.

PSYCHOLOGICAL FACTORS AND INVESTMENT DECISIONS IN THE NIGERIA CAPITAL MARKET

This study examines Behavioral Factors and Investment Decision Making in the Nigerian Stock Exchange (NSE). Thus, the research question is what are the psychological factors affecting investment decisions in the Nigerian capital market. A structured questionnaire was used in collecting data and it was able to collect data from 75 investors with the application of a convenient sampling method. Using overconfidence bias, availability bias, conservatism, and herding effect to define the most important behavioral element affecting investment decision making by investors in the Nigerian. Multiple regression analysis was used as the key methodological method for evaluating the research hypothesis, whereas the internal consistency of the questionnaire calculated from Cronbach's alpha on all variables showed values greater than 0.7 with a sufficient level of reliability. The primary beneficiary group would be the buyers on the stock market who would be educated enough about the effect of their own behavioral influences on their stock market decision making. The knowledge would be useful in making optimal investment decisions and avoiding unfavorable decisions to increase their resources. In turn, it will be helpful to policymakers and stock market regulators to help them understand the position of behavioral influences inherited in consumer decision-making and that may be associated with the need for stock market brokers to update their customer's trading practices to a higher level. The findings of this study suggest that overconfidence, availability bias, and herding impact demonstrated a positive significant relationship with NSE investment decision-making except conservatism which showed a negative relationship with investment decision-making but at 0.01 levels statistically significant. On the basis of the results, it can be generalized that the most prevalent factors affecting investor investment decision taking in NSE are overconfidence, availability bias, and herding influence.

Factors Affecting Investment Decision Among Indians

Sector-specific study of investment decision-making variables aids several stakeholders in comprehending investors' behavior. After considering important factors such primary safety, availability of funds, reliability of returns, flexibility of ownership, etc., investors are prepared to put their money to work. But, the tastes and actions of each investor will determine which of these elements they prioritize. This research contributes significantly to the functioning of investing behavior.

Factors Affecting Investment Decision in the Saudi Stock Market

This research aims to explore the factors influencing the decision of investment in the Saudi Arabian stock market which are the following factors: the analysis and financial ratios, the history and reputation of the company, dividends, date of the company’s founding, company size, recommendations and opinions of analysts, the nature of the company's activity) and its impact on investment decision. A questionnaire has been used as a research tool, the study group consisted of all individuals investing in the Saudi stock market in 2018, and the sample was selected in an available way which is one type of non-random sample, with a total of 128 valid questionnaires for analysis out of 130 questionnaires. The research on its theoretical side touched on the efficiency and importance of the market, the types of financial markets, the formation and evolution of the Saudi stock market, the period of collapse of the Saudi stock market, the post-collapse Saudi stock market. While the tests of reliability and stability (Cronbach's alpha coefficient), frequencies, percentages, arithmetic averages and standard deviation, (T- test) for differences between two independent samples (independent sample T-test), one-way analysis of variance (one-way ANOVA) were used in the practical aspect of the research. The research has found an effect of the following factors: analysis and financial ratios, the history and reputation of the company, dividends, date of the company’s founding, company size, recommendations and opinions of analysts, the nature of the company's activity) on investment decision.The most influential factor on investment decision is the analysis and financial ratios, followed by the reputation and history of the company, dividends and its impact on investment decision ranked third, while date of the company’s founding ranked fourth in terms of influencing investment decision, while the nature of the company's activity ranked fifth in terms of impact, followed by company size in the sixth rank, and finally recommendations and opinions of analysts ranked seventh and last in terms of influencing the decision of investment in the Saudi stock market.

FACTORS AFFECTING INVESTMENT DECISIONS AMONG LISTED FIRMS IN THE NAIROBI SECURITIES EXCHANGE

The importance of investment decision-making cannot be overstated since many of the factors that result in a firm’s success or failure are directly tied to the choices of decisions made. When wrong investment decisions are made, they are not easily reversible and if the firm persists or reverses them they may lead to bigger losses. It is for this reason that this research sought to investigate factors affecting investment decisions among listed firms in the Nairobi Securities Exchange. The study focused on the following factors: financial market information, investment risk, investor’s financial knowledge, and firms’ profitability to establish whether they influence investment decisions. The study employed a descriptive survey design and targeted 178 finance managers of the 67 firms listed on the NSE. Stratified and purposive sampling techniques were adopted in this study and a questionnaire was used to collect data. The researcher employed descriptive and inferential statistics to analyze data collected from the study. The results were analyzed and presented using tables. Based on the results, the researcher concludes that the four independent variables; financial market information, investment risk, firms’ profitability and investor’s financial knowledgesignificantly influence investment decisions of firms listed on the NSE.

Application of Soft Computing Techniques Rough Set Theory and Formal Concept Analysis for analysing Investment Decisions in Gold-ETF

Complex and noisy financial eco-system requires reliable models and proven techniques to predict the market movements and investor decisions. This study uses competent soft computing techniques: rough set theory (RST) and formal concept analysis (FCA) to study the investors' preferences, behavioural drivers and their actual behaviour in Gold-ETF (G-ETF) market. G-ETF, though a safe-haven and an alternate for reducing portfolio risks, inherits all complexities of financial markets. The employed RST helps in generating decision rules; and FCA to identify key factors affecting investment decision. This study is first of its kind, as integration of the foresaid techniques was not employed to study financial behaviour, earlier. The study has analysed 250 responses of G-ETF investors, in 12 listed G-ETFs, to conclude with a rich insight on the investment decisions discretised by different decision rules, strongly recommending the combined use of RST and FCA for data driven decisions.

Application of soft computing techniques 'rough set theory and formal concept analysis' for analysing investment decisions in gold-ETF

Complex and noisy financial eco-system requires reliable models and proven techniques to predict the market movements and investor decisions. This study uses competent soft computing techniques: rough set theory (RST) and formal concept analysis (FCA) to study the investors' preferences, behavioural drivers and their actual behaviour in Gold-ETF (G-ETF) market. G-ETF, though a safe-haven and an alternate for reducing portfolio risks, inherits all complexities of financial markets. The employed RST helps in generating decision rules; and FCA to identify key factors affecting investment decision. This study is first of its kind, as integration of the foresaid techniques was not employed to study financial behaviour, earlier. The study has analysed 250 responses of G-ETF investors, in 12 listed G-ETFs, to conclude with a rich insight on the investment decisions discretised by different decision rules, strongly recommending the combined use of RST and FCA for data driven decisions.

Factors Affecting Investment Decisions: Studies on Young Investors

Factors Affecting Investment Decisions: Studies on Young Investors

Factors Affecting Investment Decision Making: Moderating Role of Investors Characteristics

The current study aimed to investigate the factors affecting investment decision making. Moreover, the moderating effects of age, gender, and financial information were also tested. The study utilized a quantitative research design for that the data was collected using a structured questionnaire. The questionnaire was sent to 570 individuals out of that 374 questionnaires were returned however 372 of the questionnaires were found to be useable. The study framework had 6 constructs namely heuristics, financial information, corporate governance, risk aversion, and experience were independent variables while investment decision making was dependent variable while age, gender and financial education were moderating variables. All the latent construct were measured using multi items based on 5 point Likert scales from 1 strongly disagree to 5 strongly disagree. The results found the Heuristics, Risk Aversion, Financial Information, Corporate Governance and Experience to be significant factors affecting the investment decision making. Moreover, the moderating effect of gender was found to be significant in the relationship of (financial information, corporate governance, and experience) and investment decision making. The moderating effect of age was found to be significant in the relationship of (Heuristics, Corporate Governance, and Experience) and investment decision making while the moderating role of financial education was found to be significant in the relationship of (financial information, corporte governance and experience) and investment decision making.

Factors Affecting investment Decision in banking sector of Pakistan: Analysis of Islamic and conventional Banks

Factors Affecting investment Decision in banking sector of Pakistan: Analysis of Islamic and conventional Banks

Factors Affecting Investment Decision of FDI Enterprises in Thanh Hoa Province, Vietnam

The main content of this study is to apply the Place Marketing theory to determinant of the Place Marketing Mix of Thanh Hoa Province; Assess the important level of the factors on the investment decision of the business FDI in Thanh Hoa Province; then propose improvement for attracting FDI in Thanh Hoa Province. This study used a combination of qualitative and quantitative research methods. Based on the inheritance of the model and scales derived from previous studies, the authors interviewed five experts who have excellent knowledge about FDI and five business representatives to adjust the scales to suit with Vietnamese conditions. The survey was conducted with 213 managers/ owners and deputy directors of FDI enterprises in Thanh Hoa province. The results of 186 valid questionnaires were the basis for quantitative analysis on the software SPSS 20.0. The results of quantitative research show that: Political & legal factors are the strongest factors that influence on the Investment decision. The rest factors as follows: Infrastructure, Availability of Resources, Customers and Market factors, Investment Promotion and Input Costs factors. Based on the results of the study, the authors also propose the Marketing Mix strategies for attracting FDI in Thanh Hoa Province.

A STUDY OF FACTORS THAT AFFECT THE SELECTION OF MUTUAL FUND SCHEMES BY INDIVIDUAL INVESTORS – WITH REFERENCE TO PUNE CITY

Mutual Fund is a form of investment where a common investor can participate in the Indian capital market with professional fund management irrespective of the amount invested. A large number of people are moving towards mutual fund investments through the route of systematic investment plan. The Indian mutual fund industry is growing steadily and this is reflected in the increase in Assets under management of various fund houses. The investment in Mutual funds is a relatively safer option for risk averse investors as they are less risky than directly investing in stocks. This research paper aims at finding out the factors affecting investment decision of mutual funds and the preference of investors to particular schemes of mutual funds. The findings will help mutual fund companies to identify the parameters which influence the investment decision of the common investor and also the preferences of particular schemes and fund houses by the investors

Influence of Behavioural Factors Affecting Investment Decision—An AHP Analysis

Investors exhibit irrational behaviour in their decision-making. The decision-making process itself is considered to be a cognitive process as the investors have to make a decision based on various alternatives available to them. The researchers have found that the investors’ decision-making was adversely affected by the various psychological/behavioural factors. The current study was carried forward to identify the effect of the behavioural factors affecting the investment decision of the investors. Five behavioural factors, namely overconfidence bias, representative bias, regret aversion, mental accounting, and herd behaviour, were considered to study the behavioural biases of the investors. The study sample was taken from investors of Kerala, and the analytical hierarchy process (AHP) method was used to analyse the intensity of behavioural factors affecting the investment decision. Based on the priority vector, it was found that the investors of Kerala were highly influenced with overconfidence bias and regret aversion. Herd behaviour had less effect on their decision-making.