Factors Influencing Investment Decisions Research Articles

The role of investment knowledge, student perceptions, and technological advances in affecting investment interests in sharia capital markets

This research aims to analyze the influence of investment knowledge, student perceptions, and technological advances on investment interests in Sharia capital markets. Employing a quantitative approach, the study utilizes non-probability sampling methods, specifically the convenience sample system, to select 312 active students from a total population of 5000 at Perbanas Institute. Double linear regression is employed for data analysis. The findings reveal significant implications for the role of technological advancements in shaping student investment interest in Sharia capital markets. Specifically, the study finds that the presence of technological advancements, such as applications and trading platforms, positively impacts student interest in investing in the Sharia market. However, contrary to expectations, investment knowledge and student perceptions do not demonstrate a significant influence on student investment interest in Sharia Capital markets. This suggests that despite possessing knowledge and certain perceptions, students' investment decisions in Sharia capital markets remain unaffected. The practical implications of these findings emphasizes the importance for students to remain abreast of technological advancements to potentially enhance their investment interest in Sharia capital markets. This research contributes to understanding the multifaceted factors influencing investment decisions in Sharia-compliant financial environments and underscores the significance of technological integration in shaping investment behaviors among students.

Understanding Mutual Funds And Investors Behaviour

Mutual funds play a significant role in the investment landscape, offering investors diversified portfolios managed by professionals. This paper delves into the intricate relationship between mutual funds and investor behavior, aiming to comprehend the factors influencing investment decisions within this context. By analyzing existing literature, this study explores how psychological biases, market conditions, fund characteristics, and regulatory frameworks impact investor behavior in mutual funds. Additionally, it investigates the implications of investor behavior on fund performance and market efficiency. Through a comprehensive understanding of these dynamics, this research seeks to provide insights into effective strategies for both investors and fund managers to navigate the complexities of the mutual fund industry.

An Analysis of the Impact of Government Subsidies on Emission Reduction Technology Investment Strategies in Low-Carbon Port Operations

The sustainable development of the maritime supply chain is an undeniable trend. Low-carbon port operations are a vital component of creating an eco-friendly maritime supply chain, requiring substantial investments in technologies that reduce carbon emissions. However, the key factors influencing investment decisions by ports and shipping companies in these green technologies, particularly government subsidies, remain poorly understood. Hence, this paper proposes a game-based framework to explore the impact of government subsidies. Through numerical analysis, this study first demonstrates that the pricing decisions, investment level, and profits of ports and shipping companies are sensitive to government subsidies and low-carbon preferences of the market; however, the influence of government subsidies and low-carbon preferences varies with different adopted investment strategies. Furthermore, investment decisions are mainly influenced by investment costs, low-carbon preferences, government subsidies, and cost-sharing ratios. Ports are more sensitive to government subsidies and low-carbon preferences while shipping companies are more sensitive to government subsidies and cost-sharing ratios. In addition, government subsidies and low-carbon preferences are substitutes for each other and can balance cost-sharing ratios between ports and shipping companies. Finally, recommendations are provided to the government, ports, and shipping companies for promoting low-carbon port operations based on the findings of this study.

A Comparative Study on Factors Influencing Investment Decisions of Investors Based on Income Level in Coimbatore

This research project is a comparative analysis between the levels of income of individuals making investment decisions based on different factors from the Traditional Finance Theory and Behavioural Finance Theory. The study involves data that was collected using quota sampling method from the students and housing community in Coimbatore. There are about 154 responses collected for the purpose of the study. The non-parametric test Mann-Whiteney U Test was done to compare the impact of various variables in the different income groups- Low and High by analysing the statistically significant differences. The findings reveal that the factors of traditional finance and behavioural finance differ amongst the income groups. The perception of financial literacy has no significant difference between the categories. Risk & Return are almost perceived similarly by both the groups. Frame dependence and Herd behaviour have significant difference in its impact on the income groups. Although the findings reveal insightful information regarding the factors of investment decision which can be utilised by various stakeholders like investors and financial advisors, the study has its own limitations of using non-probability sampling method.

Cross-influence of Risk, Return, and Governance on Decision-Making in Hydropower Investments

The sustainable growth of an economy pivots on a robust financial system, particularly in the context of capital availability. This study analyzes the behavior of investors towards initial public offerings (IPOs), focusing on the hydropower development sector in Nepal. The research explores the multifaceted relationship between factors such as risk, return, and governance on investor behavior, considering elements like Idiosyncratic risk (IR), timing of issue (TIPO), Bandwagon effect (BE), expected return (ER), sectoral performance (SP), corporate governance (CG), pre-issue financial health (PFH), and marketability (MKT). Additionally, sociodemographic variables and their connection to investor behavior are examined. Employing a descriptive research design, the study involves a sample size of 392 individuals, selected through a convenient sampling method. The study's main finding documented that idiosyncratic risks, expected returns, and corporate governance stand out as crucial factors influencing investment decisions (P < 0.05). Notably, the regression analysis indicated the absence of a significant impact from market risks (P > 0.05), including the bandwagon effect and IPO timing, on investor behavior towards hydropower IPOs. This finding suggests that Nepalese investors prioritize returns and organizational governance over market risks, despite having significant concerns regarding idiosyncratic risk. The analysis also reveals significant associations between investor behavior and sociodemographic variables like age, education, occupation, and primary investment objectives (P < 0.05). This study offers valuable insights and implications for investors seeking to align investments with their goals. Hydropower developers should prioritize investor protection and transparency, while regulators must enhance disclosures, shareholder accountability, and project oversight.

Behavioral Factors Influencing Investment Decision of Individual Investor at Nepalese Stock Market

The investment decision of individual investor is influenced by macro/micro economic and behavioral factors. Interest rate, economic growth, inflation, government policy, technological developments, etc., are the macro-economic factors, and firm size, book-to-market equity, cash flow yield, earnings yield, and dividend yield, etc. are the micro-economic factors whereas accounting information, advocate suggestion, personal financial needs, social relevance, self-image/firm-image coincidence, etc. are the behavioral factor. This paper has analyzed the perception of investor on the selected behavioral factors that makes influence on individual investor's investment decisions at Nepalese stock market. Using the structured survey questionnaire, this study concludes that behavioral factors have significant influence on investment decision of individual investor. This study revealed that to get rich quickly, reputation of the firm, feelings for a firm’s products and services, and firm status in industry are the major influencing Self–image/Firm-image factor. On the other hand, friend or coworker's recommendations, family member opinion, and broker recommendation are the most significant influencing Advocate Recommendation factors. Similarly, return maximizing, stock marketability, ease of obtaining borrowed funds, and expected dividends are the major Personal Financial Needs factors, and past trends of stock, information of dividend, price level of other stock, and information of the stock market are the major Market Information factors for influencing investment decision of individual investor at Nepalese stock market.

Factors Influencing Investment Decisions among College Students: A Comparative Analysis Between India & Nigeria

Investment is done for the purpose to gain profitable returns. Investing in a well-diversified portfolio offers a multitude of benefits, including capital appreciation to grow wealth over time. As a student, managing finance can be challenging, but exploring opportunities for passive income can make a significant difference in financial stability and independence. This study endeavors to comparatively analyze the factors influencing investment decisions among college students in India and Nigeria. Demographics play a pivotal role in shaping investment choices, and understanding the differences in the attitude of these countries is vital for effective financial education initiatives. The study reveals that there is a positive relationship between different factors that students consider when making these decisions. Factors such as financial security, return on investment (ROI), and risk minimization are found to have a significant impact on their choices.

The influences of psychological factors on investors decision making in the South African derivative market

Studies in behavioral finance have shown that human behavior often diverges from the rationality assumed by economists, as their decisions can occasionally be swayed by their emotional and psychological states. Given this concern, the study examines psychological factors influencing individual decision-making in the South African financial market. A structured questionnaire was used in collecting data from 414 participants who are individual investors actively involved in trading in the Johannesburg stock exchange market with the application of the random sampling method. The main objective of this study is to explore the psychological variables or biases that determine the investment decision-making of individual investors. Furthermore, this paper investigates psychological factors such as Anchoring, Herding, Overconfidence and Representative biases in investment decision-making. Findings revealed that all the variables, overconfidence, herding, anchoring and representative heuristics have a relationship with each other but the only variable that influences the individual investment decision is the representative heuristic while less consideration is given to another variable. The results of this study would help financial advisors understand the high importance of psychological factors and help them integrate behavioral insights into investment strategies. This will in turn help them provide better services to their clients. It will also help individual investors to acknowledge and understand the psychological factors influencing investment decisions and how to take note of them to make better decisions. Policymakers can consider the implications of psychological biases on market stability.

Determinants influencing investment decisions of individual investors: The case of the developing economy

In recent years, the Vietnam stock market has recorded a large number of new investors, of which individual investors account for the majority. Although it has increased both in the number of listed shares and in trading value, price fluctuations are very unpredictable over different periods, and awareness of factors influencing investment decisions is still limited, leading to a high risk of loss in investment activities (Mayfield et al., 2008). The research was carried out in order to point out the factors influencing investment decision-making among potential individual investors, thereby proposing solutions to improve investment efficiency. The study used data from 261 questionnaires with four hypotheses, using qualitative and quantitative research methods, Cronbach’s alpha, exploratory factor analysis (EFA), and regression analysis by SPSS software. As a result, four elements influencing: 1) personality traits, 2) behavioral factors, 3) company-related factors, and 4) exogenous factors have a positive impact on the stock investment decisions of individual investors. Thereby the article shows solutions from the government, the stock market, businesses, and individuals to improve investment efficiency.

The Empirical Analysis of Factors Influencing Investment Decisions among RCEP ASEAN Member Countries

The Empirical Analysis of Factors Influencing Investment Decisions among RCEP ASEAN Member Countries

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.

Ethnomethodology Approach in Investment Decision Making in Islamic Capital Market: An Interaction and Social Practice of Market Participants

This study aims to investigate and analyze social interactions and social practices underlying investment decision-making in the Islamic capital market. The research focus includes an understanding of how Islamic values are reflected in the interaction of market participants, the communication practices used, and the impact of social context on investment decision-making. This research uses qualitative methods with an ethnomethodological approach through participatory observation, in-depth interviews, and document analysis. Researchers are involved in the daily activities of market participants, whether on the stock exchange, Islamic finance seminars, or investment forums. In-depth interviews were conducted with investors, brokers, and Islamic finance experts to gain a more in-depth perspective. The document analysis includes a study of Islamic finance literature, fatwas, and related documents. The results showed that social interaction and social practices of market participants have a significant role in making investment decisions in the Islamic capital market. Communication practices based on Islamic values play a key role in the decision-making process. The social and cultural context also influences investors’ perceptions and preferences towards Islamic financial instruments. These findings provide deep contextual insights into the factors influencing investment decisions in Islamic capital markets, which can be the foundation for the development of Islamic ethics-based investment strategies.

Factors Influencing Investment Decision to Invest in a Stock Market: A Survey of Individual Investors across Delhi NCR Region

Factors Influencing Investment Decision to Invest in a Stock Market: A Survey of Individual Investors across Delhi NCR Region

Analysis of Factors Affecting Investment Decisions and its Implications on Organizational Performance

Investment refers to the act of allocating capital with the expectation of generating a rate of return in the future. The process of making investment decisions entails a cognitive assessment that involves choosing one alternative from a range of options based on available information. Given the highly competitive global business environment, investors are compelled to thoroughly study and develop their intuition to make informed investment choices. The objective of this study is to analyze the determinants influencing Investment Decisions, which are proxied by Financial Literacy, Financial Behavior, Risk Perception, and Overconfidence, and their implications on Organizational Performance. The selection of research subjects in the Jakarta Industrial Estate Pulogadung area is based on the Government's plan to relocate to Subang, West Java. The study employs primary quantitative data collected through non-probability sampling and purposive sampling methods, and utilizes Structural Equation Model - Partial Least Square (SEM-PLS) analysis with SmartPLS 4 software. The findings of the analysis reveal that Financial Literacy have negative effect on Investment Decisions. Conversely, Financial Behavior, Risk Perception, and Overconfidence have positive effect on Investment Decisions. Additionally, Risk Perception have positive effect on Organizational Performance. However, Financial Literacy, Financial Behavior, Overconfidence, and Investment Decisions have no effect on Organizational Performance. Consequently, it can be inferred that all factors influencing investment decisions have the capacity to influence organizational performance, an organization's overall performance cannot be solely attributed to its investment decisions, as other factors also come into play

Analisis Faktor-Faktor Yang Mempengaruhi Keputusan Investasi

The study aimed to test both simultaneously and partially. Analysis of factors influencing investment decisions in food and beverage sector companies listed on the Indonesia Stock Exchange in 2018-2021. With multiple linear regression analysis methods to test classical assumptions such as normality, multicollinearity, heteroscedasticity, and autocorrelation. The results of the F test obtained that the calculated value of (2.887) > ftable (2.397) with a significant value of 0.023 < 0.05 then ROE, CR, DCR, DER, LN together have an effect and significant on PER. In the T test ROE has no effect and is not significant on PER, CR has no effect and is not significant on PER, DCR has no effect but significant on PER, DER has no effect and but significant on PER, LN has no effect and is not significant on PER. With the coefficient value of determination seen from the Adjusted R Square of 0.146. This means that the variable can explain the dependent variable by 14.6%. While the remaining 85.4% was explained by other variables that were not studied

A STUDY ON AWARENESS LEVEL OF INVESTMENT THROUGH SYSTEMATIC PLANS IN MUTUAL FUNDS AMONGST PEOPLE RESIDING IN NORTH AHMEDABAD

Systematic Investment Plan (SIP) is an attractive investment avenue offered by mutual funds in India. In the course of time, SIPs have witnessed significant growth in India, with a considerable increase in the number of SIP accounts and the total amount invested through SIPs both. Investors recognized SIPs in achieving the long- term financial goal and wealth creation tool. The present study aims to investigate the awareness level of investment major financial objectives and factors influencing through systematic plans in mutual funds among people residing in North Ahmedabad. The study employs a quantitative research design, utilizing a structured questionnaire survey to collect data from a sample of residents in North Ahmedabad. The survey comprises of varied factors, including demographic insight, awareness of mutual funds, investment with systematic investment plans (SIPs), objectives of investment in SIP and the factors influencing investment decisions. The results depicted that investors have heterogenous preferences and diverse levels of importance for each factor and investors perceive investment decisions for future prosperity and stability of their families. The research outcomes can benefit investors, financial institutions, and policymakers by boosting their familiarity of the investment preferences and awareness levels of individuals residing in North Ahmedabad. This information can assist in the development of targeted educational initiatives i.e. investor awareness campaigns (IAP), and the design of financial offerings designed to the specific demands and inclinations of the potential investors.

Contextual factors influencing investment decision making: a multi group analysis

PurposeStock markets are considered as the largest and most important units for the development and growth of the economy. The present study attempts to provide a comprehensive view of factors influencing investment decision making process of stock market investors. A multi group analysis of gender is also carried out on the proposed model.Design/methodology/approachThe data of 402 valid responses are collected through structured questionnaires from individual investors of North India. SPSS 23 is used to do the descriptive analysis and AMOS 22 is used to establish the validity of the constructs and for hypotheses testing. For performing multi group analysis, several invariance tests have also been conducted to check the robustness of the model.FindingsThe results reveal that all the factors such as firm image, accounting information, neutral information, advocate recommendation and personal financial needs significantly influence investment decision making concluding image of the firm being the most influential factor and advocate recommendation being the least influential factor for investment decisions. No significant differences between males and females were found.Research limitations/implicationsThe current study suffers from the limitation of restricted geographical area of North India. Moreover, there is also a scope to incorporate more demographic factors for predicting investment decisions.Originality/valueThis study incorporates a range of factors which covers all the aspects of investment decision making. This study also highlights the notion of signaling theory, thus contributing to the limited literature in Indian context.

Relationship between Social Media and Investment Decisions in the Nepali Stock Market

The growing pervasiveness and influence of social media in different spheres of life cannot be denied at all. In this light, this study aims to examine the relationship between different aspects of social media and investment decisions in the context of the Nepali stock market. The study sample included 384 retail investors, and the data was collected through structured questionnaires. Descriptive statistics, Pearson correlation, and standard multiple regression analyses were used to analyze the data. Although significantly positive relationships were found between all aspects of social media and investment decisions, content on social media has a stronger relationship with investment decisions relative to the online community behavior on social media and corporate image on social media. This is among the limited studies of its kind in the distinct socio-economic context of Nepal. Corporate managers may regularly update relevant information on their social media platforms for attracting potential investors and increase their firm value. Likewise, regulators may run investor education programs in order to protect investors, particularly immature retail investors, from the risk associated with potentially less reliable information on social media platforms. Future researchers may employ a mixed-method research design to uncover the comprehensive set of factors influencing investment decisions in the context of the Nepali stock market.

Factors Influencing Investment Decisions in Financial Investment Companies

For making the most favorable financial decisions possible, it is essential to have an understanding of aspects and the factors which can play a role in the decision-making. In contrast to previous research on the subject, which has only examined a single factor in making investment decisions, our study takes a more holistic approach by looking at several factors. The purpose of this study was to discover the elements that influence investment decisions made by financial organizations that are listed on Iraqi stock exchanges (ISX). The research was carried out on the six companies that made up the study’s sample size. For the purpose of data collection, the researcher utilized a structured questionnaire that was delivered to the respondents in an individual capacity. The questionnaire contained eight items. The factors of the questionnaire were analyzed with respect to normal distribution, the problem of linear multiplicity, the validity of the questionnaire in terms of content and appearance, the stability of the questionnaire by the split-half method, and the test and re-test method. In addition, the research hypotheses were tested on both the independent variables and the dependent variables. We calculated the mean, standard deviation, weight percentile, and coefficient of variance from the collected data. The significance of the connection between the dimensions of the decision-making factors was clarified through the use of Spearman’s correlation coefficient and the t test. We concluded that in the last step of the proposed model there is an increase in coefficients of determination and it reaches a value of (0.98), which is a very excellent and almost complete interpretation of the impact of dimensions extracted in the model and their impact on investment decision. As is noted, a slight decline in the value of the regression coefficient for all variables occurred, and also we noticed that the signs for the coefficients for the five variables are positive, meaning that they reflect the extent of the direct effect of those variables in making the investment decision. The response rate for the questionnaire was 97.7%.

Investment decision and level of investment in marketing of value-added products of yam and cassava in Benue State, Nigeria

The supply gap of value-added products of yam and cassava in Nigeria has continued to widen and modeling investment in marketing of these products using Double Hurdle model is non-existence in literature. The study thus investigated factors influencing investment decision and level of investment in the marketing of valueadded products of yam and cassava in Benue State, Nigeria, using Double Hurdle model. Data were collected through structured questionnaire from 300 marketers of value-added products of yam and cassava, selected via multi-stage random sampling technique. The collected data were analyzed using descriptive statistics and Double Hurdle model. The results revealed that marketers of these products in the study area were mostly married females with moderate household size, literate, young, non-member of cooperatives, experienced, and had access to credit with akpu/fufu as the most marketed product among the marketers. Estimates of the Double Hurdle model revealed that sex, marital status, age, and membership of cooperatives were the factors influencing investment decision in the marketing of these products while sex, marital status, level of education, age, membership of cooperatives, return, and credit received were the factors influencing level of investment in the marketing of these products. In identifying factors that significantly influence investment decision and level of investment in the marketing of these products, this study provides an empirical contribution to the existing literature. It was recommended that policies geared towards increasing the level of investment in the marketing of these products should take into consideration the socio-economic characteristics of the marketers.