Financial Investment Decisions Research Articles

A Multi-Agent Financial Investment Decision Method Based on Evolutionary Game

Data-driven smart investment decisions are important for financial development, which has not received much attention from academia. As a result, this paper resorts to the evolutionary game theory, and proposes a novel multi-agent financial investment decision method. Specifically, an evolutionary game theory-based decision-making approach is formulated as the main model for the research purpose. By considering the strategic choices and adaptability among various entities, a comprehensive analysis of the behavior and decision-making process of entities in the financial market is achieved. This paper combines stock exchanges and financial data providers (Bloomberg and Thomson Reuters) to conduct case studies on this method, verifying its effectiveness and feasibility in practical applications. By comparing traditional financial investment decision-making methods, it can be seen that the proposal has significant advantages in improving investment efficiency, reducing risks, and responding to market volatility. This paper delves into the multi-agent financial investment decision-making method based on the evolutionary game, providing new ideas and methods for academic research and practical applications in the financial field.

The Impact of Financial Literacy on Investment Decisions: The Moderating Role of Financial Technology

This study investigates the impact of financial literacy on investment decisions and explores the moderating role of financial technology (Fintech). Conducted among small and medium-sized enterprises (SMEs) in Bali Province, Indonesia, the research seeks to understand how financial literacy influences investment choices and how Fintech enhances this relationship. A quantitative approach was used, involving the distribution of questionnaires to 100 SME owners who received business legality through decentralization funds. The data, collected via primary sources and analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) 4.0, included measures of financial literacy, investment decisions, and Fintech usage. The findings reveal that higher financial literacy positively impacts investment decisions, with SMEs demonstrating better investment management and decision-making capabilities. Additionally, Fintech was found to strengthen this relationship by providing real-time data and advanced analytical tools that enhance investment decisions for those with strong financial literacy. However, the benefits of Fintech were more significant for individuals with higher financial knowledge, indicating that technology alone cannot replace the need for financial education. This study underscores the importance of integrating financial literacy with technological tools to improve investment outcomes and suggests that future research should explore diverse geographic contexts and longitudinal studies to better understand the evolving dynamics between financial literacy, Fintech, and investment decisions

The Influence of Corporate Social Responsibility (CSR), Company Size, Leverage and Investment Decisions on Company Financial Performance (Empirical Study of Basic Materials Companies Listed on the Indonesia Stock Exchange 2019-2023)

This study aims to determine the influence of corporate social responsibility, company size, leverage and investment decisions on the company's financial performance. This type of research is quantitative and uses secondary data with media in the form of financial and annual company reports in the basic materials sub-sector taken from IDX. The population used in this study is 96 companies through purposive sampling criteria selected 21 samples of companies in the basic materials sub-sector with a period from 2019-2023. Data processing using eviews version 13. Based on the results of the test conducted that simultaneously the variables of influence of corporate social responsibility, company size, leverage and investment decisions have an influence on the company's financial performance. Partially, corporate social responsibility affects the company's financial performance, the size of the company does not affect the company's financial performance, leverage affects the company's financial performance and investment decisions do not affect the company's financial performance.

The Impact of Social Media Influencers On Personal Finance And Investment Decisions

This research aims to explore the impact of social media influencers on the personal financial behavior and investment decisions of Sharia Economics Study Program students at IAI Uluwiyah Mojokerto. The focus of this research is to understand motivations for following financial influencers, changes in financial behavior after following influencers, and reasons for choosing sharia-based investments. This research uses a phenomenological method with a case study approach. Data was collected through in-depth interviews with students who follow financial influencers on social media. Data analysis was carried out using coding techniques to identify the main themes that emerged from participants' experiences. The research results show that students are motivated to follow financial influencers because they are looking for information and education, inspiration, and the influencer's credibility. After following influencers, students show increased savings discipline, reduced consumer spending, and wiser investment decisions. Students choose sharia investments because of adherence to religious principles, transparency and fairness, as well as the potential for competitive profits.

EXPRESS: The Last Hurrah Effect: End-of-Period Temporal Landmarks Increase Optimism and Financial Risk-Taking

Understanding what drives risk-taking is fundamental for the study of choice under uncertainty. One widely discussed question is when and why people engage in risk-taking. Prior work finds evidence for an ending effect, where risk-taking increases on the last gamble in a series when outcomes are immediately realized. We test whether socially ubiquitous endof-period temporal landmarks (e.g., last day of the work week, month, year) alter financial risk-taking even when outcomes are not immediate. Using data from a large peer-to-peer investment platform in the United States, we show that investors make riskier financial investment decisions on Fridays relative to those made earlier in the week. Consistent with a broader end-of-period effect, risk-taking also increases on the last day of the month, last day of the year, and on weekdays prior to a long weekend. Follow-up lab experiments identify a novel mechanism driving ending effects: As people near the end of a temporal period, they feel more optimistic that their financial risks will pay off, driving greater financial risk-taking. The shift in risk-taking is not without consequence: In our specific peer-to-peer context, we show that end-of-period investments perform worse over time, losing money relative to investments made on other days.

The behavioral biases on investment decision behavior: Evidence from Indonesia

The purpose of this study to analyze the behavior of investors in making financial investments in Indonesia. Although the overall financial literacy level in Indonesia has increased, individuals with higher levels of financial literacy tend to make more rational investment decisions. Being well-literate can be interpreted as the personal ability to understand and create financial concepts. However, some individuals still need help understanding investment products and services in Indonesia. This is due to the fact that there are still individuals who invest in illegal products. This study focuses on four biases: overconfidence bias, optimism bias, herding effect, and flexing, using quantitative analysis. The decision to invest is influenced by the thoughts of each investor and their optimistic behavior in seeking the highest return on their investment. This study used primary data with descriptive quantitative analysis. The number of respondents used in the overall research was 400, with criteria for investment products. The result of this study shows that the variable of overconfidence, optimism, and flexing affects the behavior of financial investment decisions. However, the variable bias herding effect does not affect the behavior of financial investment decisions. In conclusion, investors should be more cautious in making investment decisions by paying attention to the variables of overconfidence, optimism, herding effect, and flexing social media in Indonesia.

Financing Risks and Preventive Measures for E-Commerce Corporates

The e-commerce industry has achieved tremendous development in the past decade. However, in this rapid development process, there are some problems that have caused huge hidden dangers, and financing is the most important one among them. Therefore, the topic of this article is the dangers and prevention methods of e-commerce corporations under different financing methods. The method of this paper is as follows: first, segment the financing models of e-commerce corporates, then combine the financing situation of several well-known e-commerce corporates in China, analyze relevant data, and discuss the possible problems under these financing models separately. The research shows that the short-term debt payment risk, financial leverage risk and investment decision risk are the major risks that have influences on the firms’ financing, and the first two have a greater impact. To resolve these dangers, e-commerce firms can adjust debt structure, diversify financing channels and establish a sound risk prevention mechanism.

Peran Influencer dalam Investasi Cryptocurrency: Literasi Keuangan Digital Mediator ataukah Moderator?

In the context of significant growth in cryptocurrency in Indonesia, investment influencers on social media often provide information that affects investment behavior. Digital financial literacy becomes crucial in ensuring wise investment decisions, especially in understanding the risks and potential benefits of cryptocurrency. This research explores the role of influencers in cryptocurrency investments in Indonesia, with a focus on digital financial literacy as a mediating factor. Data were collected using a survey method with a sample of 100 respondents. Data analysis employed SEM-PLS. The study results indicate that influencers and digital financial literacy affect cryptocurrency investment decisions. Digital financial literacy acts as a mediator, not a moderator. These findings highlight the importance of comprehensive financial education in addressing this increasingly popular investment trend.

Crude oil price forecasting using K-means clustering and LSTM model enhanced by dense-sparse-dense strategy

Crude oil is an essential energy source that affects international trade, transportation, and manufacturing, highlighting its importance to the economy. Its future price prediction affects consumer prices and the energy markets, and it shapes the development of sustainable energy. It is essential for financial planning, economic stability, and investment decisions. However, reaching a reliable future prediction is an open issue because of its high volatility. Furthermore, many state-of-the-art methods utilize signal decomposition techniques, which can lead to increased prediction time. In this paper, a model called K-means-dense-sparse-dense long short-term memory (K-means-DSD-LSTM) is proposed, which has three main training phrases for crude oil price forecasting. In the first phase, the DSD-LSTM model is trained. Afterwards, the training part of the data is clustered using the K-means algorithm. Finally, a copy of the trained DSD-LSTM model is fine-tuned for each obtained cluster. It helps the models predict that cluster better while they are generalizing the whole dataset quite well, which diminishes overfitting. The proposed model is evaluated on two famous crude oil benchmarks: West Texas Intermediate (WTI) and Brent. Empirical evaluations demonstrated the superiority of the DSD-LSTM model over the K-means-LSTM model. Furthermore, the K-means-DSD-LSTM model exhibited even stronger performance. Notably, the proposed method yielded promising results across diverse datasets, achieving competitive performance in comparison to existing methods, even without employing signal decomposition techniques.

The nexus between financial literacy, risk perception and investment decisions: Evidence from Indonesian investors

Financial literacy is an essential factor for individuals or households in making investment decisions. However, the problem of insufficient financial literacy is still considered one of the factors limiting the creation of successful investments, especially in relation to risk perception. Some investors have financial losses due to their limited financial literacy, making inefficient investment decisions and implicating high-risk investment choices. Hence, this study aims to explore the interconnection between financial literacy, risk perception and investment decisions. Moderated regression analysis was used for 233 investors in Indonesia who completed financial management training. The results showed that financial literacy has a positive and significant impact on investment decisions, which means that it could be used to improve the quality of investment decisions. On the other hand, risk perception as a moderating variable weakened the impact of financial literacy on investment decisions; this confirmed the consistent results before and after financial training. Overall, financial literacy across three dimensions (knowledge, skills, and attitude) plays an important role in investors allocating more funds to investment instruments than respondent groups with lower financial literacy levels. In addition, the level of financial literacy also influences the choice of investment product.

Preferences for ethical intermediaries and sustainable investment decisions in micro-firms: The role of financial literacy and digital financial capability

This study analyses the effects of financial literacy and digital financial capabilities in shaping entrepreneurs’ preferences for ethical financial intermediaries and sustainable investment decisions. Exploiting novel survey data on Italian micro-enterprises, we find that more financially literate business owners have higher preferences for intermediaries with a strong ethical stance, are more likely to make investments inspired by environmental and social criteria and have a higher awareness of sustainable financial products. Moreover, digital financial competencies are found to play a significant role in enhancing preferences for ethical intermediaries and sustainable investment decisions. Finally, we show that the beneficial effect of financial literacy is mostly direct, while the indirect effect operating through higher digital financial abilities, despite being statistically significant, impacts firms’ sustainable financing and investing decisions only to a lower extent.

THE INFLUENCE OF FINANCIAL BEHAVIOR, OVERCONFIDENCE, AND RISK PERCEPTION ON INVESTMENT DECISIONS: THE ROLE OF FINANCIAL LITERACY MEDIATION (AN EMPIRICAL STUDY OF MILLENNIAL INVIDUAL INVESTORS IN JAKARTA)

This study aims to test and analyze the influence of financial behavior, overconfidence, and risk perception on financial literacy and investment decisions in the millennial generation in Jakarta. This study was conducted using quantitative methods, structural equation modeling (SEM), and assisted by the Smart PLS 4.0 program with a total of 100 respondents with an average age of 25-35 years. The structural model was evaluated using R-square for dependent constructs, Stone-Geisser Q-square test for Q2 predictive relevance, and significance test of structural path parameter coefficients. The results of this study can be an input in the development of investment behavior theory, especially investment decision-making, as well as the mediation role of financial literacy in these relationships, on individual millennial investors in the Jakarta area. The study found that financial behavior and overconfidence significantly impact the financial literacy of the Millennial Generation in Jakarta, while overconfidence did not. It is recommended that Millennial investors focus on improving their financial literacy, risk perception, and financial behavior to influence investment decisions, while avoiding overconfidence.

BIBLIOMETRIC STUDY OF FINANCIAL LITERACY AND RISK TOLERANCE ON INVESTMENT DECISIONS

This study aims to analyze trends and developments in research on the relationship between financial literacy, risk tolerance, and investment decisions. Employing a bibliometric analysis methodology, the study utilizes data from international publications in the Google Scholar database collected through Publish or Perish software. The analysis covers the publication period from 2017 to 2022 and includes a review of 498 articles using keywords such as financial literacy, risk tolerance, and investment decisions. VOSviewer software was employed for data analysis. The analysis reveals increased attention to topics such as risk appetite, financial markets, and performance, despite a declining trend in publications on financial literacy, risk tolerance, and investment decisions. Significant gaps in the literature are identified, particularly in areas such as financial risk tolerance, financial education, enterprise risk management, and investment horizon. Future research should focus on these underexplored areas to develop personalized investment strategies and enhance financial education. Recommendations include the creation of targeted financial education programs and tools to improve the assessment of risk tolerance. This study provides valuable insights into the evolving landscape of financial literacy and risk tolerance research. It underscores the importance of these factors in making informed investment decisions and offers a foundation for future studies to build upon.

Financial risk propensity and investment decisions: An empirical analysis using behavioural biases

The study aims to determine the influence of behavioural biases on financial risk propensity. It also attempts to examine the influence of financial risk propensity on investment decisions and the mediational role of financial risk propensity on the relationship between behavioural biases and investment decisions. A survey by questionnaire method is adopted to collect data from 203 respondents using the purposive sampling technique among the investors. The study has found that prospect, herding, and heuristics dimensions of behavioural bias have a significant impact on financial risk propensity, and in turn, financial risk propensity has a significant impact on investment decisions. The results of the study can help to develop more realistic investment valuation models in light of the revised risk-return expectations of investors who act contrary to the traditional concept of rational utility maximisers.

The Impact of Financial Literacy, Investment Knowledge, and Investment Motivation on Investment Decisions

This study investigates the relationship between management students' investment decisions and their financial literacy, knowledge, and motivation at Dr. Soetomo University in Surabaya. A total of 308 students from this academic program were chosen for the study using purposive sampling techniques, guaranteeing that the study's population is representative of the student body. We distributed carefully crafted questionnaires for data collection through Google Forms as part of the methodology used in this study. Purposive sampling methods are used to ensure the student body is well represented. We meticulously examined the gathered data using a variety of statistical methods. Among these were evaluations of reliability and validity, analyses of multiple linear regression, tests of classical assumptions, evaluations of correlation coefficients, and F and t-tests. This study uncovered insightful relationships between students' financial literacy, investment knowledge, motivation, and investment decisions. The study found no statistically significant impact of financial literacy on investment decisions, contrary to expectations. The results of the study, however, highlighted the importance of respondents' unique investment knowledge and motivation in molding their investment choices. Students' level of financial literacy, investment knowledge, and investment motivation significantly impacted their investment decisions as a whole. By considering these factors in context, we can better understand the complex dynamics at work when management students at Dr. Soetomo University make investment decisions.

A Role Of Financial Literacy In Financial Investment Decisions Of Teachers Of Higher Education Institutions In Pune Region

A Role Of Financial Literacy In Financial Investment Decisions Of Teachers Of Higher Education Institutions In Pune Region

An Intelligent Financial Investment Decision Model Based on Multi-Agent Reinforcement Learning

Financial investigation decision is a complex affair that highly relies on expert knowledge. In the era of big data, it remains practical to make intelligent financial investigation decisions via computing technology. As a consequence, this work introduces reinforcement learning to search for effective decision schemes that are adaptive to the diverse financial environment. Therefore, an intelligent financial investment decision model based on multi-agent reinforcement learning is proposed in this paper. First, the long short-term memory (LSTM) model is utilized to strengthen financial investment data. Then, the hidden Markov model (HMM) is utilized to make a preliminary judgment on financial investment strategy. Next, a multi-agent deep deterministic policy gradient (MADDPG) is employed to set the goal of agent reinforcement and determine decision indicators based on the financial market environment. Multiple agents (investors) form a cooperative strategy through learning and interaction to achieve the optimal investment decision in the financial market. The experimental results on realistic data indicate that the proposal can play an important role in investment decision-making.

Impact of Indian Accounting Standards (IND AS) on Financial Statements

The adoption and implementation of accounting standards play a pivotal role in shaping the financial reporting landscape of a country, influencing how businesses communicate their financial performance and position to stakeholders. In the case of India, the transition from Generally Accepted Accounting Principles (GAAP) to Indian Accounting Standards (Ind-AS) marked a significant paradigm shift in the accounting framework. The move was aimed at aligning Indian accounting practices with global standards, fostering transparency, comparability, and international investment. Historically, India had been following its own set of accounting standards, which sometimes diverged from international norms, leading to challenges in cross-border financial analysis and investment decisions. Recognizing the need for convergence with International Financial Reporting Standards (IFRS), the Ministry of Corporate Affairs (MCA) in India mandated the adoption of Ind-AS for certain classes of companies, primarily listed entities and large unlisted companies. The adoption of Ind-AS was a phased process, with the first set of companies transitioning in the financial year 2016-17. The primary objective was to enhance the quality and reliability of financial reporting, making it more comparable and relevant on a global scale. Ind-AS aimed to bring about consistency in accounting treatments, disclosures, and presentation of financial statements, fostering a more transparent and investor-friendly environment. One of the key motivations behind the shift to Ind-AS was to facilitate easier access to global capital markets for Indian companies. By adhering to internationally recognized accounting standards, Indian businesses sought to attract foreign investment and broaden their investor base. This move was particularly crucial as India aimed to position itself as a global economic player, attracting multinational corporations and fostering cross-border investments. The implementation of Ind-AS introduced changes in various aspects of financial reporting, affecting balance sheets, income statements, and disclosure practices. Companies faced the challenge of adapting to new measurement criteria, recognition principles, and disclosure requirements. The impact of these changes extended beyond mere compliance; it influenced how companies assessed their assets, liabilities, and overall financial performance. Additionally, the adoption of Ind-AS prompted companies to reevaluate their internal control mechanisms, financial policies, and governance structures. The transition required a robust framework for training and educating financial professionals, auditors, and other stakeholders to ensure a smooth and accurate implementation of the new standards.

THE INFLUENCE OF FINANCIAL LITERACY AND FINANCIAL TECHNOLOGY ON GENERATION Z INVESTMENT DECISIONS (CASE STUDY OF MANAGEMENT STUDENTS OF BANDAR LAMPUNG UNIVERSITY CLASS OF 2020)

With an asset value of IDR 144.07 trillion at the end of the first semester of 2022, stock investors under 40 years old, namely gen Z and millennials by 81.64 percent. Most investors, 60.45%, work as private employees, civil servants, teachers, and students, with an asset value of Rp358.53 trillion. Demographic data shows that the majority of stock investors live on the island of Java, including 13.97% of those living in DKI Jakarta, with an asset value of Rp3,772.32 trillion. While the island of Sumatra is only 16.62%. From the explanation above, we can conclude that there is still low investment interest in several regions, especially Sumatra. The research problems are: Can financial literacy affect investment decisions in generation z in Bandar Lampung city, whether there is an influence between financial technology on investment decisions in generation z in Bandar Lampung city, whether financial literacy and financial technology can affect investment decisions in generation z in Bandar Lampung city.The purpose of this study is to determine the influence of financial literacy and financial technology towards investment decisions in generation z in Bandar Lampung city. Based on the results of the t test, it shows that the value of t calculated for Financial Literacy is greater than t table (3.687 > 1.998), and the value of sig = 0.006 < 0.05. In multiple regression analysis, financial literacy has a positive value for investment decisions. Financial technology has a positive and significant influence on the investment decisions of students or generation Z in the city of Bandar Lampung, meaning that the hypothesis is accepted. The results of the t test show that the value of t calculated by Financial Technology is greater than t table (2.515 > 1.998). In multiple regression analysis, financial technology has a positive value for investment decisions. The results of processing and analysis show that financial literacy and financial technology have a positive and significant impact on the investment decisions of generation Z in Bandar Lampung.

A Review Study on ‘Financial Investment Decision of Individual Investor’ based on their Behavioral Biases and other aspects.

Investment in a wide range of securities and financial instruments has resulted from the growth of the financial markets. Thus, behavioural finance has illuminated how the characteristics and thought processes of investors impact their intents and decisions while making investments. We did a thorough analysis of the most recent studies on the major variables influencing people's behaviour and investing decisions. By using bibliometric analysis, this study seeks to provide a thorough method for assessing qualitative elements that affect investors' intentions and behaviours when making financial investments. By examining the causes and methods of individual investors' decision-making, especially in emerging markets, the study advances the discipline of behavioural finance.