Influence Investment Decisions Research Articles

A Study on Stock Price Prediction Using LSTM and RNN

Stock price prediction remains a critical task in financial markets, influencing investment decisions and portfolio management. This research paper explores the efficacy of Long Short-Term Memory (LSTM) and Recurrent Neural Networks (RNN) in forecasting stock prices.

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.

Conceptual Models of Franchisee Behaviors in the Dietary Supplements and Cosmetics to Imply the Business Investments

Franchise businesses have demonstrated resilience before, through, and after the circumstances of COVID-19. This can be attributed to the inherent appeal of rapid success and risk mitigation for investors. Therefore, investors are attached to engaging in a franchise business model. Fierce competition exists among franchise businesses, with numerous brands within the same industry, especially the cosmetic and dietary supplement franchise category, which has garnered significant popularity in Southeast Asia, particularly Thailand. The expansion of this franchise category has accelerated, surpassing the growth rates observed in other countries. Investment decisions across various investor levels are influenced by diverse factors, including intense competition, contributing to the rapid expansion. Therefore, a comprehensive study and understanding of the investment behavior of cosmetic and dietary supplement franchise businesses has become imperative. The success of a franchise business hinges on different factors encompassing decisions made before, during, and after investments. This study delves into the decision-making behaviors preceding and following investments across different investor levels in the cosmetics and dietary supplement franchise industry, utilizing fundamental aspects derived from rational choice theory (RCT) and additional variables. The researcher gathered responses through questionnaires from 490 respondents with investment experience in the cosmetics and dietary supplement franchise business. The study revealed that factors postulated in this study significantly influenced investment choices within cosmetics and dietary supplement franchises. When segmented based on investor levels, distinct considerations emerged for each group. Furthermore, there is a compelling need for cosmetic and dietary supplement franchise owners to implement enhancements in services to uphold and expand investor bases, representing an intense challenge in the cosmetics and dietary supplement franchise business nowadays. This study is intended only for individuals with prior investment experience in the cosmetics and dietary supplement franchise industry. It focuses on examining the factors that influence investment decisions both before and after the initial investment, particularly with regard to dietary supplement and cosmetics franchises.

The Effects of Oil Price on Energy Production and the Ecuadorian Economy

Through an empirical analysis of the impact of variations in the international price of oil on the economic production of different strategic sectors and on energy production from various sources in Ecuador, the study seeks to show evidence on the economic effects of the price of oil. in a Latin American economy strongly linked to oil production. For this, relevant data were collected on production in different economic sectors, on the type of ownership in oil production and on energy production in various energy sources in Ecuador and statistical analyzes were carried out to evaluate the relationships between these and the international oil price. The results indicate that the effect of the oil price varies between the economic sectors of Ecuador. Some sectors, such as financial services and construction, show positive responses, while others, such as agriculture and fishing, appear less affected. The oil and mining sector in Ecuador is strongly linked to variations in the price of oil. The positive and significant response of the Oil and Mines GDP underlines the sensitivity of this sector to changes in international prices. Furthermore, energy production in Ecuador exhibits heterogeneous responses to variations in the price of oil. Forms of energy such as wind, solar, and thermal energy show positive and significant responses, while hydropower presents a negative response in some periods. Positive responses in forms of energy such as wind, solar, and thermal may indicate that the increase in the price of oil positively influences investment decisions in these energy sources. The study provides a significant contribution to the field of energy economics in oil-exporting countries and, particularly, in developing countries, as well as highlights the importance of energy diversification for these types of economies.

Challenges and Responses to ESG Risk Management

As Environmental, Social, and Governance (ESG) considerations gradually gain global prominence, the demand for ESG risk management by corporations is rapidly increasing. This is not only a manifestation of social responsibility, but also a prerequisite for sustainable corporate development. ESG risk management is not only crucial for the long-term interests of corporations themselves, but also influences investment decisions and public perceptions of corporations. However, in the implementation process, challenges such as uncertainty in data quality, regulatory compliance, the diversification of stakeholder needs, and the complexity of strategic integration have been encountered. To effectively address these issues, corporations need to establish and enhance ESG data quality management systems, adapt to and proactively respond to regulatory changes, strengthen communication with investors and other stakeholders, and promote deep integration of ESG strategies across various departments and levels within the corporation. This article will explore the challenges faced by ESG risk management and propose corresponding strategies and recommendations.

A Study on The Social Media Influence on Financial Decisions

Abstract: This research explores how social media influences investment decisions among Generation X, millennials, and Generation Z, known for their heavy use of digital technology. Using quantitative methods and surveys, the study examines individuals from different age groups on social media platforms. Results show a significant link between social media engagement and investment choices across all generations. Investment firms are urged to use social media for marketing and communication to reach a wider audience. The study emphasizes the need for financial literacy across generations in an era where social media plays a crucial role in financial decision-making. It advocates for tailored strategies to engage each demographic while promoting universal financial literacy.

Analysis of Financial Literacy, Financial Inclusion and Mental Accounting on Investment Decisions of The Millenial Generation in Surabaya

There are several factors that influence investment decision making, one of which is the psychology of the millennial generation in Surabaya in making investment decisions. The basis for making investment decisions consists of rate of return, risk and time period. Investment decisions are steps taken by individuals to place their funds in the hope of obtaining a rate of return in the future. This cannot be separated from the influence of financial literacy, financial inclusion and accounting mentality. This research aims to analyze the influence of financial literacy, financial inclusion and mental accounting on investment decisions of the millennial generation in Surabaya. This research method uses quantitative methods. The instrument used was a questionnaire. The data used is data from 152 millennial generation respondents in Surabaya and the data was analyzed using the Partial Least Square-Structural Equation Modeling (PLS-SEM) method. The research results show that financial literacy, financial inclusion and mental accounting have a significant positive effect on the investment decisions of the millennial generation in Surabaya. The contribution of this research in the future can provide an overview of investment products for the millennial generation in Surabaya in making investment decisions related to the level of financial literacy, financial inclusion and mental accounting in the post-pandemic era.

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.

The Influence of Representativeness Bias, Optimism Bias and Loss Aversion on Stock Investment Decision Making among Investors in Pontianak City

The study investigates the impact of representativeness bias, optimism bias, and loss aversion on stock investment decision-making among investors in Pontianak City. Using data from the Indonesian Central Securities Depository and other sources, the research explores the trends and behaviors of investors in the capital market. Through multiple linear regression analysis, the study finds significant correlations between these cognitive biases and investment decisions. The results suggest that while representativeness bias and optimism bias do not individually influence investment decisions, loss aversion has a significant impact. The research contributes to understanding the psychological factors affecting investment behavior in the stock market.

GENERATIONAL INVESTMENT PATTERNS IN MUTUAL FUNDS: A COMPARATIVE STUDY OF GENERATION X AND MILLENNIALS

This Master’s thesis examines the investment patterns in mutual funds across two distinct generational cohorts: Generation X and Millennials. The primary aim of this study is to analyze and compare the investment behaviors and preferences between these two groups, focusing on factors such as risk tolerance, investment time horizon, and preferred fund types. Utilizing a mixed-methods approach that combines quantitative data analysis of investment portfolios with qualitative surveys and interviews, this research provides a comprehensive view of how generational differences influence investment decisions. The quantitative analysis involves a statistical examination of mutual fund holdings and transactions sourced from a proprietary database covering the period from 2010 to 2020. Meanwhile, the qualitative component features insights from over 200 individual interviews with representatives of each generation, supplemented by surveys to gauge attitudes towards various investment strategies and market outlooks. Initial findings suggest significant divergences in the investment strategies between Generation X and Millennials. Generation X investors tend to favor income-focused and balanced funds, displaying a preference for stability and long-term growth, influenced possibly by their proximity to retirement. In contrast, Millennials are more inclined towards equity-heavy portfolios and show a greater propensity for embracing emerging market funds and ESG (environmental, social, and governance) themed investments, driven by higher risk tolerance and a longer investment horizon. This thesis not only highlights the distinct investment preferences of these generations but also delves into the sociopolitical and economic factors that might influence these patterns. Furthermore, it discusses the implications of these generational differences for financial advisors, mutual fund managers, and policymakers. By identifying and understanding these generational investment behaviors, industry professionals can better tailor their approaches to meet the needs and preferences of each demographic group, enhancing client satisfaction and engagement. This comparative study contributes to the financial industry’s understanding of demographic shifts and their impacts on market trends, offering valuable insights for developing more targeted and effective investment products and strategies.

The Risk Perception as a Mediator Between Herding and Overconfidence on Investment Decision by Gen Z in Indonesia

Behavioral finance theory highlights how psychological factors can lead to poor investment decisions, which may threaten investors' trust in the stock market, discourage investments, and hinder economic growth. This study aims to examine how behavioral finance factors, particularly herding bias and overconfidence bias, influence investment decision on the Indonesia Stock Exchange through risk perception. The research was conducted using an online questionnaire distributed to 120 Gen Z stock investors and analyzed using PLS-SEM. The results show that herding and overconfidence biases have a significant positive influence on risk perception. Both herding and overconfidence biases have indirect positive influences on investment decision through risk perception. Although overconfidence bias and risk perception can directly affect investment decision, herding bias fails to do so. These findings highlight the importance of considering an individual's behavioral biases and risk perception, while policymakers should devise strategies to mitigate their impacts; so that investors can benefit from investing, which may eventually lead to the growth of the national economy

Does Self-Control and Over-Confidence Influence Investment Decision: The Mediating Role of Fundamental and Technical Analysis

This study investigates the influence of self-control and over-confidence on investment decision-making, with a focus on the mediating role of fundamental and technical analysis. The respondents of the study are institutional investors operating in the Pakistan Stock Exchange Market (PSX), which includes the Lahore Stock Exchange, Karachi Stock Exchange, and Islamabad Stock Exchange. The behavior of these investors is assessed to determine the impact of stock market fluctuations on their investing decisions. The unit of analysis in this research is the institutional investors themselves. The study aims to examine the behavioral consequences of integrating self-control and overconfidence variables in investment decisions, particularly in relation to market instability and variations in fundamental and technical analysis. To select the sample, both stratified sampling and cluster sampling techniques were employed. Cluster sampling was used to save costs, while stratified sampling ensured that the sample accurately reflects the population. The states were divided into clusters to facilitate the use of cluster sampling. In terms of sample size, the study solely focuses on institutional investors in the Pakistan stock exchange PSX. Therefore, the sample consists of 375 institutional investors. Data collection for this study utilized a 5-point Likert scale, which is a commonly used measurement instrument for determining the relationship between variables. The scale allows respondents to provide their opinions on a continuum from strongly disagree to strongly agree. This approach enhances the originality and reliability of the data while minimizing respondent annoyance. Overall, this study aims to contribute to the understanding of how self-control and over-confidence influence investment decisions, with fundamental and technical analysis serving as mediators in the context of the Pakistan Stock Exchange Market. The findings from this research can provide valuable insights for institutional investors in their decision-making processes. Integrating self-control and over-confidence in investment decision-making aligns with SDG Goal 8: Decent Work and Economic Growth, by promoting responsible and sustainable investment practices.

HERDING BEHAVIOR IN THE SHARIA CAPITAL MARKET ON INVESTMENT DECISIONS

Herding behaviour is an irrational decision-making because it is the following of other investors. Using information asymmetry as a moderating variable, this research aims at identifying the factors that influenced investment decisions. The research object was the Jakarta Islamic Index, and the data used were quarterly data from 2019 to 2021. The methods of sampling and analysis used were the panel data regression method and the purposive sampling method. The results showed that volatility, exchange rate, market sentiment and firm size positively and significantly affected herding behaviour. Information asymmetry strengthened the influence of herding behaviour on investment decisions. Furthermore, investors and potential investors could use the results to make future investment decisions.

Investigating the Relationship Between Environmental, Social, and Governance Factors and the Capital Asset Pricing Model

This study delves into the intricate relationship between the Capital Asset Pricing Model (CAPM) and Environmental, Social, and Governance (ESG) factors in the investment landscape. Through an extensive review of existing literature and comparative analyses, the paper uncovers the historical development of CAPM, the rise of ESG considerations, and their convergence in modern financial theory. The research aims to shed light on the ongoing debates surrounding integrating ESG factors into the CAPM framework, revealing both supportive and critical viewpoints. Through a critical evaluation of empirical studies, the paper identifies gaps in the current body of knowledge, emphasizing the need for further research to understand the interplay between ESG factors and CAPM. The study concludes that while ESG considerations have increasingly influenced investment decisions, their precise relationship with traditional financial models, such as CAPM, remains an area ripe for exploration.

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.

Model-based financial regulations impair the transition to net-zero carbon emissions

AbstractInvestments via the financial system are essential for fostering the green transition. However, the role of existing financial regulations in influencing investment decisions is understudied. Here we analyse data from the European Banking Authority to show that existing financial accounting frameworks might inadvertently be creating disincentives for investments in low-carbon assets. We find that differences in the provision coverage ratio indicate that banks must account for nearly double the loan loss provisions for lending to low-carbon sectors as compared with high-carbon sectors. This bias is probably the result of basing risk estimates on historical data. We show that the average historical financial risk of the oil and gas sector has been consistently estimated to be lower than that of renewable energy. These results indicate that this bias could be present in other model-based regulations, such as capital requirements, and possibly impact the ability of banks to fund green investments.

Efektivitas dan Efisiensi Visualisasi Data Laporan Keuangan Terhadap Keputusan Investasi: Studi kasus pada mahasiswa S1 Akuntansi Universitas Bengkulu

The right investment decision in an entity is important for every potential investor in order to get the right and profitable investment. This study aims to determine whether data visualization is able to influence investment decisions in an entity. This research uses secondary data sources in the form of company financial statements which are then visualized. The object of this research is a S1 Accounting student of Bengkulu University. The results showed that the effectiveness and efficiency of data visualization had a positive effect on investment decisions in S1 Accounting students of Bengkulu University.

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.