Investment Decisions Of Investors Research Articles

A Study of the Implementation of PSAK 74 on Firm's Value of Insurance Companies in Indonesia

Firm’s value plays an important role for both company management and investors in investment decisions. Often, net profit or revenue is closely related to the creation of firm’s value. This research examines whether the application of the Pernyataan Standar Akuntansi Keuangan (PSAK) or Indonesian Financial Accounting Standards Board 74 affects company value as measured using Tobin’s Q. Standards for insurance company contracts have changed based on the adoption of IFRS 17, and are still being prepared and conducted in-depth studies. This research uses a quantitative approach with panel data regression testing using STATA. Data was collected in the form of secondary data on insurance companies listed on the Indonesia Stock Exchange from 2012 to 2022, using a purposive sampling method. The results of the research show that operational profit (loss) from the new face of insurance company financial reports has a positive effect, while insurance company investment profit (loss) has a negative effect on company value. This research expands the study of the implications of implementing PSAK 74 for insurance companies in the future.

Fostering The Changing Economic Market Demand from The View of Various Behavioral Social Personal and Economic Transformation: Empirical Evidence from A Developed Country

The key objective of the study is to foster the changing market demand from the view of various social, behavioral, personal, and economic transformations on individual investment decisions at Shanghai and Shenzhen stock markets in China. The study used a questionnaire to survey a total of 345 investors holding stocks of listed companies at both Shanghai and Shenzhen stock exchanges. The results of the study indicate that behavioral factors, personal factors, and market factors have a significant positive impact on individual investor investment decisions in both shanghai and Shenzhen stock markets while social factors have an insignificant negative impact on individual investor investment decisions in both shanghai and Shenzhen stock markets. Chinese stakeholders will understand better the role of various social, behavioral, personal, and markets factors and their impacts on stock market performance at both Shanghai and Shenzhen stock markets. The findings have important insights for various stakeholders i.e. government, regulatory bodies, practitioners, academia, industry, and researchers.

Fostering The Changing Economic Market Demand from The View of Various Behavioral Social Personal and Economic Transformation: Empirical Evidence from A Developed Country

The key objective of the study is to foster the changing market demand from the view of various social, behavioral, personal, and economic transformations on individual investment decisions at Shanghai and Shenzhen stock markets in China. The study used a questionnaire to survey a total of 345 investors holding stocks of listed companies at both Shanghai and Shenzhen stock exchanges. The results of the study indicate that behavioral factors, personal factors, and market factors have a significant positive impact on individual investor investment decisions in both shanghai and Shenzhen stock markets while social factors have an insignificant negative impact on individual investor investment decisions in both shanghai and Shenzhen stock markets. Chinese stakeholders will understand better the role of various social, behavioral, personal, and markets factors and their impacts on stock market performance at both Shanghai and Shenzhen stock markets. The findings have important insights for various stakeholders i.e. government, regulatory bodies, practitioners, academia, industry, and researchers.

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.

Changes in Banking Industry Stock Prices: The Role of Risk, Good Governance, Earnings, and Capital

This research, with direct implications for banking professionals and investors, aims to empirically test and analyze the RGEC components, which consist of risk profile, good corporate governance, earnings and capital, and their influence on banking stock prices listed on the Indonesian Stock Exchange (BEI). The sample for this research was determined using a purposive sampling technique, resulting in a total sample of 21 companies over 3 periods, namely 2016-2018. The data analysis technique used is Partial Least Square (PLS). The research results, which have immediate relevance for investment strategies, show that earnings proxied using ROA positively affect stock prices, while risk profile, good corporate governance, and capital do not. This indicates that earnings are still a strong signal for investor investment decisions. Therefore, the company must succeed in maintaining and increasing its earnings to become an investment choice for investors. However, even though good corporate governance and capital do not influence stock prices, it doesn’t mean that banking companies should ignore their governance and capital. These two factors are essential in maintaining good performance.

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.

Role of behavioral biases in the investment decisions of Pakistan Stock Exchange investors: Moderating role of investment experience

Despite many revolutionary asset pricing models developed over the past decades, traditional finance does not explain investor behavior very well. The purpose of this study is to examine the influence of behavioral biases on the investment decisions of investors of Pakistan Stock Exchange. In addition, the moderating influence of investment experience investigated in this study. The findings were reported using a sample of 230 individual investors, who make their own investments, typically through a mutual fund, bank, or internet broker. They make investments to achieve their unique investment objectives, such as saving for retirement, a child’s education, or increasing their overall wealth. The influence of behavioral biases on investment decisions was calculated using regression analysis. Regression results show that beta and t-values are significant and have a significant impact on investment decisions. Regression findings show that Confirmation Bias, Gamblers Fallacy Bias, Negativity Bias, Bandwagon Effect Bias, Loss Aversion Bias, and Overconfidence Bias all have a substantial impact on Investment Decisions. Status quo prejudice and endowment bias have a favorable but minor influence on Investment Decisions. Investment Experience is regarded as an essential component that contributes to successful decision making under risk and uncertainty, however the results of this study show that moderating variables have a minor influence. According to the findings, the moderating variable had no effect on the connection between behavioral biases and investment decisions. And the reason for this is that behavioral biases persist regardless of investing experience.

Role of Locus of Control in the Relationship between Behavioral Biases and Investment Decision

The current study focuses on three heuristics commonly used in decision making; anchoring bias and representative bias with investor’s numeracy capability. This research explains the relationship between biases of investors in investment decision making of Pakistan Stock Exchange. The research also identifies the moderating role of locus of control between behavioral biases and decision making. Data was taken from 400 investors of Pakistan Stock Exchange. The results of the study revealed that representative bias and anchoring bias has a positive impact on investment decisions of the investors. However, the results also revealed that individual’s numeric capabilities do not affect his/her investment decision. Locus of control is used as a moderator in the study. Results show that presence of internal locus of control enhances the impact of biases on their investment decisions. Nonetheless, locus of control does not moderate the relationship between individual’s numeric capabilities and investment decisions. This study is helpful for both individual investors and the regulator in understanding the role of biases in the investment decision making.

Nexus between Chat GPT usage dimensions and investment decisions making in Pakistan: Moderating role of financial literacy

This study's primary goal is to investigate and gain better knowledge of the relationship between ChatGPT usage dimensions such as analyzing data, managing risk, optimizing portfolios, forecasting market trends, and conducting sentiment analysis and investment decisions of investors in the Pakistan stock market, as well as the moderating role of financial literacy. The sample for this study included individual stock market investors in Pakistan. Using a self-administered questionnaire and a cross-sectional design, a non-probability convenience sampling technique followed by snowball techniques was used to collect data from 388 active and potential individual investors. The study's findings showed that ChatGPT usage dimensions have a positive and significant impact on investment decision making. Furthermore, financial literacy is found to moderate the relationship between optimizing portfolios, forecasting market trends, and investment decision making. The study's findings outlined practical implications for the researcher, financial advisors, individual investors, governmental decision-makers, policymakers, and stock market authorities who are interested in leveraging the benefits of artificial intelligence and machine learning in investment decision making in the context of emerging economies like Pakistan.

Impact of Environmental, Social and Governance Factors on Investment Decision of Investors in Nepal

In recent years, there has been a growing emphasis on the impact of Environmental, Social, and Governance (ESG) factors in investment decision-making. This study explores the relationship between ESG factors and investment decisions, focusing on 392 individual investors in Pokhara, Nepal. A survey-based research design was employed, analyzing data through Confirmatory Factor Analysis and path analysis. The results indicated a significant positive impact of social and governance variables on investment decisions, whereas environmental factors showed no significant influence. Investor awareness was found to moderate the relationship between governance factors and investment decisions, emphasizing its importance. The independent variables explained approximately 69 percent of the variation in investment decisions. The study's findings underscore the significance of ESG factors in guiding investment decisions. This research offers valuable insights for brokerage houses and companies, facilitating the development of investment products tailored to individual investors' ESG preferences. These efforts contribute to promoting sustainable investment practices in Nepal.

Determinants of Stock Investment Decisions of Investor in Environmental Wetlands

This study aims to examine the determinants of investment decisions of stock investors in wetland environments. Investment is an activity of investing funds or capital in other parties, either directly or indirectly with the hope that the owner of the capital will get a number of benefits from the results of investing the funds or capital. There are several factors that influence investment decisions including financial literacy, Risk Perception, Financial Experience and Herding. This study uses a quantitative research approach. The population in this study are the investors in the Wetland Environment, with a sample of 122 investors who fit the predetermined criteria. The sample sampling technique in this study used non- probability sampling. The data that used in the study are primary data, with the data collection method in the form of a questionnaire distributed using google form. The data analysis technique uses multiple regression analysis by first conducting a validity test, reliability test, and classical assumption test. The results found that Financial Literacy, Financial Experience and Herding behaviour have a positive effect on Investment Decisions, while Risk Perception has no effect on investment decisions.

Socio-Economic Determinants of Stock Market Behaviour: A Comprehensive Analysis of Investment Pattern and Decision-Making

Abstract Investor's investment decisions and market outcomes are thought to be systematically influenced by both market dynamics and information structure. Therefore, the study’s main purpose was to identify the factors influencing the investment decision of stock market investors of India. The study also identified the effect of investors' socioeconomic profiles on their stock market investing behaviour. The study was conducted on 151 individual stock market investors of Haryana state. To collect the data a structured questionnaire was used. The data were analyzed using frequency, percentage, crosstab, chi-square, KMO test, Bartlett's test of sphericity and factor analyses. The reliability of data was tested using Cronbach's Alpha. Hypothesis was set to know whether there is any relationship between demographic variable and investment pattern of investors. This study found three major factors which influence the investment decisions of stock market investors. The factors that were discovered were the investing goal, liquidity, and risk attitude. The hypothesis's outcome demonstrated a favorable correlation between investors' investing patterns and demographic characteristics.

Portfolio Based on AR Model Using 5 Stocks

An investment portfolio is a collection of stocks, bonds, and financial derivatives held by investors or financial institutions, aimed at diversifying risks and maximizing returns. This article selects stocks of Manulife, BOA, Apple, PLC, and National Pharmaceutical Group from October 21, 2022 to August 9, 2023. This article uses AR model, minimum variance model, and maximum Sharpe's ratio model to predict stock prices, and establishes investment portfolios based on the predicted values. Firstly, based on the first 75% of the data, this article predicts the last 25% of the data. Secondly, based on the prediction, the minimum variance model and the maximum Sharpe ratio model are applied and compared with SP500 within the same time frame. However, the results indicate that the SP500 index performs best in terms of yield. This study suggests that purchasing market index funds is an important investment decision for investors during the volatile US dollar interest rate hike cycle.

Biased Behavior and Stock Investment Decisions of Investors in Bali, Indonesia

Investment decisions are often affected by irrational behavioral factors that cause improper logical analysis. Herding and overconfidence are two behaviors that lead to biased decision-making, specifically regarding investment. Therefore, this study aimed to test the effect of herding and overconfidence on investment decisions moderated by financial knowledge and attitude. Using a sample of 267 stock investors, the test was conducted with PLS-SEM. The results showed that overconfidence positively influences individuals' investment decisions, while herding has no effect. Financial knowledge and attitude were found not to moderate this effect but could act as predictor variables with a significant positive impact on investment decisions.
 Keywords: Herding; Financial Knowledge; Financial Attitude; Financial Behavior Overconfidence.

Financial Literacy and Investment Decisions in Nepalese Share Market

This study examines the role of financial literacy on the investment decisions of investors in the Nepalese share market. Financial literacy is expressed in personal saving, risk tolerance, investment options, and financial knowledge. The data were collected through a structured questionnaire using the convenience sampling method from 384 respondents of Kathmandu Valley. Pearson correlation and multiple regression analysis have been used to analyze data. The study results revealed a positive and significant relationship between the dimensions of financial literacy and investment decisions in the Nepalese share market. Low financial literacy and lack of financial information affect the ability to save and make sound financial decisions. Ignorance of basic financial concepts results in negative behavior in saving and investment decisions. The study suggests conducting financial education programs to help improve investors’ savings and financial decisions.

The Behavioural Pattern of Investment in the Financial Market: A Study of the Individual Investors

Most financial theories are based on the assumption that everyone is logical and considers all available information before making decisions, which is not the case in reality. This study aims to analyse the behavioural determinants that drive the investment decision of individual investors in J&K. Non-probability convenience sampling was adopted; through which 392 responses from individual investors were gathered using a self-administered questionnaire. The t-test and ANOVA were used to determine the effect of demographics on investment behaviour (IB), whereas logistic regression was used to determine the impact of IB determinants on investment decision-making. The findings show that the investment decisions of investors in Jammu and Kashmir (J&K) are significantly influenced by age and occupation. The results also indicate that cognitive bias, investment goals and saving orientation have a substantial influence on IB but overconfidence, risk perception and decision influencers do not have any significant impact on the investment decision of individual investors in J&K. By gaining awareness of these determinants, investors can make more rational investment decisions, leading to enhanced market efficiency and achieving better outcomes in the financial market.

Siyasi ve Ekonomik Gelişmelerin BİST Yatırımcı Kararlarına Etkisi: Türkiye’den Kanıtlar

The aim of this study is to determine whether political and economic developments have an effect on the current investment decisions of BIST investors. According to the results of the study, H1, H2 and H4 hypotheses, which measure the effect of investment advice, election and presidential debates, and economic and political explanations on investors' investment decisions, were accepted, while H3, H5, hypotheses that measure the variables of self-efficacy and the state of the stock market were rejected. Among these three variables, it was seen that the economic and political explanations (0.432) affected the investment decisions of the investors the most, followed by the election and presidential debates (0.226). It was understood that investment recommendations affected the third place (0.130).

THE DETERMINANTS OF STOCK PRICE VOLATILITY IN PLANTATION INDUSTRY IN INDONESIA DURING 2016-2020

Stock prices in the market can react quickly to information from the market. This information makes stock prices volatile. The purpose of this study is to analyze the effect of dividend policy, leverage, growth in assets, and auditor quality on stock price volatility in the plantation industry listed on the Indonesia Stock Exchange for the period 2016 to 2020. This study uses multiple linear analysis using SPSS, and data collection by purposive sampling. The data used in this study is 75 data from 15 companies. The results of this study show that dividend and leverage policies affect stock volatility, while asset growth and auditor quality have no effect on stock volatility. The implication of this research is that companies that want to maintain the volatility of their shares must regulate leverage and dividend policies which are positive signals for investors in investment decisions.

Pengaruh DER dan NPM terhadap Nilai Perusahaan pada Perusahaan Properti dan Real Estate yang terdaftar di BEI

This study aims to identify significant influence between Debt to Equity Ratio (DER) and Net Profit Margin (NPM) on firm value proxied by Price Book Value (PBV) in property and real estate companies listed on the Indonesia Stock Exchange. This study uses a multiple linear regression method with quantitative approach and uses a purposive sampling method with sampling techniques on property and real estate companies listed on the Indonesia Stock Exchange for the 2017-2019 period. The final sample of the study was 39 firm-years. The results of this study indicate that there’s a significant effect of Debt to Equity Ratio (DER) on Firm Value and there’s no significant effect on Net Profit Margin (NPM) on Firm Value. This research was expected to be a reference and material for consideration in making investment decisions for investors, as well reference for considering company value and efforts to increase company value in order to attract investors to invest their capital for the company. Keywords : DER, NPM dan Firm Value

The Effect of Good Corporate Governance, Profitability, and Corporate Social Responsibility on Market Reaction and Company Value in the Registered Mining Industry on the Indonesian Stock Exchange

Purpose: The objective of this analysis was to analyze the direct impact of good corporate governance, profitability and corporate social duty on market response and company value. Theoretical framework: The data analysis process used in this research is a descriptive, namely, analysis that aims to determine the extent to which the variables of moral corporate governance, profitability, and corporate social responsibility influence market reactions and firm value in mining companies listed on the Indonesia Stock Exchange which are based on empirical and theoretical facts. Design/methodology/approach: This research uses secondary data from 27 mining companies listed on the Indonesian Stock Exchange between 2017 and 2019. The data analysis methods used in this study are quantitative and qualitative descriptive research methods, as well as relational research methods. The analysis used to test the hypothesis using SEM (Structural Equation Model Analysis). Findings: The consequences of this report show that good corporate governance (1) does not directly affect market reactions with a positive correlation. (2) profitability does not directly affect market response with a negative correlation; (3) corporate social responsibility does not directly influence the market response in a positive direction; (4) good corporate governance does not directly affect company value, with a positive relationship; Research, Practical & Social implications: Since there are no evaluation standards or standard form for determining the rate of diffusion of corporate social responsibility, the assessment of the spread of corporate social responsibility remains subjective, so there will be differences in each researcher. The announcement of the dissemination of corporate social responsibility is made by the company, together with the announcement of the Annual Report, so there are other aspects made by investors in investment decisions. Originality/value: corporate social responsibility does not directly disturb the company's values with a positive relationship; market response does not directly affect company value with negative correlation; good corporate governance does not directly affect company value through a negative correlation market response; profitability does not directly affect company value through market feedback with a positive correlation.