Investment Intentions Research Articles

Faktor-Faktor yang mempengaruhi Minat Investasi Mahasiswa di Pasar Modal

The purpose of this study was to determine the effect of expected return, self efficacy, perceive risk, subjective norms, perceived behavior control, and investment / transaction attitude on investment intention, especially students. The data used in this study are primary data collected from questioner that involve 383 respondents which are active students from various majors in West Jakarta who have an Investment Gallery on their college. Data analysis used multiple linear regression using Statistical Package for Social Science (SPSS). The result shows that expected return, self efficacy, perceive risk, subjective norms, and investment attitude have a significant effect to determine the investment intention. Meanwhile, perceived behavior control doesn’t affect investment intention in students.

가치관유형 군집별 부동산 투자특성

The purpose of this study is to examine how the behavior of real estate investment differs according to different types of value clusters. The time of the research was in 2021, when real estate investment was very active and the research project was verified through descriptive statistics and regression analysis using the SPSS 23.0 statistical package. As a result of the research analysis, the value type was classified into four groups: practicality-seeking type, success-seeking type, pleasure-seeking type and material-seeking type. For them, their financial attitudes (recognition of current and future financial possession, financial interest, and financial planning) had different influences on their real estate investment intention, which means each group showed specific aspects on the relationship concerned. Based on this study, we can infer that financial attitude factors of different value types are different in the real estate investment market and the behavior of each cluster is expected to be utilized in providing customized services or developing marketing strategy of real state industry.

Examining Islamic capital market adoption from a socio-psychological perspective and Islamic financial literacy

PurposeThis study aims to explore the Islamic capital market adoption model, based on the construct of Islamic financial literacy (IFL), the theory of planned behavior (TPB) and past behavior (PBR) in the context of a Muslim-majority country (Indonesia).Design/methodology/approachTo test the conceptual model, this study used data from 251 respondents with a diverse spectrum, and the partial least squares structural equation modeling technique was used to test the forecasting of the model.FindingsOverall, IFL and TPB dimensions (i.e. attitudes and perceived behavioral control) have a significant positive effect, either directly or indirectly, for investment intentions in the Islamic capital market. Also, the findings recommend the construct of PBR as an important predictor of investment intentions in Islamic capital markets.Practical implicationsThe study can be beneficially used for Islamic financial institutions to participate with the Indonesian government in affirming IFL to broader society, not only Islamic education institutions. It is related to the significance of IFL, where it can be utilized as an indicator that education on the concept and values of Islamic finance can positively establish attitudes in society and stakeholders.Originality/valueThis study is an effort to strengthen IFL as a key construct using a good measurement scale, in the context of the Islamic capital market investment. In addition, this study also provides the necessary impetus to analyze the relationship between the dimensions of TPB and PBR, either directly or indirectly.

Evaluation of investment preference with phantasy, emotional intelligence, confidence, trust, financial literacy and risk preference

PurposeThere is strong excitement during Ponzi schemes and financial bubble periods. This emotion causes investors to turn to “unknown and new investment instruments”. This study, the factors that made “unknown and new investment instruments” preferable to “known and experienced investment instruments” were investigated.Design/methodology/approachIt was taken into account unconscious like phantasy, emotional like emotional intelligence, both affective and cognitive like financial literacy and subjective beliefs like trust and overconfidence. In addition, risk preferences were measured with four different risk variables. In this context, data were collected by online survey method between November 2020 and May 2021 with convenience sampling. First, the data were collected from 832 participants in the pilot study. Additional data were also collected using convenience sampling and online surveys, and a total of 1,692 participants were obtained. Data were analyzed using Statistical Package for the Social Sciences (SPSS) 25 and AMOS 24.FindingsAs a result of the analyses made, the variables that lead investors to choose “unknown and new investment instruments” were determined as risky investment intention, phantasy, risk taking/risk avoidance, confidence, risk tolerance and subjective financial literacy. Trust and risk perception have a very weak effect on preferences. However, no effect of emotional intelligence and objective financial literacy was detected. In addition, a moderately positive and significant relationship was found between objective and subjective financial literacy. Subjective financial literacy was found to have a strong and significant relationship with emotional intelligence, confidence, trust, risky investment intention and phantasy.Originality/valueThis study investigates the factors underlying individuals' investment preferences from a broad perspective. We think that this study is unique in this structure and wide variables. We believe that the findings obtained in this manner are unique to both academics and practitioners. We also believe that the findings of the study will make an important contribution to understanding participation behavior in various Ponzi schemes and financial bubbles.

I Am Ready to Invest in Socially Responsible Investments (SRI) Options Only If the Returns Are Not Compromised: Individual Investors’ Intentions toward SRI

SRI, or socially responsible investment, is a relatively new concept used to describe an investment that considers social, ethical, and environmental concerns. The purpose of this study is to investigate if collectivism, concern for the environment, financial performance, and awareness of SRI influence an individual’s propensity to invest in socially responsible investments (SRI). Secondly, the study evaluates the influence of the TPB (Theory of Planned Behavior) model constructs, attitude, subjective norms, and perceived behavioral control on the SRI investment intention of individual investors. A structured questionnaire was used to collect data on 449 individual investors for this cross-sectional investigation. The data were then analyzed further with a two-step structural equation modeling technique performed in Smart PLS 3.2.9. The PLS-SEM analysis found that collectivism, environmental concerns, financial performance, and awareness of SRI all had significant positive effects on attitudes toward SRI, which, in turn, resulted in SRI investment intention. Further, subjective norms and perceived behavioral control had a significant impact on individuals’ intentions regarding SRI.

해외 부동산 직접투자의 인식에 관한 연구

The purpose of this study is to investigate and analyze the perception of direct investment in overseas real estate. The research method combines theoretical research and case study. In the case study, 100 real estate-related workers were surveyed on their perceptions of overseas real estate direct investment, and this was statistically analyzed. Considering the results of the analysis, As a result of the analysis, first, 94% were positive about the need for overseas real estate direct investment, and only 4% were negative. Second, as for preferred investment destination countries, “developed countries such as the United States, Canada, and Europe” were high at 41% and “developing countries such as Vietnam, the Philippines, and Malaysia” were high at 32%. Third, 91% were positive about Japanese real estate investment. Fourth, as for the motives for overseas real estate direct investment, “domestic strong regulation-oriented real estate policy” was found to be high at 56%, and “opaque future of Korean society” was found to be high at 25%. Fifth, in terms of investment intention, “stable rate of return” was 28%, “cheap ownership tax and capital gains tax” was 27%, and “certainty of ownership guarantee” was 23%. Sixth, as obstacles to direct investment in overseas real estate, “problem of overseas real estate management” was found to be high at 53%, and “ignorance of overseas real estate market” was found to be high at 29%. Considering the results of this analysis, the government suggests that a policy to support direct overseas real estate direct investment is needed to reduce investment risk and ensure stable investment for overseas real estate direct investors.

Understanding Impact Investment Intention Using the Extended Theory of Planned Behaviour

Impact investing is ‘blended value proposition’ that generates a mix of financial, social and environmental values for the investor, organization and businesses. This study aims to explore the factors influencing the Indian investors’ intention towards impact investing (II) using the theory of planned behaviour (TPB), extended with two constructs, that is, risk perception and internal motivation, to predict such a phenomenon in the Indian context. The data has been collected from 338 Indian investors who primarily engage in impact investing. The collected data have been analysed using two-step structural equation modelling. The findings of this study indicate a positive and significant impact of attitude, subjective norms and perceived behavioural control on investors’ intention towards impact investing in India. Risk perception has been showed the least positive influence on the investors’ intention whereas internal motivation has a highly positive influence on investors’ intention to invest for impact. This is the first attempt to measure investors’ intentions towards impact investing from the Indian perspective using the TPB model with the extended constructs, that is, risk perception and internal motivation, which is the novelty of this study. This study will help policymakers to take important regulatory measures to build an effective ecosystem for impact investing in India.

The Moderating Role of Financial Literacy on the Effects of Subjective Norms, Product Involvement, and Perceived Behavioral Control on Invest-ment Intention of Young Investors from a Mobile Wallet App in the Philippines

Investment has grown to be an industry of its own, becoming more diverse in portfolio, now not only in mutual funds and bonds, but now covering or blending with insurance, and growing in market size and reach extending to people who are yet to join the work force. Being an investor was made even more accessible through mobile wallet apps that allow individuals to start investing with just a few clicks of their cellphones. And, as this industry gets bigger, it becomes more important to determine the determining factors why young people start investing with their mobile wallet apps. This study aims to determine the moderating role of financial literacy on the effect of subjective norms, product involvement, and perceived behavioral control on investment intention of mobile wallet app users among the youth in the Philippines. An online survey was administered online to 407 young insurers from mobile wallet apps who are within the ages of 18 and 30. Moderated regression through path analysis determined that subjective norms, perceived behavioral control, and product involvement significantly affect the investment intention of young insurers. Further, financial literacy amplifies the effects of product involvement and subjective norms on investment intention. This research posits that educating people more to be financially literate will most likely lead to more people in the younger generation deciding to invest early for their future.

Predicting the antecedents of consumers' intention toward purchase of mutual funds: A hybrid PLS‐SEM‐neural network approach

AbstractThe current study intends to identify the behavioural antecedents of investors' attitude and investment intention toward mutual funds using a robust SEM‐ANN approach. It focuses on novel factors in the purview of the COVID‐19 pandemic, increasing digitalization and social media usage. The research outcome indicates that attitude (ATB), awareness (AW) and investment decision involvement (IDI) have a significant positive relation with investment intention (BI). In contrast, perceived barrier (PBR) negatively relates to investment intention. Herd behaviour (HB) and social media influence (SMI) do not influence investment intention toward mutual funds. Moreover, all the tested predictors share direct relation with the attitude toward mutual fund investment, barring perceived risk (PR), which has an inverse relationship. As per the outcome of ANN sensitivity analysis, attitude is the most crucial determinant of investment intention. It is followed by awareness (AW), perceived barriers (PBR) and investment decision involvement (IDI). Among the significant determinants of attitude, self‐efficacy (SE) is the most important determinant, followed by perceived usefulness (PU), perceived emergency (PEMER), subjective norms (SN) and perceived risk (PR).

Are Korea individual investors irrational in initial public offering (IPO) market? An explanation from the winner’s curse perspective

Individual investors are often regarded as irrational sentiment investors whose investment behaviour is affected by psychological factors. This study measures the actual investment return of individual investors who participated in initial price offering (IPO) stock investment in the Korean market from the short-term and long-term perspective and investigates the relationship with IPO characteristics that affect the investment sentiment of individual investors. Even though the underpricing of IPO stocks on the first day of listing on average reached 31% over the past 13 years, individual investors in the Korean stock market earned very little actual return on IPO stock investment. The market-adjusted return on IPO stock investment on the first day was about −0.5%, and even if they held IPO stocks for one year after listing, it was only 3.4%. The so-called winner’s curse, in which individual investors are allocated relatively many overvalued stocks appears to be present in the Korean IPO market. The allocation of IPO stocks by individual investors depends on several factors that reflect individual investors’ sentiment, such as past performance of previous IPOs, past industrial returns, institutional investors’ investment intent, offering size, an upward revision of the offer price, and issuing firm’s financial soundness. It was found that the higher the individual allocation rate, the lower the short-term investment return on the first trading day, confirming the winner’s curse risk of individual investors. However, in the long run, a reversal of returns was observed, in which the long-term returns of IPO stocks with high individual allocation rates rose. In order to mitigate the winner’s curse risk, it is desirable to reform IPO pricing mechanisms and allocation rules in a way that reduces the asymmetry of information between institutional and individual investors and reflects the subscription demand of individual investors.

Predicting investors’ intention to invest in the stock market during COVID-19: can we use an extended theory of planned behavior?

PurposeThis study aims to explain investors’ intention to invest in the stock market amid the COVID-19 pandemic by expanding the Theory of Planned Behavior (TPB).Design/methodology/approachThis study adopts a quantitative approach, and a questionnaire-based survey was conducted to collect responses from existing and potential individual investors. To test the relationships between variables, structural equation modeling was used.FindingsThe findings indicated that investors’ attitude and perceived behavioral control had a significant influence on investment intentions. Further, perceived knowledge of COVID-19 improved the ability to predict the intention to invest. Moreover, psychological risk significantly moderated the association between subjective norms related to investors and their attitudes. Overall, the tested model was able to better account for the intention of investors in stock market investments.Research limitations/implicationsIn this study, only the investor reactions in the context of an emerging market were evaluated, and future studies could focus on different market contexts and perform comparative studies. Financial markets could be considered as a mechanism that has a direct impact on the wealth distribution of society, and the key findings of this study could be used to promote investment in emerging markets, where participation is comparatively low.Originality/valueThe TPB was expanded by incorporating investors’ perceived knowledge of COVID-19 and psychological risk dimensions, which were then tested in an emerging market context to fill the knowledge gap identified in the contemporary behavioral finance literature.

Effect of Personality Traits on Investment Intention of People: Kazakhstan Case

The paper aims to study relationship between personality traits (“big five” traits, such as openness, conscientiousness, extraversion, neuroticism, and agreeableness), as well as financial literacy of retail investors on willingness to make investment decisions on financial assets in Kazakhstan. Survey collection method of 200 randomly selected people from different social statuses, geographical locations (cities, countryside) and ages via internet, printed papers, and face-to-face meetings. There were decided to approach exploratory study with pragmatic philosophical view. Due to the reason of usage questionnaire, quantitative approach will be the most suitable approach for the study. The research is tended to be completed during the one academic semester. Hence, cross-sectional study is the best fitted type of study for the research paper. Salary, extraversion, agreeableness, preferences on investment instruments and level of financial literacy have statistically significant positive impact on intention of people to participate in investment activities. Conversely, openness trait found to has statistically significant negative impacts on investment intention of participants. Other variables do not have a statistically significant negative or positive impacts on investment willingness within the country. Intention to make investment decisions can be identified by screening of secondary data received from related papers, intention to make risky investments and level of risk tolerance toward investment decisions. However, level of tolerance toward risks varies according to the individuals' level of neuroticism, agreeableness, as well as level of sadness, conscientiousness, and financial literacy.

Analysis of Key Factors Influencing Smart Court Development Based on Decision Making Trial and Evaluation Laboratory

This paper analyzes the state of the art in the development of smart courts in China since 2016 and explores the factors affecting the development of smart courts in China based on DEcision MAking Trial and Evaluation Laboratory (DEMATEL) and Interpretive Structural Modeling (ISM) models. The direct influence relationships between the factors were determined by data extracted from a questionnaire survey. Based on the resulting composite influence matrix, it was deduced that the factors that influence smart court development involve three groups: intrinsic factors, including pre-planning, promotion, network service, and the five main functional systems; transitional factors, including data collection, operation and maintenance, update; and proximate factors, including investment intention, equipment, and monitoring system. Drawing on the conclusion, this paper argues that the development of data collection, equipment, and monitoring system should be the priority in the smart court development, and a benign circulation will be achieved when the five main systems of smart courts are well-established as they can attract talents, investment, and other important factors.

Psychological and Behavioural Drivers of Short-Term Investment Intentions

Analysing the factors that influence the short-term investment intentions of investors is critical for investment institutions. If investment institutions are informed about these factors they can create a framework to more accurately profile their clients to provide clients with the desired liquidity, maturity dates and desired risk and return expectations. Risk tolerance is one of the elements that has been used over time to profile investors, however, this paper found that other factors should also be included. Therefore, this article aimed to determine what drives investors’ short-term investment intentions following a more sociological and behavioural approach by including investor personality traits, behavioural finance biases and investors’ risk tolerance behaviour. Secondary data was obtained from a private investment firm surveying private investors in South Africa. Male investors were also more likely to invest in the short-term compared to female investors. Several personality traits, risk tolerance and a single behavioural finance bias were found to influence investor intentions to invest in the short-term. It is therefore recommended to portfolio management companies that several sociological and behavioural variables do explain whether investors will be willing to invest in short-term or more long-term investment portfolios.

How Does Land Tenure Security Affect Farm Succession? Evidence from Apple Growers in China

The security of farmland property rights is an important factor that affects farmland investment and succession, and farm succession is highly significant for achieving sustainable agricultural development. In this study, based on survey data obtained from 1012 apple growers in Shandong and Shaanxi Provinces, we analyzed the impact of land tenure security on the farm succession willingness of farmers and related paths by constructing binary logistic regression and mediating effect models. The results showed that: (1) land tenure security plays a significant role in promoting the farm succession willingness of farmers; and that (2) land tenure security promotes farm succession willingness by improving the farmland investment intentions of farmers. In the future, reforms of the farmland property rights system need to ensure the security of farmland property rights. In addition, with the influence of climate change, it is necessary to encourage farmers with advantageous agricultural resource endowments to invest in farmland and intergenerational transfers, as well as inducing farmers who lack advantageous agricultural resource endowments to conduct non-agricultural transfers, thereby providing more opportunities and a greater development area for agricultural land transfers and agricultural-scale operations.

Do Social & Psychological Factors Affect Investment Intention in Islamic Capital Markets?

This research aimed to predict social and psychological factors affecting individual investment decision in the Islamic capital market. Furthermore, the Theory of Planned Behavior Model (TPB) was used to explain irrational investor decisions affected by cognitive biases. We attempted to correct the pessimistic view of investors on the Islamic capital market using social & psychological perspectives. This study used a self-administered survey and obtained 82 investors and non-investors as respondents. The main criteria of individuals selected as respondents of the study were those who knew about the stock market and have heard the term Islamic capital market. This paper provided empirical insights on how the TPB model successfully explains the variance of change in investment intention. The results indicated that all predictors had a significant positive effect on individual investment intention. Individuals tend to exhibit a cognitive bias that lead to irrational decisions because individual’s attitude and PBC shape false perception of the usefulness of the Sharia capital market.

Application of Theory of Planned Behavior (TPB) in Cryptocurrency Investment Prediction: A Literature Review

This study aims to identify the application of Theory of Planned Behavior to predict people's intentions to invest in cryptocurrencies. Theory of Planned Behavior remains the most prominent theory in behavioral research to predict one’s intention or behavior. This research selected and reviewed articles related to the application of Theory of Planned Behavior. Data was collected from journals, papers, books, and websites related to the theory of planned behavior (TPB) and cryptocurrency. This study revealed that Theory of Planned Behavior is valid and reliable to measure cryptocurrency investment intention. Self-efficacy was used to as a proxy for perceived of behavioral control. This study can be used to develop responsive strategies.

Emotional Intelligence, Risk Aversion, Locus of Control and Risky Investment Intentions

Emotional Intelligence, Risk Aversion, Locus of Control and Risky Investment Intentions

Is the future of bitcoin safe? A triangulation approach in the reality of BTC market through a sentiments analysis.

Bitcoin (BTC) prices are fluctuating continuously to the extremes. The Bitcoin market witnessed a crash during the second quarter of 2021 that was purely guided by the investors’ sentiments. Are the Bitcoin prices influenced only by market sentiments or do any factors influence them? In this paper, we applied a triangulation approach; mixed-methods research was used in which a qualitative study was complemented by a quantitative method. Both the qualitative and quantitative data of time periods 2016–2021 were examined to find whether the Bitcoin market prices are influenced by market sentiments. For analysing market sentiments, the posts and sentiments from 2016 to 2021 of an internet forum “Bitcointalk” were used. For strengthening the findings of qualitative analysis, we used quantitative data of the BTC market. We also used search data from Google Trends for providing further insights. Our research shows a crossmatch between quantitative trends on Bitcoin market prices and qualitative matrix of sentiments. We have also observed an artificial investment intention in the form of digital nudges playing the field of the Bitcoin market to boost investment.

Do celebrity endorsements influence stock investment intentions?

PurposeCelebrity endorsement is a preferred marketing communication strategy adopted by business firms. The present study suggests theoretical underpinnings for investigating the effect of celebrity endorsement on individual investors' intentions to invest in the shares of companies. The study integrates marketing communication and behavioural finance theories to understand investor behaviour in the stock market.Design/methodology/approachThe study used a questionnaire based on a conjoint analysis technique. The retail investors from India filled out the questionnaire. The authors developed an orthogonal design to generate retail investors' investment intentions and applied the full-profile conjoint method.FindingsThe results reveal that investors prefer to invest in technology-related firms when they employ entertainment celebrities to endorse their products. Investors prefer that entertainment celebrities' personalities match the single brand only they are endorsing. Further, investors choose to invest during corrective market trends in emerging economies, such as India.Originality/valueThe study offers practical implications for corporate entities and marketing professionals by analysing retail investors' investment intentions in financial markets.