Investment Intentions Research Articles

Determinants of Investment Decision Through Sharia Financial Technology

The level of investment through Islamic Peer-to-Peer (P2P) Lending ascends. This study aims to determine the direct effect of perceived behavioural control, perceived benefit, perceived easiness, and perceived risk on investment decision through sharia peer-to-peer lending. The further purpose is to find out the indirect effect of perceived behavioural control, attitude toward investment, and subjective norm on investment decision through sharia peer-to-peer lending intervened by investment intention. Through primary data distributed using online questionnaire to residents who live in Indonesia and investing through Sharia Financial technology peer-to-peer lending platform, final sample was 135 respondents. The data analysis technique used is Structural Equation Modelling Partial Least Square (SEM-PLS). The result of this study finds that there is a significant effect on the perceived behavioural control, perceived easiness, and perceived risk on investment decision through sharia peer-to-peer lending while the insignificant effect of sharia compliance and perceived benefit on investment decision through sharia peer-to-peer lending has been found. Subsequently, perceived behavioural control, attitude toward investment, and subjective norm have no effect at all on investment decision through sharia peer-to-peer lending intervened by investment intention.

The Effect Of Investment Knowledge, Social Media Influencers, And Financial Literacy On Investment Interest In The Capital Market In Students Of Management Program At Duta Bangsa University

Investment is becoming a trend that stands out in society, therefore cases of fraud or illegal investments via the internet have been increasingly happening lately, students can become victims if they do not have adequate investment knowledge, sufficient financial literacy, and good financial management. This study aims to determine the influence of investment knowledge, social media influencers and financial literacy on students' interest in investing in the capital market. The research method used is descriptive quantitative with multiple linear regression analysis. The results of this study found that investment knowledge had a positive and insignificant influence on investment intention, social media influencers and financial literacy had a positive and significant effect on investment interest. The implications of this research are for related party policy recommendations, financial education and financial product development.

Internal and External Factors Influencing Rural Households’ Investment Intentions in Building Photovoltaic Integration Projects

Building integrated photovoltaics (BIPV) contributes to promoting green and low-carbon transformation in rural areas. In order to better guide rural households to invest in BIPV projects and promote the goal of “carbon neutrality” in China’s building sector, this study integrates the theory of planned behavior (TPB), the social cognitive theory (SCT), and the PEST analysis framework. It constructs a theoretical model from the perspective of “External Factors-Internal Psychology-Investment Intention” to investigate rural households’ investment intentions toward BIPV projects and their influencing factors. Basic data were collected from 488 valid questionnaires from rural households in Henan Province, and the theoretical model was empirically tested using structural equation modeling. The results show that the model constructed from both internal and external factors effectively explains rural households’ investment intentions (II) toward BIPV projects (R2 = 0.89), with investment attitude (IA) being the strongest psychological motivation leading to their II. All four external factors—policy, economic, social, and technological—positively influence II with diminishing effects. Additionally, the policy factor has the most significant effect on IA, while the economic factor has a more prominent effect on perceived behavioral control (PBC), and the technological factor has a relatively weaker effect on the two psychological factors. Furthermore, the four external factors indirectly influence investment intentions through the two psychological factors of IA and PBC, with the mediating effect of IA being higher than PBC. Based on the findings, this study proposes effective suggestions to enhance rural households’ investment intentions toward BIPV projects.

Modelling the theory of planned behaviour to evaluate the investment intention of generation Z in the speculative market: stocks, Forex and cryptocurrencies

PurposeThe current research takes a closer look at the investment intention of Generation Z and its relation to investing in a speculative market. The study applies the theory of planned behaviour (TPB) to understand the dominant factors leading to Generation Z investment decisions in speculative markets. The main objective is to identify whether these decisions are learnt decisions or herd behaviours.Design/methodology/approachStructural equation modelling is used to evaluate the research model, and examine the mediation effect of financial literacy using bootstrapping in AMOS software. Information was gathered from 271 students studying at the University of Technology and Applied Sciences. The questionnaire used for the survey was adapted from previous related studies examining the TPB.FindingsThe findings show financial literacy and behavioural outcome (attitude) are key components associated with investment intention. Motivation to comply (subjective norm) affects the intention to invest if mediated by financial literacy. The subjective norm has no bearing on the intention to invest in a speculative market. This implies social peers have no bearing on their intention to invest unless mediated by financial literacy.Research limitations/implicationsThe main limitation of the study is that the group from which the sample is drawn consists of all students at a state-funded university who receive stipends. This limits the applicability of related findings. Furthermore, the variables have dynamic properties, which implies their impacts may vary over time.Practical implicationsGeneration Z comprises a large number of small investors who can make a significant difference to the overall economic trends of the country. The digital world, which is time- and space-infinite, is shaping the next generation. It is only possible to reach and sway their opinions by conducting extensive behavioural science research.Social implicationsAcademic institutions ought to be viewed as a resource for conducting additional in-depth research on a variety of subjects to assist and shape the current generation for a better future.Originality/valueAlthough the TPB has been used by many researchers to explore the behavioural intention of Generation Z, very few have used financial literacy as a perceived behaviour control to study its direct and indirect effects on behaviour intention.

Theory of Planned Behavior: The Effect of Financial Literacy and Risk Tolerance on Investment Intention

Research Aims: This research aims to analyze how factors such as attitude, subjective norms, perceived behavioral control, financial literacy, and risk tolerance influence the investment intentions of university students. By focusing on these variables, the study seeks to provide a comprehensive understanding of the determinants of investment behaviors among this demographic.
 Design/methodology/approach: Utilizing the Theory of Planned Behavior as a guiding framework, the study employed a quantitative research approach. A survey, comprising structured questionnaires, was administered to a sample of students currently enrolled at the University of Lampung. The responses were then analyzed using multiple linear regression to identify significant predictors of investment intentions.
 Research Findings: The analysis revealed that attitude and perceived behavioral control are significant predictors of investment intention among University of Lampung students. Contrary to expectations, subjective norms, financial literacy, and individual risk tolerance did not show a significant direct influence on the investment intentions of the participants.
 Theoretical Contribution/Originality: This study contributes to the body of knowledge in financial behavior theory by contextualizing the Theory of Planned Behavior in the realm of student investment intentions. It offers original insights into the relative importance of various psychological and educational factors in shaping investment behavior among university students, a demographic that is often underrepresented in financial behavior research.

Impact of banking functions on online investment intention in India: Examining the mediating role of service experience

The study aimed to determine the various antecedents of banking functions that may lead to consumers’ intention to use online banking channels for investment with the role of service experience in mediating the relationship between banking function, online investment intention, cost perception, and behavioral factors. Data were collected through an online survey to understand consumer perceptions and behavioral intentions among online banking users in India. The population of this study is Indian residents who are customers of banks providing online services. Purposive sampling and snowball sampling were used as sampling methods. The study used an online survey with a list-based sample frame using social media chat functions or messaging applications in which the Google forms link was shared. A total of 561 valid responses were successfully accumulated from 1,136 Google forms, indicating a response rate of 61.78%. The study employs SEM-PLS using PLS 2.0 software for data analysis. The results validated the direct effect of online investment intention through a bank on different components of banking channel function linkages: information and service awareness, transactional efficacy, trust, brand effect, convenience, and information technology support (p < 0.05). The findings also highlighted that customer service experience mediates the relationship between banking channel function and consumers’ investment intention through online banking channels, significantly impacting customers’ cost perception and behavioral factors (p < 0.05). The research implications are expected to improve the banking service experience of customers and might motivate them to use the online banking channel for investment.

E-trust Mediates the Role of the Robo-Advisor Feature on Mutual Fund Investment Intention Through the Bibit Application of Gen Z Malang Raya

Mutual Fund investment is the right instrument for beginners and currently, with advancing technologies, it can facilitate the process of investing, for instance, using Bibit.id applications. One of the flagship features is a helper for the target user (a beginner or novice investor) to get the optimal portfolio, named Robo-Advisor. However, the adaptation process requires willingness or trust and is expected to increase intention in investing. Hence this study aims to test the role of e-trust in mediating between technology (Robo-Advisor) and behavior intention (investment intention). This study is an explanatory research that processes data from 120 respondents in the category of Gen Z in Malang Raya with specific criteria using the SEM-PLS method. The result concluded that the Robo-Advisor feature has a direct and significant effect on e-trust, the e-trust has a direct and significant effect on investment intention, and the Robo-Advisor feature affected investment intention mediated by e-trust. However, no direct influence was found on the Robo-Advisor feature on investment intention. So, Gen Z is a potential novice investor who intends to invest because it helped to get a suitable portfolio by entrusting the implementation of Robo-Advisor technology.
 Keywords: Robo-Advisor, E-trust, mutual fund, Bibit, Investment

Analysis of Factors that Influence Investor Interest in Investing in Islamic Mutual Funds (Case Study: Java Island Region)

Sharia mutual fund investment in Indonesia continued to experience positive developments as an investment instrument. However, the fact was that the nav of Islamic mutual funds was still unable to closed the gaped with the total nav of conventional capital markets as a whole. The purpose of this studied was to analyze the factors that influence investors' decisions in investing in Islamic mutual funds. The method used in this researched was sem-pls. Respondent criteria in this studied was sharia mutual fund investors and domiciled in a province on the island of java. The theoretical approached in this studied was the theory of planned behavior with variabels of motivation, knowledge, re-perception, technological advances, and product information. The results of this studied indicate that the variabels motivation, knowledge, perceived returned, advances in technology, and product information had a positive and significant influence on investment intentions. The results of this studied could been used by securities companies and regulators to increase the number of investors or planning policies regarding Islamic mutual funds.
 
 Keywords: Investment, Capital Market, Investor Interest, Sharia Mutual Funds.

When personality pays: observer rating of personality and financial success of equity crowdfunded startups

ABSTRACT This study investigates the value of third-party ratings of personality in investor pitches for predicting the investment intention and successful equity crowdfunding of U.S.-based startups. Based on 1175 ratings of 100 randomly selected investor pitch videos, we find that not only do investors’ impressions of entrepreneurs Big Five personality traits predict investment intention but that several of these also predict entrepreneurs’ actual crowdfunding success (particularly: openness, conscientiousness and extraversion). The study contributes to our knowledge of the links between (perceived) individual-level traits of the entrepreneur and their ability to finance a venture, a key challenge in the early stages of startups.

The influence of islamic capital market literacy toward intention to invest in islamic capital market: Does risk perception mediate the relationship?

Research aims: This study was motivated by the limited study on the Islamic capital market, mainly in the behavioral finance field. Moreover, the incongruity findings in prior research investigations suggest additional exploration to elucidate the correlation between literacy and investing intention. This study, therefore, aims to clarify financial literacy roles in investment intention as mediated by risk perception. Specifically, the effect of Islamic capital market literacy on the intention to invest in the Islamic capital market was scrutinized.Design/Methodology/Approach: The present study employed quantitative methodology to address the issue under investigation. The study's sample was comprised of 200 respondents from the Generation Z investor population residing in Malang City. The research instrument used a set of seven Likert scales. The present study also utilized Partial Least Squares Structural Equation Modelling (PLS-SEM) for data analysis.Research findings: The research findings uncovered that Islamic capital market literacy affected risk perception and investment intention, and risk perception had a direct effect on investment intention. In addition, risk perception also successfully mediated the effect of capital market literacy on Gen Z's investment intention in the Islamic capital market.Theoretical contribution/Originality: This research has made a valuable contribution to the existing body of Islamic capital market literature, which has received limited attention. The research highlights the significance of Islamic capital literacy and establishes a favorable perspective of risk as a practical aspect. The results also have valuable input for the government in developing policies that promote increased involvement of young individuals in investing activities by enhancing literacy levels. Practitioner/Policy implication: The research highlights the significance of establishing a favourable perspective of risk as a practical aspect. The results of this study can be a helpful asset for governmental organisations seeking to develop policies that promote increased involvement of young individuals in investing activities by enhancing literacy levels. Research limitation/Implication: Nevertheless, one problem identified in this study is the lack of differentiation between respondents based on their level of literacy and the duration of their engagement. This aspect holds significant importance in influencing an individual's perception of risk.

Beyond age stereotypes: Unveiling the investment intentions of young individuals during the COVID-19 pandemic

This study examines personality traits, financial literacy, and risk tolerance for investment intentions. In addition, this study also examines the role of risk tolerance as a mediator in the influence of personality traits on investment intentions. A quantitative research method is used to measure personality traits, financial literacy, risk tolerance, and investment intention. A survey was conducted among young individuals in Indonesia. Respondents came from various regions in Indonesia, especially those from Java, Indonesia. The number of samples was 405 questionnaires. The results show that several personality traits, such as extraversion, neuroticism, and openness, affect investment intentions. However, the results show conscientiousness and agreeableness do not affect investment intentions. Researchers have found that extraversion and conscientiousness do not affect risk tolerance, but neuroticism, openness, and agreeableness do. Financial literacy and risk tolerance are also proven to affect investment intentions. When the mediation effect was tested, it was found that neuroticism, openness, and agreeableness affect investment intentions. On the other hand, risk tolerance does not act as a mediator variable between extraversion and investment intention. The practical implication of the study lies in assisting stock exchanges in developing countries to craft effective strategies for attracting Generation Z and Alpha investors, particularly during periods of economic volatility.

Economic Education, Digital Literacy and Intention to Invest Among Students: The Mediating Role of Financial Attitudes

The pandemic has raised the students’ activities in finding income, ranging from entrepreneurship to investing intention. This study aims to determine the role of economic education and digital literacy on student investment interest in universities during the Covid-19 period. In the analytical model proposed, it is assumed that the financial attitude variable is a mediating variable in education and financial knowledge in investment intentions. Ajzen’s Theory of Planned Behavior and Bandura’s Social Learning Theory was developed for the research model. The research adopted quantitative methods using survey research data from saturated sampling techniques. The participants in this study were students of Universitas Negeri Jakarta who are members of the Indonesian stock exchange investment gallery organization. From the 234 proposed questionnaires, 203 questionnaires were returned and filled out completely for data analysis. The study results confirmed the three hypotheses and rejected the four proposed hypotheses. Economic education affects student investment intentions and significantly affects financial attitudes. However, digital literacy affects students’ investment intentions but fails to shape investment intentions through financial attitudes. Another finding is that economic education and digital literacy have no effect on shaping financial attitudes, but financial attitudes influence students’ investment intentions during the pandemic. Keywords: economic education, digital literacy, intention to invest, financial attitudes, covid-19 period

What factors affecting investment decision? The moderating role of fintech self-efficacy.

This study aims to determine, from the perspective of investors, the factors that predict Islamic unit trust (IUT) investment intentions. Additionally, this paper examines the moderating effect of fintech self-efficacy (FSE) on the relationship between attitude and investment intention. A total of 392 data were collected from IUT investors in Malaysia and analyzed using partial least squares structural equation modeling. The findings reveal that subjective norms have the highest impact on investment intention, followed by attitude and FSE, while religiosity is not significantly associated with investment intention in Islamic unit trust funds. Attitude significantly mediates religiosity-intention and Islamic financial literacy-intention relationships. FSE significantly moderates the attitude-intention relationship. The results shed light on the key factors that increase investing behavior and have direct managerial implications with regard to marketing strategies and target markets. These findings suggest that IUT service providers should take the lead in attracting customers through effective and targeted marketing initiatives, particularly by enhancing customers' FSE and capabilities. This study provides empirical evidence on the interrelationships between Islamic financial literacy, religiosity, and FSE in examining investors' behavior using the Theory of Planned Behavior framework. The study explores the moderating role of FSE on the relationship between attitude and investment intention.

Factors Affecting Securities Investment Intention of Individual Investors in Vietnam

The study was conducted to investigate the factors influencing individual investor’s intention in stock markets based on the survey’s data of 175 individuals with interest and intention to invest in stock markets in Vietnam. Structural Equation Modeling (SEM) was used to test the hypotheses. The findings from the study indicated that (1) Risk Taking Propensity, (2) Attitude towards financial investment, (3) Subjective Norms had a significant positive effect on individual investors' investment intention. Meanwhile, Financial Knowledge has a negative impact on investment intention. Based on the study’s empirical analysis, some implications were proposed to help securities enterprises on how to attract individual investors.

CB-SEM vs PLS-SEM comparison in estimating the predictors of investment intention

This paper compares different structural equation modeling approaches in estimating the predictors of investment intention. Covariance-based structural equation modeling (CB-SEM) and partial least squares structural equation modeling (PLS-SEM) techniques were compared in the estimation of the model according to the theory of planned behavior (TPB). Additionally, the consistent PLS algorithm (PLSc) was taken into consideration in the methods comparison. To determine which factors affect stock investment intention, a TPB model with attitude towards behavior, perceived behavioral control, and subjective norm as independent variables was estimated using three different approaches. The factors in the model were measured using survey indicators and the final sample included 200 Croatian residents. The results mostly show matching conclusions about the investment intention predictors, with a small difference observed in the PLS-SEM method. It can also be concluded that the factor loadings are higher according to PLS-SEM, as well as the indicators of convergent validity and reliability. On the other hand, CB-SEM shows stronger structural paths than PLS-SEM, and PLSc results are closer to those of CB-SEM. While CB-SEM shows better model fit, PLS-SEM shows high predictive power. This research further provides explanations of the differences and guidelines on when to use which approach.

Determinan Niat Investasi Green Sukuk pada Investor di DKI Jakarta

This study aims to investigate the intention behavior of investors in DKI Jakarta when investing in green sukuk, using variables supporting environmental protection (SEP), the Theory of Planned Behavior (TPB) model, and Islamic financial literacy as determining factors. TPB is a research model consisting of attitude, subjective norm, and perceived behavioral control variables. SEP and Islamic financial literacy variables are included as factors that can also influence an individual's decision to invest. The research method used is quantitative, employing survey techniques and questionnaires as data collection tools. The research is conducted in the DKI Jakarta area, with respondents who are residents of DKI Jakarta. Hypothesis testing is done using the Partial Least Square-Structural Equation Modeling (PLS-SEM) method with multiple regression analysis. The results of hypothesis testing indicate that attitudes towards behavior, subjective norms, perceived behavioral control, and support for environmental protection significantly influence the intention to invest in green sukuk. However, Islamic financial literacy does not have a significant influence on investment intention.

Impact of Cognitive Biases on Investment Intentions: Exploring the Mediating Role of Self-Esteem among Indian Emerging Investors

Impact of Cognitive Biases on Investment Intentions: Exploring the Mediating Role of Self-Esteem among Indian Emerging Investors

The effect of health literacy on health investment intention: a cross-sectional study among petrochemical employees in China.

In the petrochemical industry, employees are exposed to various health hazards, which pose serious challenges to their health and hinder the sustainable development of the petrochemical industry. Investing in health has proved a potential strategy to enhance general health. However, global health investment is notably insufficient, mainly due to the public's limited intention to invest in their health. While past research has identified various determinants of health investment intentions, the relationship between health literacy and health investment intention remains somewhat controversial and needs more empirical validation. This study aims to assess the level of health literacy and health investment intention among employees in one of China's largest petrochemical companies and to explore the effect of health literacy on health investment intention. A cross-sectional study was conducted in a petrochemical company. The valid sample size for this study was 39,911 respondents. Data were collected using a designed questionnaire, including socio-demographic information, questions about health investment intention, and the "2020 National Health Literacy Monitoring Questionnaire." Several statistical analysis methods were employed, including descriptive analysis, Chi-square test, logistic regression, and multiple linear regression. The study disclosed an average health literacy score of 56.11 (SD = 10.34) among employees, with 52.1% surpassing the qualification threshold. The "Chronic Disease" dimension exhibited the lowest qualification rate at 33.0%. Furthermore, 71.5% of the employees expressed an intention to invest in health, yet a significant portion (34.5%) opted for the minimal investment choice, less than 2,000 RMB. Logistic regression analysis indicated a positive correlation between health literacy and health investment intention (OR = 1.474; p < 0.001). This association's robustness was further indicated by multiple linear regression analyses (β = 0.086, p<0.001). The employees' health literacy significantly exceeds the national average for Chinese citizens, yet the qualified rate in the "Chronic Disease" dimension remains notably low. A majority of employees have the intention to invest in health, albeit modestly. Furthermore, while health literacy does positively influence health investment intention, this effect is somewhat limited. Accordingly, personalized Health education should be prioritized, with a focus on improving chronic disease knowledge and facilitating the internalization of health knowledge into health beliefs.

Unpacking the Psychology of Investment Intention: The Role of Emotional Intelligence, Personality Traits, and Risk Behaviour

In the dynamic realm of wealth accumulation, investments demand a meticulous evaluation of both financial and nonfinancial aspects inherent in securities. Prudent decision-making surpasses a fixation on anticipated returns, requiring a nuanced assessment of an investment's potential to actualize desired earnings. This study challenges the presumption of investor rationality in traditional financial theories, emphasizing the profound impact of non-financial determinants on decision-making, including personality traits, emotional intelligence, and risk behavior. With a robust sample size of 396 respondents, the research establishes a statistically significant correlation between emotional intelligence, personality traits, risk behavior, and the intricate domain of investment decisions. For middleclass investors, a pivotal recommendation emerges: fostering a discerning comprehension of one's psychological attributes. Active collaboration with seasoned financial advisers is imperative, serving as a compass through the complexities of the modern financial milieu. This holistic approach, harmonizing financial acumen with nuanced psychological insight, proves indispensable for navigating intricacies and facilitating judicious investment decisions aligned with individual aspirations and risk thresholds. The nuanced integration of financial prudence and psychological acuity fortifies investment portfolios and establishes a resilient foundation for adeptly navigating the dynamic terrain of wealth management.

Evaluation of the Impact of Risk Tolerance and Financial Literacy on Investment Intentions of Securities Investors in Pakistan using the Theory of Planned Behavior (TBP)

Evaluation of the Impact of Risk Tolerance and Financial Literacy on Investment Intentions of Securities Investors in Pakistan using the Theory of Planned Behavior (TBP)