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1
Virlics, Agnes. "Emotions, Mood and Decision Making." International Journal of Applied Behavioral Economics 3, no. 2 (2014): 48–69. http://dx.doi.org/10.4018/ijabe.2014040104.
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Decisions are made according to a complex cognitive and emotional evaluation of the situation. The aim of the paper is to examine the effect of mood on risky investment decision making by using a mood induction procedure. The paper investigates how happy and sad mood affects risky investment decision making and whether there is a difference between the perception of fix investments and monetary investments. The analysis has been conducted focusing on individual investment decisions. Data for the research comes from a laboratory experiment, where 166 participants in happy, sad and neutral mood, filled out a questionnaire of investment decisions. The results indicate that mood does affect investment decision making, and positive and negative mood might have similar effect on the investment decision.
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Umair, Mahammed, and Ganapathi R. "Factors Affecting Investment Decisions, Information Search and Investment Decisions of Investors." Journal of Management and Entrepreneurship 19, no. 1 (2025): 38–51. https://doi.org/10.70906/20251901038051.
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Investors carry out an array of analyses and personal judgments on investments before making any decision relating to their investments and it is supplemented by decision and investment techniques and various factors including information on investment and the market influence decisions of individuals relating to their investments. The findings elucidate that overconfidence, economic expectation and risk tolerance have influenced the investment decision of investors significantly and positively, whilst, conservatism has influenced the investment decision of investors significantly and negatively. Further, overconfidence and economic expectation have influenced information search directly, positively and significantly, whilst, risk tolerance and conservatism have also influenced information search directly, negatively and significantly. Besides, information search has influenced the investment decision of investors directly, significantly and positively. Therefore, only the five hypotheses are supported by the findings
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Meng, Chuan, and Ainur Kaiyrbayeva. "FACTORS INFLUENCING THE DECISION TO INVEST." Izdenister natigeler, no. 2 (102) (June 29, 2024): 566–72. http://dx.doi.org/10.37884/2-2024/55.
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Making an investment decision is an important stage for investors, entrepreneurs and companies seeking to optimize their investment portfolios and achieve financial goals. This article examines the main factors influencing the investment decision-making process. In particular, the economic, financial, political and social aspects that can influence the decision to invest in certain assets or projects are highlighted. In addition, methods of analysis and assessment of risks associated with investments are discussed, as well as portfolio management strategies to minimize potential losses and maximize income. Ultimately, the article is intended to help readers better understand the key aspects of investment decision-making and make informed investment decisions taking into account current economic and financial conditions. Making an investment decision is a complex process that requires careful analysis of many factors. The main factors influencing the investment decision can be divided into several categories. The first and perhaps the most important factor is the economic component. Economic indicators such as GDP growth, inflation, unemployment, interest rates, etc. have a direct impact on investment decisions. For example, high inflation can reduce the real value of investments, while stable GDP growth can create a favorable environment for investment. Financial factors also play an important role. This includes evaluating the financial performance of a company or project, such as return on investment, debt level, profitability, etc. Investors usually tend to choose investments with high return potential and low financial risks.
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Geetha, N., and M. Ramesh. "A study on relevance of demographic factors in investment decisions." Perspectives of Innovations, Economics and Business 10, no. 1 (2012): 14–27. https://doi.org/10.15208/pieb.2012.02.
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This study attempts to find out the significance of demographic factors of population such as gender, age, education, occupation, income, savings and family size over several elements of investment decisions like priorities based on characteristics of investments, period of investment, reach of information source, frequency of investment and analytical abilities. The study was made by conducting a survey in Nagapattinam district of Tamilnadu, South India and the statistical inferences were deduced using computer software tools. The study reveals that the demographic factors have a significant influence over some of the investment decision elements and insignificant in others elements too. The study also discloses a general view of investors perception over various investment avenues.
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Surendra Purusottama Rangga, Y Anni Aryani, Doddy Setiawan, Ibrahim Fatwa Wijaya, and Setiyawan Gunardi. "Better behavioral control in sharia investment decision: a literature review." Journal of Islamic Accounting and Finance Research 7, no. 1 (2025): 39–58. https://doi.org/10.21580/jiafr.2025.7.1.25252.
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Purpose - This study aims to identify factors that influence investment decisions. Furthermore, the researcher wants to show how sharia-compliant investment decisions act more rationally than conventional investment decisions. Method - This study employs the "charting the field" method by categorizing articles based on research themes and utilizing the VOSviewer application to analyze variable occurrences. The researchers used databases from Scopus.com and sinta.kemendikbud.go.id, covering publications from 2017 to 2024. Result - Investment decisions in the non-sharia sector are often influenced by excessive overconfidence and behavioral biases, which may lead to losses for investors. In contrast, sharia-compliant investment decisions tend to rely on more certain factors, emphasizing rationality based on financial literacy, behavioral control, and religiosity. Implication - This study highlights that investment decisions are primarily influenced by factors such as high confidence levels, uncertainty, herding bias, behavioral bias, and heuristic bias. Meanwhile, investors in the sharia sector tend to be more cautious and have better behavioral control, making the decision-making factors in sharia-compliant investments more applicable in practice. Originality - This study is relatively rare in both global and Indonesian contexts, providing insights into how sharia-compliant investments can serve as a viable option for investment decision-making.
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Kekytė, Ieva, and Viktorija Stasytytė. "Comparative Analysis of Investment Decision Models." Mokslas - Lietuvos ateitis 9, no. 2 (2017): 197–208. http://dx.doi.org/10.3846/mla.2017.1023.
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Rapid development of financial markets resulted new challenges for both investors and investment issues. This increased demand for innovative, modern investment and portfolio management decisions adequate for market conditions. Financial market receives special attention, creating new models, includes financial risk management and investment decision support systems.Researchers recognize the need to deal with financial problems using models consistent with the reality and based on sophisticated quantitative analysis technique. Thus, role mathematical modeling in finance becomes important. This article deals with various investments decision-making models, which include forecasting, optimization, stochatic processes, artificial intelligence, etc., and become useful tools for investment decisions.
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Tazbieva, Aset A., and Bilal M. Betirsultanov. "RESEARCH ON INVESTMENT PROJECT DECISION-MAKING." EKONOMIKA I UPRAVLENIE: PROBLEMY, RESHENIYA 8/6, no. 149 (2024): 122–27. http://dx.doi.org/10.36871/ek.up.p.r.2024.08.06.012.
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In the context of the rapid development of the Internet information age, enterprises in all spheres of life are constantly faced with new opportunities and challenges. During the period of rapid economic development, advanced technologies have opened up more and more different investment channels for enterprises, making investments play an increasingly important role in the development of enterprises. The so—called investment decision-making is a process of choice and decision-making based on certain investment behavior. By making investment decisions, the plan formulated by the company can achieve the best effect. This article describes in detail the need and importance of conducting research on decision-making on investment projects. Based on some of the problems that arise in modern conditions, appropriate solutions are proposed, hoping to play a positive role in making corporate investment decisions.
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Daniyal, Dasrul, and Martinus Tukiran. "THE ROLE OF FINANCIAL MANAGEMENT IN LONG-TERM INVESTMENT DECISION MAKING (LITERATURE REVIEW)." International Journal of Multidisciplinary Research and Literature 3, no. 6 (2024): 791–801. https://doi.org/10.53067/ijomral.v3i6.276.
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This study aims to examine the role of financial management in long-term investment decision-making through a literature review of various related studies. The main focus of this study is the impact of risk, the application of the time value of money, investment diversification, agency problems, and investment project feasibility evaluation techniques such as Net Present Value (NPV) and Internal Rate of Return (IRR). The literature review findings demonstrate that high risk influences investment decisions owing to the unpredictability of future cash flows, necessitating risk mitigation strategies like portfolio diversification and the utilization of derivative instruments. Applying the concept of the time value of money (TVM) is crucial in investment evaluation to facilitate more rational and profitable decisions, considering inflation and discount rates. Diversification of investments has demonstrated efficacy in mitigating volatility and enhancing long-term investment outcomes. Agency problems, which arise from conflicts of interest between owners and managers, also affect the quality of investment decisions, which can be overcome by designing incentives that align with the company's long-term goals. Evaluating the feasibility of investment projects using NPV and IRR helps ensure that the investments can add significant value to the company. This research provides important insights into how good financial management can support more effective and sustainable investment decision-making
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Ahmad Zaidi, Atikah Zulaikha, and Nor Suziwana Hj Tahir. "Factors That Influence Investment Decision Making Among Potential Individual Investors in Malaysia." ADVANCES IN BUSINESS RESEARCH INTERNATIONAL JOURNAL 5, no. 1 (2019): 9. http://dx.doi.org/10.24191/abrij.v5i1.9969.
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Individual investments behaviour is concerned with choices about purchases of small amounts of securities for his or her own account. Decision tools often support investment decisions. It is assumed that information structure and the factors in the market systematically influence individuals’ investment decisions as well as market outcomes. Decision tools often support investment decisions. It is assumed that information structure and the factors in the market systematically influence individuals’ investment decisions as well as market outcomes. Investor market behaviour derives from psychological principles of decision making to explain why people buy or sell stocks. These factors will focus upon how investors interpret and act on information to make investment decisions. The purpose of the study was to identify the factors that influence investment decision making among potential individual investors in Malaysia. Three behavioural factors might influence investment decision making which are accounting-information, firm-image coincidence and personal-financial-needs. A set of questionnaire was distributed to 384 potential investors in Malaysia specifically in housing area of Klang Valley as population of this study. Based on the findings, it showed that there is positive relationship between accounting-information, firm-image-coincidence and personal-financial-needs in investment decision making. Hence, between these three behavioural factors, accounting-information, firm-image coincidence and personal-financial-needs, the main influential factor is accounting-information. This study also proposed a future research for investment decision making and give implications to the potential investors, community, organization, policy makers and investment practitioners.
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Chandra, Hanry, Yanthi Hutagaol-Martowidjojo, and Angelina Widjaja. "Sustainable investment perception influence in investment decision." E3S Web of Conferences 571 (2024): 03004. http://dx.doi.org/10.1051/e3sconf/202457103004.
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Indonesian investors are aware of the significance of Environmental, Social, and Governance (ESG) concept in influencing the enduring success of organizations. This leads to the importance of studying investment decisions that consider ESG factors in investment decisions. This study investigates the dynamic relationship between demographic parameters, considered as control variables, and their potential contribution to the influence of the perception of sustainable investment and risk tolerance on ESG-considered investment decisions. This study employs a quantitative method by conducting a survey to retail investors in Indonesia. The findings indicate that these control variables do not have any influence. Significantly, perceptions of sustainable investment have been proven to influence ESG-considered investment decisions. Conversely, risk tolerance does not affect investment decisions considering environmental, social, and governance (ESG) factors. This study highlights the significance of customized investment strategies to cater to the varying preference of investors while also underlining the necessity of conducting more research on including ESG disclosures. Overall, it provides valuable insights into the intricate correlation between demographic characteristics and ESG investments in the IDX, emphasizing the pivotal influence of investors' perspectives on creating sustainable practices.
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K, S. Meenakshisundaram, and V. Ramanathan K. "Factors Influencing the Decision Making of Salaried Women Employees in Banking Sector." International Journal of Management and Humanities (IJMH) 4, no. 6 (2020): 9–14. https://doi.org/10.35940/ijmh.E0512.024620.
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Decisions towards investment are based on investor’s mind set rather than rational decision making. The main objective of this research study is to identify the factors that influence the investment decisions of the women employees working in banks. The data for the study were obtained from 250 women investors employed in various banks in Chennai through survey method using a well-structured questionnaire and with. Statistical tools such as factor analysis and garrett’s ranking method were used to identify the factors influencing the investment decision of the respondents. Factors like Investor’s Self-confidence, Investment Prudence and Investment Planning & Annoying Planning were identified for the investment decision of respondents. Further, Friends / Colleagues and Family members were found to be the motivational factors for influencing the decision making process by the investors.
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Cruz, Julio, and Ariel Singerman. "Understanding Investment Analysis for Farm Management." EDIS 2019, no. 4 (2019): 4. http://dx.doi.org/10.32473/edis-fe1060-2019.
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Investment decisions are among the most important decisions growers make. In many cases, those investments are in capital assets such as establishing a new orchard or purchasing a new piece of equipment. The process for evaluating those investments is called investment analysis or capital budgeting. This 4-page fact sheet written by Julio Cruz and Ariel Singerman and published by the UF/IFAS Food and Resource Economics Department reviews net present value and the internal rate of return, the two main criteria for decision making when evaluating a decision to invest in a capital asset. https://edis.ifas.ufl.edu/fe1060
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Trinarningsih, W., R. M. Damayanti, and M. Rosdaliva. "Key drivers shaping green investment decisions." IOP Conference Series: Earth and Environmental Science 1438, no. 1 (2025): 012064. https://doi.org/10.1088/1755-1315/1438/1/012064.
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Abstract Environmental awareness is explored to understand how this drives the demand for greener investments among both institutional and individual investors. Making green investment decisions involves a comprehensive evaluation of the environmental, social, and governance factors associated with a potential investment. In Indonesia, women are involved in financial decision-making within the household, such as savings, investment, and debt repayment. Our research aims to identity and analyse the determinants of green investment decisions that drive investors. We are using a framework that examines the role of behavioural factors and demographic characteristics in understanding the determinants of green investment behavioural. We determine behavioural factors such as overconfidence and herd behaviours. Meanwhile, we use age, education level, and investment experience as demographic factors. Data was collected from 120 respondents of civil servants’ wives in Klaten Central Java Province in Indonesia. For data analysis, we employ partial least square (PLS) using the SmartPLS software application. Through quantitative assessment, our study finds that overconfidence, age, and education level enhance green investment decision, while investment experience diminish green investment decision. Furthermore, we cannot find any evidence that herding behaviour and income have an impact on green investment decision.
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Su, Zuqi. "Research on the Influence of Green Financial Investment Decision Factors Under the Background of Environment, Society, And Governance." Frontiers in Business, Economics and Management 7, no. 3 (2023): 137–41. http://dx.doi.org/10.54097/fbem.v7i3.5452.
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At this stage, with the continuous development of China's socialist market economy, green financial investment has come into being. Investment and financing operation behavior has become an important economic behavior of enterprises in addition to production and operation activities and is also a key factor in enhancing market competitiveness. The investment decision is the core content of enterprise financial management, and scientific and reasonable green financial investment decisions can provide financing opportunities for more enterprises. This paper analyzes the factors affecting green financial investment decisions in the context of environment, society, and governance. Companies wanting to maximize profits from green financial investments need to choose a promising portfolio approach. This paper makes several recommendations to address the green financial investment decision, aiming to promote the sustainable and healthy development of the investment industry.
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Chaudhary, Manoj Kumar. "Impact of Risk Perception, Overconfidence Bias and Loss Aversion on Investment Decision-Making." American Journal of Financial Technology and Innovation 3, no. 1 (2025): 14–22. https://doi.org/10.54536/ajfti.v3i1.4061.
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This study investigates how overconfidence, loss aversion, and perceptions of risk affect investment decisions in the Nepal Stock Exchange. Making investment decisions is a complicated process that is influenced by several psychological elements. Using structured questionnaires, data was collected from individuals actively involved in stock trading. Employing a quantitative approach, the research utilizes a descriptive research design and conducts multiple regression analyses. Findings reveal that risk perception significantly impacts investment decisions, with individuals perceiving higher risks displaying a greater propensity to invest in high-risk assets. Additionally, overconfidence bias positively influences investment decisions, indicating that individuals with higher confidence levels tend to favour riskier investments. Loss aversion bias plays a significant role, as individuals averse to losses prefer investments that minimize potential losses. These results underscore the substantial impact of behavioural biases on investment decision-making, with overconfidence bias exhibiting the most significant influence, followed by risk perception and loss aversion bias. The findings emphasize the importance of psychological biases in understanding investment behaviour. Investors, financial advisors, and policymakers can all benefit from understanding how risk perception, overconfidence, and loss aversion affect investment decisions. Investors can improve portfolio performance, lessen the chance of financial crises, and make more informed decisions by identifying and correcting these biases. Therefore, to encourage more effective and efficient investment decision-making processes, it is critical to increase awareness of these biases and develop measures to mitigate their negative consequences. Conducting more studies to examine these biases’ additional dimensions and how they affect investment decisions is advisable.
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Kiruba DR, Angelin S., Bharathi R. DR, and Madhumithaa N. DR. "Cryptocurrency Investing: Millennial Decision Making." Indonesian Capital Market Review 15 (July 1, 2023): 86–96. http://dx.doi.org/10.21002/icmr.v15i2.1164.
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Investor perceptions of various investment modes can differ based on factors such as experience, earnings, risk tolerance, liquidity preferences, and so on. Understanding the viewpoints of young investors is essential when assessing cryptocurrency investments. This study evaluates the investment decisions of 103 young investors in the cryptocurrency market, using regression and factor analysis for data analysis. The findings indicate that investors have a fundamental understanding of the risks associated with cryptocurrency investments. However, there is a notable need for enhancing the effective management of these risks. The study affirms the reliability of the measures used, accurately capturing the underlying factors pertinent to cryptocurrency investment
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Schanz, Sebastian, and Deborah Schanz. "The Income Tax Paradox." Intertax 38, Issue 3 (2010): 167–69. http://dx.doi.org/10.54648/taxi2010018.
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In non-neutral tax systems, levying taxes may have a paradoxical effect on investments: An investment’s value increases due to taxation. The so-called income tax paradox occurs when an investment’s after-tax net present value exceeds the net present value before taxes. In this article, we explain reasons for this paradoxal effect and demonstrate the income tax paradox using numerical examples. We show that occurrence of the tax paradox depends on taxation of interest income in the country where the investment project is carried out. Depending on the tax system, investments that are profitable (unprofitable) on a pre-tax basis can be unprofitable (profitable) due to taxes. Thus, an optimal investment decision can only be made by taking taxes into account.
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Nagaeva, Elena A. "MAKING AN INVESTMENT DECISION (USING THE EXAMPLE OF MECHANICAL ENGINEERING ORGANIZATIONS)." EKONOMIKA I UPRAVLENIE: PROBLEMY, RESHENIYA 10/3, no. 151 (2024): 138–42. http://dx.doi.org/10.36871/ek.up.p.r.2024.10.03.015.
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An investment decision involves a decision on the expediency of investing investment funds with future income for investment investments that can be characterized by the expected profitability of own funds. The article considers a mechanism for making an investment decision based on the curve of dependence of the expected profitability of own funds and the investor’s risk.
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Stoilov, Todor, Krasimira Stoilova, and Miroslav Vladimirov. "Decision Making in Real Estate: Portfolio Approach." Cybernetics and Information Technologies 21, no. 4 (2021): 28–44. http://dx.doi.org/10.2478/cait-2021-0041.
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Abstract An investment policy is suggested about assets on real estate markets. Such analysis recommends investments in non-financial assets and optimization of the results from such decisions. The formalization of the investment policy is based on the portfolio theory for asset allocation. Two main criteria are applied for the decision making: return and risk. The decision support is based on Mean-Variance portfolio model. A dynamical and adaptive investment policy is derived for active portfolio management. Sliding procedure in time with definition and solution of a set of portfolio problems is applied. The decision defines the relative value of the investment to which real estates are to be allocated. The regional real estate markets of six Bulgarian towns, which identify the regions with potential for investments, are compared. The added value of the paper results in development of algorithm for a quantitative analysis of real estate markets, based on portfolio theory.
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Junivar, Mutiara Syahada, Moch Doddy Ariefianto, and Irwan Trinugroho. "Financial distress, value of firm, trilemma index dan investment decision studi pada perusahaan pertambangan global besar." Fair Value: Jurnal Ilmiah Akuntansi dan Keuangan 4, no. 10 (2022): 4697–703. http://dx.doi.org/10.32670/fairvalue.v4i10.1742.
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The purpose of this study was to determine the relationship between financial distress, value of firm and investment decision in the world's largest mining companies. Investment decision in a company is very important in developing the company, it can be by doing business expansion or other things. This research uses quantitative methods. The independent variables in this study are financial distress, firm value and trilemma index. the financial distress coefficient is negative -0.04 significant with a p-value of 0.021 for investment decisions. Financial distress has a negative influence on investment decisions in large mining companies around the world in 2010-2019, which means that in the world's large mining companies, companies that have a financial downturn in their companies tend to make investment decisions with the aim of restoring the company's financial condition. The point is, financial distress here can also occur not because after the company makes an investment decision, the company will experience a financial downturn, this can happen one of them because by making an investment decision it can make the company's finances seem to be reduced but financial conditions can be reduced. by the company in making investments.
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Zahro, Mar’atus, Rika Rahayu, Triyonowati Triyonowati, Suhermin Suhermin, and Okto Aditya Suryawirawan. "Navigating Financial Behavior." MARGINAL JOURNAL OF MANAGEMENT ACCOUNTING GENERAL FINANCE AND INTERNATIONAL ECONOMIC ISSUES 4, no. 1 (2025): 164–78. https://doi.org/10.55047/marginal.v4i1.1583.
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In Indonesia, numerous young retail investors exhibit a lack of adequate financial knowledge and comprehension of investment fundamentals, potentially resulting in suboptimal investment choices and heightened financial exposure. This research seeks to examine how financial literacy, herding, risk perception, and attitude toward investment can enhance the decision-making process for students in investments, enabling them to make more educated and self-assured selections in financial markets. The study employed non-probability purposive sampling, involving 84 Generation Z participants. Data analysis was conducted using Partial Least Square (PLS) via SmartPLS. The findings reveal that financial literacy positively and significantly influences investment decision-making. Conversely, herding does not have a substantial impact on investment choices. Risk perception demonstrates a significant negative effect on investment decision-making, whilst attitude towards investment shows a significant positive influence. The study also found that attitude towards investment does not mediate the relationship between financial literacy and investment decision-making, nor does it mediate the impact of risk perception on investment decisions. However, it does mediate the influence of herding on investment decision-making. These outcomes contribute to a more comprehensive understanding of how each antecedent variable affects the decision-making processes of Generation Z students, offering valuable insights for educators, policymakers, and financial institutions aiming to improve investment education and support for young investors.
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Mrs. Yashasvi Panwar, Dr. Vidya Telang, and Dr. Vidya Telang. "A study on the Impact of Financial Literacy on Financial Investment Decisions among women: A review of selected literature." Journal of Global Economy 19, no. 4 (2024): 297–304. http://dx.doi.org/10.1956/jge.v19i4.696.
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Introduction: Investment constitutes an important decision for effective personal financial planning. A good Investment provides a base for a sound financial situation in near future. The recent time period has seen a revolutionary growth in the situation of women. This growth has become more important for the women living in India because India is a developing country. Recently, Indian women have faced tremendous growth in their position across different parts of the country. Women take various important decisions in their life and for their family including financial decisions. It can be savings, Expenditure, investment, decision about loans and advances, retirement planning. Purpose: This study focuses on the awareness of Financial Investments in Women. The purpose of this paper is to study the financial literacy in women about Financial Investment by using literature based analysis.
 Data collection: Secondary data is collected from various sources such as journals, research papers, websites and articles.
 Findings: The study of various papers reveals that majority of women do not prefer equity as investment. Majority of the women prefer investments which carry less risk such as Fixed Deposits, Post Office Investments and so on. Government can form new policies and schemes to attract more investments which are underrated.
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Siska, Atmaningrum, Sunu Kanto Dwi, and Kisman Zainul. "Investment Decisions: The Results of Knowledge, Income, and Self-Control." Journal of Economics and Business 4, no. 1 (2021): 100–112. https://doi.org/10.31014/aior.1992.04.01.324.
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Investment is an economic activity that can be a way for a person to expand or maintain his wealth. However, in investing, the public must be more careful in making decisions so that they are not trapped by fake investments. In investing, there are several factors that influence the decision to invest, namely Financial Knowledge, Income, Self-Control, Financial Behavior, and Financial Attitude towards Investment Decisions. This study aims to examine the influence of the variables of Financial Knowledge, Income, and Self-Control on Investing Decisions mediated by Financial Behavior and Financial Attitudes. This study uses Financial Knowledge, Income, and Self-Control as independent variables, then Investment Decisions as the dependent variable, then Financial Behavior, and Financial Attitudes as intervening variables. The results of this study indicate that financial knowledge has an effect on financial behavior. Financial Knowledge affects Financial Attitudes. Financial knowledge influences investment decisions. Income has an effect on Financial Behavior. Income has an effect on Financial Attitudes. Income does not affect the Investment Decision. Self-control affects financial behavior. Self-Control affects Financial Attitudes. Self-Control has no effect on Investment Decisions. Financial Behavior has no effect on Investment Decisions. Financial Attitudes do not affect the Investment Decision.
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Wirawan, Rosadi, Titik Mildawati, and Bambang Suryono. "DETERMINAN PENGAMBILAN KEPUTUSAN INVESTASI BERDASARKAN NORMA SUBJEKTIF, KONTROL PERILAKU, DAN PERILAKU HEURISTIK." EKUITAS (Jurnal Ekonomi dan Keuangan) 6, no. 1 (2022): 43–57. http://dx.doi.org/10.24034/j25485024.y2022.v6.i1.5163.
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This study aims to obtain empirical evidence of the influence of Subjective Norms, Behavioral Control, and Heuristic Behavior on Investment Decisions. We used 54 respondents of individual investors who are just learning and or have already transacted on the Indonesia Stock Exchange (BEI) as a sample. By using multiple regression analysis, we found that the subjective norm has an effect on investment decisions. This means that the higher the influence of individual external environmental pressures, namely observers, friends, mass media, and investment management, the greater the individual's ability to make investment decisions. Behavioral Control has an effect on Investment Decisions. This means an understanding of the simplicity or complexity of taking action based on past experience and the obstacles that may be faced when taking action, affecting individuals in making investments. Heuristic behavior affects investment decision making. This means that the level of confidence and experience possessed by individuals and other known people will influence individuals in making accurate investments.
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Erkan, AKGÖZ, and TEMİZEL Gazme. "Making Investment Type Decision Based on Multiple Criteria: Example of Sille." Journal of Recreation and Tourism Research 9, no. 2 (2022): 82–98. https://doi.org/10.5281/zenodo.6782323.
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The starting point of this study is the decision-making process regarding business investments that will meet the needs of domestic and foreign visitors in Sille, which is an important cultural and historical destination 8 km away from the city of Konya. The aim of the study is to draw attention to the necessity of evaluating according to multiple criteria and using objective methods while making decisions regarding new business investments to be made in Sille. In the study the AHP method, which allows the objective evaluation of different criteria, was preferred in order to increase the efficiency and sustainability of the investments to be made in Sille. In order to decide on the most suitable tourism business investment to be made in Sille, the necessary criteria and investment alternatives were determined as a result of interviews with academicians, investors interested in the region and business managers already operating in Sille. As a result of the research, it has been determined that the most effective criterion in determining the most appropriate investment type to be made in Sille is the <em>investment cost </em>and the most accurate investment decision is the <em>enterprises selling souvenirs</em>.
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Nur Hidayah. "The Impact of Financial Literacy on Overconvidence and Investment Decision." Jurnal Akuntan Publik 1, no. 2 (2023): 232–43. https://doi.org/10.59581/jap-widyakarya.v1i2.499.
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Overconfidence and Investment Decision are very important instruments for individuals, especially investors in the capital market. Overconfidence is the first step if an individual wants to invest, because every investment instrument carries risks. If they have a confident attitude, they will dare to take risks. Investment decisions are very important in investment instruments. Individuals must be able to analyze portfolios by properly weighing risk and return. Overtrust and investment decisions must be determined by financial literacy, because if financial literacy is low, investors can become entangled in illegal investments. The purpose of this study is to empirically prove the effect of financial literacy on overconfidence and investment decisions. The sampling technique in this study used purposive sampling. Test the quality of the data used, namely test the validity and reliability test, test the model and test the hypothesis using multiple linear regression analysis. The results showed that the financial literacy variable had a positive and significant effect on overconfidence and investment decisions
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Alkaraan, Fadi. "Strategic investment decision-making – scanning and screening investment opportunities." Meditari Accountancy Research 24, no. 4 (2016): 505–26. http://dx.doi.org/10.1108/medar-01-2016-0007.
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Purpose This study brings together cognitive and organizational aspects of the strategic investment decision-making process. It focuses on the early stages of strategic investment decision-making. This paper aims to augment the limitations of previous survey-based research through an archival case study that describes pre-decision screening in detail. Design/methodology/approach This paper draws on archival data covering an investment decision undertaken by a large brewing company. The data cover a period of about six years, focusing on the decision to invest in West Africa. A rational/intuitive orientation model of the process is used as a framework to help analyze the archival evidence. Findings Strategic investment decisions are non-programmed, complex and uncertain. For some companies (e.g. those with a strategic focus on new expansions), certain non-programmed decisions may become semi-programmed in the course of time by applying knowledge learned from having successfully handled non-programmed decision situations in the past. However, other companies without such a focus may not be able to programme part of their strategic decisions. Pre-decision control mechanisms constitute a form of strategic control by detecting potential problem areas in the investment option before formal approval. Research limitations/implications Given the narrow scope of this paper – a single case study – the findings are used for theorization rather than offering generalizable results. There is a need for unified models to enrich our understanding of the influence that contextual factors have on strategic investment decision-making. Effective strategic pre-decision control mechanisms that maintain a good balance between rational and intuitive approaches are matters that remain open for debate in future research. Practical implications Research on organizational and cognitive aspects of the strategic investment decision-making process is inherently practical. To achieve successful strategic investment decisions, it is essential to devote more attention to the choice and design of strategic control mechanisms. Originality/value The framework of this study can help practitioners to gauge the strengths and weaknesses of their decision-making practices. It focuses on three aspects that are relatively absent in the literature: the strategic problem, the strategic choice and the chronological relations between the five stages of the strategic investment decision-making process. The use of historical data is suited to providing illustrations of intuitive/heuristic-based practices that would otherwise be hard to capture.
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Walakumbura, S. H. M. L. "The Effect of Financial Literacy on Personal Investment Decisions amongst Medical Practitioners in Sri Lanka." European Journal of Business and Management Research 6, no. 4 (2021): 123–26. http://dx.doi.org/10.24018/ejbmr.2021.6.4.952.
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Financial literacy is very essential for any individual in order to efficient and effective decisions regarding their personal investments. Based on that scenario, this study examines the impact of financial literacy on personal investment decisions amongst medical practitioners in Sri Lanka. Personal investment decision has been considered as the dependent variable while financial knowledge, financial skills and financial attitude has been considered as the proxies for the independent variable. Deductive approach has been employed using primary data which is obtained from 205 respondents throughout the country. Descriptive and inferential statistics such as multiple linear regression have been used for the analysis purpose. The results suggested that there is a significant impact between the financial knowledge and financial skills on investment decision while the financial attitude does not have a significant impact on the investment decision. The empirical findings of this study are helpful for any individual who is willing to take effective investment decisions, academics, policy makers and all other related interested parties.
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Rasmussen, Josefine. "The Role of Structural Context in Making Business Sense of Investments for Sustainability–A Case Study." Sustainability 12, no. 17 (2020): 7006. http://dx.doi.org/10.3390/su12177006.
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Energy efficiency is an important means for sustainable manufacturing. One action for manufacturing companies to improve energy efficiency is through investments. While these investments often are profitable, opportunities remain unexploited. This paper explores the structural context of the investment decision-making process by examining the associated activities, procedures, and the role of information. While the structural context may limit complex investments that do not fit predefined rules and controls, such as energy efficiency and other sustainability-related investments, it remains a scarcely studied aspect of investment decision-making for energy efficiency investments. Method-wise, the paper is based on a case study of a major investment at a pulp and paper company, motivated and justified based on productivity, strategic, energy, and sustainability rationales. The paper contributes with illustrating how configurations of internal investment activities and procedures may be crucial for sustainability-related investments to pass through the investment process. Moreover, the configuration of activities and procedures is also indicated as influential for the way in which an investment is executed. Hence, for energy efficiency and other sustainability-related investments to make business sense constitutes more than achieving desirable payback periods; the structural context should be considered.
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Bagas Firmansyah, Mohammad Fajar Saputra, Hanif Dwi Hastungkara, and Maria Yovita R. Pandin. "The Influence of Investment Profitability and Investment Risk on Individual Investment Decisions." Finance : International Journal of Management Finance 1, no. 2 (2023): 86–92. http://dx.doi.org/10.62017/finance.v1i2.28.
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Investment is one way to gain profits and increase wealth, research on understanding investment risks to individual investments is very important to understand. Research on Understanding Investment Risk in Individual Investments aims to determine the extent to which individuals understand investment risk, as well as how investment risk influences individual investment decisions. The results obtained show that understanding investment risks has a very positive influence on individual investment decisions in order to get the desired results.
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Max, Raphael, and Matthias Uhl. "Moral luck in investment contexts: We consciously find unprofitable investments less moral." PLOS ONE 18, no. 1 (2023): e0278677. http://dx.doi.org/10.1371/journal.pone.0278677.
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Moral luck refers to whether an actor is morally praised or blamed for an action whose outcome they could not influence. In two studies, we investigated the behavioral importance of this phenomenon in the realm of investments, which has become increasingly subject to ethical evaluations. In our first online experiment, we examined whether people’s moral evaluation of an investment decision depended on its arbitrary outcome and whether their interpretation of the nature of the decision was driven by this outcome. Our results showed that profitable investments were considered more moral than unprofitable investments. Moreover, profitable investments were labeled “investments” instead of “speculation” or “gambling” more often than unprofitable ones. In our second study, we asked the subjects to assess investments independent of the outcome. After the outcome was announced, the subjects were given the opportunity to reflect and change their initial decision. The results show that people change the moral evaluation and label of investments when told that it had a bad outcome. This observation was stable across different investment contexts. These findings suggest that we must be careful with the increasing moralization of investment decisions and be sensitive to our cognitive biases.
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Aggarwal, Divya, and Varun Elembilassery. "Sustainable Finance in Emerging Markets: A Venture Capital Investment Decision Dilemma." South Asian Journal of Business and Management Cases 7, no. 2 (2018): 131–43. http://dx.doi.org/10.1177/2277977918774651.
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This case is crafted to highlight the dilemma faced by two senior executives of Softbank Asia Infrastructure Fund (SAIF) Partners. It showcases their approach towards an impact investment and an analysis of the same, keeping in perspective the uncertainty in an impact investment resulting due to Indian government regulatory provisions. Lack of standardized tools in measuring impact investment returns hinders the commercial funds to assess the true implications of an impact investment. Sustainable finance is directed towards benefiting both client and society by integrating environmental, social and governance (ESG) criteria, either in a business practice or in an investment decision. Investing in an MSME lending enterprise has elements of impact investment in it and is best catered by sustainable funds and not commercial funds. Impact investment, sustainable funds and microfinance are some of the typical activities falling under sustainable finance. SAIF Partners is evaluating an opportunity to invest in an Indian MSME lending enterprise. The key concern is, can commercial funds like SAIF Partners see matching return opportunities in an impact investment? This case provokes the target audience to examine the nature of social impact investments and the nuances in aligning the same with the objectives of commercial investments.
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Prajapati, Nabin, and Jyoti Swongamikha. "Factors Influencing Mutual Fund Investment Decisions: Insights from Women Investors." Bagiswori Journal 3, no. 01 (2024): 22–41. http://dx.doi.org/10.3126/bagisworij.v3i01.62013.
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With the economic transformations and wider access to financial knowledge, the capital market is witnessing a surge in female investors. Among the various investment options available in the market, mutual funds are one of the major options that are known to provide greater returns compared to the traditional investments. This study has been carried out with the objectives of studying mutual fund investment decisions from the perspective of women investors in Nepal. It identifies different factors that affect the investment decision of women investors in Nepal. Basically, this study adopts descriptive research design to describe and measure the data whereas causal comparative research design is used to analyze the impact of specific factors on mutual fund investment decisions of women investors. Meanwhile the study showed that different factors such as financial and accounting information, investors’ consultation with advisors and the image of mutual fund issuing companies have a positive significant influence in the investment decision of women in Nepal. Unlikely the study showed insignificant effect of investment knowledge of investors and general economic condition on the investment decision of women investors. This study can lay the groundwork for effective educational programs and policy changes that enables women investors to make financial decisions and promote equitable practices in the financial investment sector.
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James, Arun, and Seranmadevi R. "Unpacking the Psychology of Investment Intention: The Role of Emotional Intelligence, Personality Traits, and Risk Behaviour." International Research Journal of Multidisciplinary Scope 05, no. 01 (2024): 198–206. http://dx.doi.org/10.47857/irjms.2024.v05i01.0189.
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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.
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Mehta, Pooja V. "Investment Decision Using Behavioural Finance." Paripex - Indian Journal Of Research 2, no. 2 (2012): 146–47. http://dx.doi.org/10.15373/22501991/feb2013/50.
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Daniel Nyaulingo, Silverio, and Ganka Daniel Nyamsogoro. "The effects of owner-managers' behavioural patterns on investment decisions among small-scale recycling firms in Tanzania." International Journal of Development and Management Review 19, no. 1 (2024): 72–89. http://dx.doi.org/10.4314/ijdmr.v19i1.5.
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Owner-managers make decisions on behalf of their firms. This study used cross-sectional data toinvestigate how owner-manager's behavioural factors influence investment decisions in terms of choice of recycling investments, share of recycling investment in the portfolio, and level of diversification in the waste recycling sector. Three analytical techniques were employed to analyse the data: the multivariate probit model to explore the effects of owner-manager's behavioural factors on the choice of specific waste recycling investments, multiple linear regression analysis to determine their influence on waste recycling investment share, and an ordered logistic regression model to study their effects on levels of diversification within the recycling investment portfolio. The results indicate that investors’ attitudes and subjective norms significantly affect both their choice of specific waste recycling investments and the level of diversification within the recycling investment portfolio, while perceived behavioural control significantly affects the decision on waste recycling investment share. The research did not find evidence that attitude and subjective norms affect investment share nor that perceived behavioural control affects investment choice and the level of diversification. These findings highlight the importance of considering owner-manager's behavioural factors in promoting sustainable and effective investment strategies in the waste recycling sector. Policymakers should develop programs to enhance positive attitudes toward waste recycling investments. Additionally, training programs for owner-managers should focus on increasing perceived behavioural control by improving access to resources and skills. Furthermore, social influence campaigns could be leveraged to strengthen the subjective norms supporting waste recycling investments.
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Simanjuntak, Rahmad, Sonya Putri, and Iskandar Muda. "The influence of technical and fundamental analysis on investment decision making for traders with theory of reasoned action." Brazilian Journal of Development 9, no. 12 (2023): 31972–86. http://dx.doi.org/10.34117/bjdv9n12-095.
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Financial behavior is intended to understand the behavior of investors in making investment decisions. Decision-making is a process to select the best alternative from available possible alternatives in a complex situation. Decision-making in investments is influenced by knowledge of fundamental analysis, technical analysis, and investor psychology in the capital market. This study aims to determine the behavior of investors in decision-making in investments in the capital market. There were eight informants interviewed in this study from various backgrounds, including brokers, university students, private employees, and investment managers. The result of this study showed the behavior of investors in decision-making in investments in . In making a decision, investors paid less attention to intrinsic value of stocks when stocks are in an uptrend condition and were overconfident in making decisions. Meanwhile, stock investor decisions were quite influenced by fundamental conditions, macroeconomics, and technical stock price fluctuation, so the behavior of individual stock investors in decision-making in tends to be rational.
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Davar, Yesh Pal, and Suveera Gill. "Investment Decision Making: An Empirical Study of Perceptual View of Investors." Metamorphosis: A Journal of Management Research 6, no. 2 (2007): 115–35. http://dx.doi.org/10.1177/0972622520070204.
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There has been substantial theoretical as well as applied evidence about the explanatory facets of investor's perception and investment decision making (IDM). The study reported here investigates the underlying dimensions in the selection of different investment avenues for investors. Examination of a sample of 500 investor respondents reveals the extent to which the significant IDM variables account for variations in present and future investment in various investment avenues. The results suggest that investors' preferences are supposedly related to the actual performance of investments and the same is taken into account while forming an opinion about making future investment decision. Further, demographic factors like age and education have a significant influence on IDM process. The underlying dimension in selection of investments reveals emphasis on familiarity, opinion and demographic measures for all investment avenues. The analysis in the paper reiterates the fact that rational human beings learn from their past and present experiences and utilize the same for their future activities.
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R, Mardiana, Yossinomita Yossinomita, M. Haris Saputra, Mandasari R, and Yulia D. Kartika. "BEHAVIORAL BIAS (AVAILABILITY, REPRESENTATIVENESS, ANCHORING, AND CONFIRMATION) TOWARD INVESTMENT DECISION-MAKING." Journal of Management : Small and Medium Enterprises (SMEs) 18, no. 1 (2025): 399–412. https://doi.org/10.35508/jom.v18i1.17769.
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When making investment decisions, retail investors tend to rely on shortcuts in thinking to process the information and data they get. This creates illogical thinking based on emotions or momentary judgments that can result in less-than-optimal investment performance and even losses. This research investigates the relationship between behavioral financial biases (like availability, representativeness, anchoring, and confirmation) and investment decision-making. This study method uses purposive sampling with certain characteristics. Data was collected from 130 retail investors for 3 months in 2024 and analyzed with SPSS Statistics. The research results show that confirmation bias and representativeness bias positively affect investment decision-making. However, anchoring bias and availability bias do not significantly affect investment decision-making. In addition, confirmation bias, representativeness bias, anchoring bias, and availability bias simultaneously positively affect investment decision-making. Financial behavioral biases that can influence investors are confirmation bias and representativeness bias, where retail investors tend to look for information according to their views and similarities based on certain stereotypes, which can reduce or cause losses in stock investments. Keywords: Anchoring Bias; Availability Bias; Confirmation Bias; Representativeness Bias; Investment Decision-Making
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Bonna, Adu, and Robert Awobgo-Moah Amoah. "Influence of Culture on Investment Decisions: A Cross-Sectional Study of Ghanaian Population." Journal of Economics and Behavioral Studies 11, no. 6(J) (2020): 38–51. http://dx.doi.org/10.22610/jebs.v11i6(j).2955.
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Abstract: This study seeks to explore the influence of culture on the investment decisions of Ghanaians. It is motivated by the perception that Ghanaians show no enthusiasm for long-term investments or life insurance products. To explore this problem, we used a random sampling, quantitative cross-sectional technique to administer a set of questionnaires to a cross-section of 120 Ghanaians residing in the City of Columbus, Ohio, U.S.A. Hofstede’s five cultural dimensions were used as the theoretical framework to guide the study. The results showed that Ghanaians prefer short-duration risk-free investments to long-duration risky investments. Ghanaian investors are not aggressive in gathering and analyzing financial information before making investment decisions. Their investment decisions are influenced by others, intuition, comfort and security, and their belief systems, rather than rational analysis of information, and risk-reward relationships derived from financial models. The use of intuition and information passed on from relatives, family members and others in making investment decisions paves the way for cultural factors to influence investment decisions. We conclude that cultural values have significant influence on the investment decisions of Ghanaians. The study seeks to motivate investors to examine and broaden their cultural awareness to enable them to develop financial plans to achieve their investment goals. We recommend that to overcome negative cultural influence on investment decision making, financial education should be vigorously pursued to broaden financial literacy.
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Nino Bendianishvili, Nino Bendianishvili. "Modern Information Technologies in the Field of Foreign Investment, „IT Investments"." Economics 105, no. 1-2 (2022): 52–58. http://dx.doi.org/10.36962/ecs105/1-2/2022-52.
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The information technology market is one of the main catalysts for economic development. Investment in information technology is especially important. Information technology is an investment product, for this reason, they have to compete with other areas of enterprise activities with limited investment resources. It should be noted that the concept of "investing in IT" is new and very broad. All IT investments are divided into four categories: 1. Infrastructure; 2. Transaction; 3. Informative; 4. Strategic. Infrastructure - means investments in local area network, communications, equipment. Transactions - Investments in systems that facilitate day-to-day operations: order processing, printing of technology cards, payment documents, etc. Informative - Investments in analysis and decision support activities. Strategic - Investments in new areas of IT. Keywords: Investment Product, Investment in IT, Foreign Investment Market, Information Technology Market.
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Bratiloveanu, Florin Ionut, Ionut Marius Croitoru, Cosmin Alexandru Spiridon, Paula Paraschiva Spiridon, Luciana Dragomir, and Romanita Jumanca. "Investment Decision Criteria – Bibliometric Analysis." Economic Insights – Trends and Challenges 2023, no. 4 (2023): 91–106. http://dx.doi.org/10.51865/eitc.2023.04.08.
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The present study wants to analyze how the criteria underlying the decision to make an investment in the existing articles in the Web of Science are highlighted through bibliometric analysis. The query resulted in the display of 441 scientific articles. A specific filter applied to our selection was the choice of Citation Topics Meso: Economics, Management, Economic Theory to ensure that the analyzed articles are from the economic field. To determine the correlations regarding the countries of origin of the authors, we used the Co-authorship filter of VOSviewer, having a minimum number of 12 documents/country and a minimum number of 10 citations/country, so out of 71 countries only 16 met the conditions. A first analysis of the phrases used in the 441 articles was carried out with the help of the word cloud, from Wordart, regarding the words contained in the title of the article, the author's keywords, plus keywords and summaries. The second analysis was that of the phrase density, it was carried out through the VOSviewer software by applying the cooccurrence filter, for all keywords, with an appearance of at least 9 times, resulting in 4 clusters with a total of 53 items that define the process of taking decisions, analyze the investor's behavior and the structure that makes the investment, define the sources of investment financing and investment performance evaluation modalities and analyze the risk and uncertainty environment specific to investments. The results of our research can be a starting point for other analyses in the decision-making field of investments by providing keywords to start from.
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Ustinovichius, Leonas. "DETERMINATION OF EFFICIENCY OF INVESTMENTS IN CONSTRUCTION." International Journal of Strategic Property Management 8, no. 1 (2004): 25–43. http://dx.doi.org/10.3846/1648715x.2004.9637505.
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Decision making is associated with ranking problems aimed to obtain a set of preference order of solutions. People can make mistakes choosing the best object for investments. Due to high cost of such mistakes, such a choice should be well founded. A major goal of paper is to develop a theoretical basis for creating a decision support system aimed to increase building construction and reconstruction investment efficiency by applying multiattribute decision making approaches and mathematical modelling. To achieve the goal, the following problems have to be solved: to analyse new models currently used in developing investment strategies in building construction and reconstruction, to make a classification of construction investment projects and to describe the stages of determining the efficiency of construction investments, to create a family of multiattribute decision methods to be used in the analysis of investment projects in building construction and reconstruction, to create multiple attribute decision support system based on the multiattribute methods developed for determining the efficiency of construction and reconstruction investment projects.
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Susanti, Eka Nana, and Muhamad Alimudin. "Keputusan Berinvestasi Secara Digital di Siswa Sekolah Menengah." Jurnal EMT KITA 9, no. 1 (2025): 316–23. https://doi.org/10.35870/emt.v9i1.3459.
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Investment is an activity that can be undertaken by anyone. Recently, numerous investment models have emerged in the digital world. The variety of investment models requires individuals to be cautious in selecting the right investment. For students, understanding financial literacy is crucial to avoid making poor investment decisions. This study aims to identify students' knowledge about investments and determine the influence of financial literacy on investment decision-making. The research employs a quantitative method with 91 respondents. Data analysis includes validity tests, reliability tests, simple linear regression, t-tests, and F-tests. The results of the study indicate that the partial test (t-test) yielded a t-value of 3.350, exceeding the t-table value of 1.985, with a significance level of 0.000 (3.350 > 1.985 and 0.000 < 0.05), suggesting that H0 is rejected and H1 is accepted. This indicates that financial literacy significantly influences investment decision-making. The simultaneous F-test shows that financial literacy has a positive simultaneous influence on investment decision-making, as indicated by an F-value of 13.476, exceeding the F-table value of 3.84, with a significance level of 0.000 (13.476 > 3.84 and 0.000 < 0.05). It can be concluded that financial literacy simultaneously influences investment decision-making.
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Paarakh, Purvi. "The Impact of Personality Traitson Investment Decision Making : An Empirical Study." International Scientific Journal of Engineering and Management 04, no. 06 (2025): 1–9. https://doi.org/10.55041/isjem04190.
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ABSRACT Financial planning is essential for managing rising living costs and achieving desired living standards. Investments play a crucial role in individuals’ financial well-being. Individuals base their investment decisions on factors such as personal suitability, risk tolerance, and expected returns; however, these decisions are not always entirely rational. Given the dynamic nature of individual investors, it is necessary to consider psychological influences on financial decision-making. This dissertation examines how consumer sociodemographic characteristics influence variations in the Big Five personality traits (neuroticism, extraversion, agreeableness, conscientiousness, and openness to experience). It further investigates how these personality traits affect investment behavior and explores the impact of financial literacy on investment decisions, with a particular focus on the mediating role of personality traits in this relationship. By addressing these dimensions, the study aims to deepen the understanding of behavioral factors in investment decision-making. Keywords: Investment Decision-Making, Financial Literacy, Personality Traits, Big Five Model, Behavioral Finance, Risk Tolerance, Sociodemographic Factors, Investor Psychology, Conscientiousness, Neuroticism, Extraversion, Agreeableness, Openness to Experience, Mediating Role, Financial Planning
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Maya Nur Lestari. "Kajian Literatur: Faktor Yang Berpengaruh Terhadap Keputusan Investasi Mahasiswa." Jurnal Ekonomi Bisnis dan Akuntansi 3, no. 3 (2023): 226–35. http://dx.doi.org/10.55606/jebaku.v3i3.2889.
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The increasing investment activities in Indonesia have encouraged most students to start their involvement in the world of investment. Students make investments with the aim of gaining profits in the present and future. Of course, students need to make investment decisions carefully and pay attention to the factors that influence investment decisions. The purpose of this paper is to identify the factors that influence students' decision making in investing. This research uses the literature review method. In this literature review process, the author analyzes a number of journal articles that discuss the factors that influence students' investment decisions. Relevant journal articles were selected after searching for research sources through Google Scholar. The reference sources used are accredited national journals. From the results of the literature review analysis of several related journal articles, it can be concluded that student investment decisions are influenced by several factors. Factors that support students in making investment decisions are financial literacy, demographic factors, risk tolerance, risk perception, investment knowledge, overconfidence, and herding.
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Potryvaieva, Natalia, Inha Pelypkanych, and Oleksandra Potryvaieva. "Effective Investment Decision for Fixed Assets Management." Modern Economics 23, no. 1 (2020): 174–79. http://dx.doi.org/10.31521/modecon.v23(2020)-28.
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Introduction. Constant changes in economic and political situation create more stringent conditions for the survival of modern businesses while requiring effective management of the enterprise’s life cycle and also investing in a simple and expanded reproduction of fixed assets. An enterprise like any socio-economic organism needs constant development, growth and renewal, only these conditions ensure its competitiveness. Theoretical and methodological aspects of selection and evaluation of the investment decisions’ efficiency are constantly the focus of scientific world attention. However, it should be noted, the issues of choosing the most rational ways and stages of making an effective investment decision to manage the reproduction of fixed assets of the enterprise are not thoroughly studied, thus, they need further efforts to develop new proposals to improve their quality and prevent possible risks. Purpose. The purpose of the article is to study the factors and stages of making the appropriate investment decision to reproduce fixed assets with efficient use of resources. Results. The aspects of effective investment decision making for reproduction of fixed assets management are researched. It is proved that the attraction of sources of financing investment decisions is influenced by objective and subjective factors. The stages of making an investment decision in order to select the optimal sources of financing of the investment project are substantiated. It is found that the decision on the reproduction of the enterprise’s fixed assets should be comprehensive and aimed at both tangible and intangible components. Conclusions. Use of managerial approach in the process of reproduction of fixed assets investment lets making effective investment decision, which is implemented through some stages with appropriate methodological support. Taking into account the objective and subjective factors influencing the efficiency of the investment decision will help to avoid difficulties in managing the reproduction of fixed assets in the long run. The choice of financing source for an investment project is the most important management decision. The decision to reproduce the fixed assets of the enterprise should be comprehensive and aimed at both tangible and intangible components. The managerial decision may be considered as effective if it is directed to achieve the resource efficiency, obtained as a result of development and implementation of the investment decisions, where financial and material investments, qualified personnel, etc. can act as resources. This requires making and implementation of such decisions by qualified managers provided that the sequence of the stages would be followed, including collection of information, decision-making and ensuring effective implementation of the investment decision. Keywords: fixed assets; investment; reproduction; efficiency; management.
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Chuah, Lay Lian, Wai Ching Poon, and Balachandher Krishnan Guru. "Uncertainty and Private Investment Decision in Malaysia." Modern Applied Science 12, no. 9 (2018): 71. http://dx.doi.org/10.5539/mas.v12n9p71.
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This study examines the effects of uncertainty on irreversible aggregate investment using data from 1971-2010. Results provide evidence to support the argument that macroeconomic uncertainties are important in the forward-looking investment decision-making process. This study concludes that the demand and lagged demand uncertainties have a relatively stronger effect on investments compared with other macro uncertainties. The structure of the economy, the depth of the financial system, and the promotion of trade openness reduce the negative impact of uncertainties on investment. The study also finds the elasticity of the user cost of capital to be less than unity, indicating limited scope for governments to influence investment through tax incentives.
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PARTHASARATHY, V. R. PERRY. "Managing uncertainty: A case for using real options with option pricing model (OPM) to evaluate capital investment." TAPPI Journal 12, no. 7 (2013): 69–77. http://dx.doi.org/10.32964/tj12.7.69.
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The pulp and paper industry relies heavily on the traditional discounted cash flow-based net present value (DCF-NPV) for making capital investment decisions. The deficiency of the DCF-NPV model is that it is static; once a pattern of cash flow is established, management does not have the option to change the direction when new information is available. However, flexibility to alter the investment decision is a powerful strategic and capital investment tool. Abundant research has established strong precedence for applications of “real options” in operational and strategic settings to provide useful insights in the evaluation of irreversible investments under uncertainty. The binomial or Black-Scholes option pricing model (OPM) for strategic planning and capital investment has been used in many other industries but not in the pulp and paper industry. The pulp and paper industry, though very capital intensive, has provided poor to moderate return on investment or return on capital and has never used the OPM and the flexibility it offers for capital investment decisions. This paper makes a case for using OPM for capital investment decisions by using the example of a hypothetical North American mill considering investments to modernize its papermaking operation.
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Chandra Bhooshan Singh, Nistha Sharma, and Mariyam Ahmed. "Psychological Determinants of Investment Decisions: Analyzing Financial Behavior in Personal Investments." Involvement International Journal of Business 1, no. 4 (2024): 258–68. http://dx.doi.org/10.62569/iijb.v1i4.46.
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Understanding the psychological factors that influence investor behavior is critical in the dynamic world of financial markets. Financial conduct encompasses the decisions and behaviors individuals exhibit in managing their finances, including investments in various asset classes. Factors such as risk tolerance, cognitive biases, emotional influences, and financial knowledge significantly shape investment outcomes. Gaining long-term financial success requires mastery over these behavioral aspects. This study investigates the influence of three psychological factors—information asymmetry, problem framing, and risk propensity—on the investment decisions of 220 active investors trading on the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE). A quantitative research approach was employed, utilizing a structured questionnaire to collect data. Statistical analyses, including regression and correlation analysis, were used to assess the relationships between these psychological variables and investment behaviors. The results reveal significant correlations between psychological factors and investment decisions. Information asymmetry, problem framing, and risk propensity were found to strongly influence individual investor choices. These findings shed light on the intricate role that cognitive biases and psychological processes play in shaping financial decision-making. The study's findings offer valuable insights into the psychological drivers behind investment behavior. By highlighting the impact of these factors, the research contributes to both academic understanding and practical applications for financial professionals. The results underscore the importance of enhancing financial literacy and investor education, enabling more informed decision-making and promoting improved financial outcomes.