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Virlics, Agnes. "Emotions, Mood and Decision Making." International Journal of Applied Behavioral Economics 3, no. 2 (April 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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Kekytė, Ieva, and Viktorija Stasytytė. "Comparative Analysis of Investment Decision Models." Mokslas - Lietuvos ateitis 9, no. 2 (June 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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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 (June 30, 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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Mehta, Pooja V. "Investment Decision Using Behavioural Finance." Paripex - Indian Journal Of Research 2, no. 2 (January 15, 2012): 146–47. http://dx.doi.org/10.15373/22501991/feb2013/50.
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Cruz, Julio, and Ariel Singerman. "Understanding Investment Analysis for Farm Management." EDIS 2019, no. 4 (August 1, 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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Alkaraan, Fadi. "Strategic investment decision-making – scanning and screening investment opportunities." Meditari Accountancy Research 24, no. 4 (October 3, 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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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 (December 26, 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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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 (May 25, 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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Stoilov, Todor, Krasimira Stoilova, and Miroslav Vladimirov. "Decision Making in Real Estate: Portfolio Approach." Cybernetics and Information Technologies 21, no. 4 (December 1, 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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Putri, Silvia, and Halmawati Halmawati. "Pengaruh Financial Literacy, Representativeness Bias, Dan Bias Optimisme Terhadap Pengambilan Keputusan Investasi." JURNAL EKSPLORASI AKUNTANSI 2, no. 3 (November 5, 2020): 2976–91. http://dx.doi.org/10.24036/jea.v2i3.263.
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This study aims to analyze 1) whether there is an influence of financial literacy on investment decision maknig. 2) Obtain empirical evidence whether there is an Representativeness bias making on investment decisions. 3) Does Bias optimisme affect investment decision making. In this study using Causality Design. Population and sampek are 104 respondents registered in the Indonesia Stock Exchange Investment Gallery (GIBEI) Faculty of Economics, State University of Padang. The method of analysis is multiple linear regression. The results of the study found 1) Financial literacy influences investment decisions on investment decision making.2) Optimum bias affects investment decisions on investment decision making. 3) Representativness influences investment decisions on investment decision making. 4) Together financial literacy variables, the optimum bias and representativness together influence the investment decision on investment decision making
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Potryvaieva, Natalia, Inha Pelypkanych, and Oleksandra Potryvaieva. "Effective Investment Decision for Fixed Assets Management." Modern Economics 23, no. 1 (October 27, 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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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 (February 26, 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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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 (July 15, 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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Moody, Joanna, Timothy Patton Doyle, Scott Middleton, and Joseph Sussman. "The CLIOSjre Process: A Flexible Multicriteria, Multistakeholder Decision Framework for Transportation Planning under Uncertainty." Transportation Research Record: Journal of the Transportation Research Board 2672, no. 44 (June 20, 2018): 82–92. http://dx.doi.org/10.1177/0361198118778930.
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Transportation investments determine the long-term success or failure of a transportation provider. It is therefore vital for decision makers to have an in-depth understanding of the alternatives available before they choose to invest. However, often, the process of evaluating alternatives is lengthy, costly, and contentious, particularly for transportation infrastructure investment decisions that are large, complex, and interconnected with other economic development and sustainability goals. Furthermore, transportation investments involve many decision makers, each with different priorities and expertise. Therefore, there is a need for transparent, accurate, flexible, and practicable decision-making aids that can handle the complex challenges facing the decision-making bodies of transportation providers and planning organizations. This paper introduces a new decision aid—the CLIOSjre Process—that combines insights from multicriteria decision analysis, multistakeholder negotiation theory, and uncertainty analysis. The CLIOSjre Process helps decision makers compare multiple alternatives across multiple objectives and seek an informed collective transportation investment decision. Unlike other multicriteria decision aids, the CLIOSjre Process accounts for differences of opinion among decision makers and is designed to facilitate constructive negotiation among them. Finally, the CLIOSjre Process formally accounts for sources of uncertainty inherent in these decisions. In this way, the CLIOSjre Process provides a unique and flexible framework for investment analysis that can adapt to changes in transportation alternatives, decision-maker priorities, and emerging real-world conditions. The usefulness of this new decision aid is illustrated for the East Japan Railway Company’s consideration of a transportation investment opportunity in high-speed rail development on the Northeast Corridor of the United States.
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Crowson, Phillip. "Investment decision methodology." Minerals & Energy - Raw Materials Report 6, no. 3 (January 1988): 106–8. http://dx.doi.org/10.1080/14041048809409911.
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Sugiarto, Sugiarto, Dedy Surahman, and Ma’ruf Sya’ban. "INVESTMENT DECISION FACTORS." SUSTAINABLE 3, no. 2 (January 5, 2024): 301–12. http://dx.doi.org/10.30651/stb.v3i2.20953.
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The purpose of this study was to determine the effect of financial literacy and personal income on investment decisions. Data collection was carried out by survey using a questionnaire given to 75 respondents. The results of this study indicate that Financial Literacy partially has no significant effect on Financial Behaviour, Financial Literacy partially has a significant effect on Investing Decisions, Personal Income partially has no significant effect on Financial Behaviour, Personal Income partially has a significant effect on Investing Decisions, Financial Behaviour partially has no significant effect on Investing Decisions.
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Prajapati, Nabin, and Jyoti Swongamikha. "Factors Influencing Mutual Fund Investment Decisions: Insights from Women Investors." Bagiswori Journal 3, no. 01 (January 19, 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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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 (December 30, 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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Martino, Gaetano, Daniela Toccaceli, and Miroslava Bavorova. "An analysis of food safety private investments drivers in the Italian meat sector." Agricultural Economics (Zemědělská ekonomika) 65, No. 1 (January 28, 2019): 21–30. http://dx.doi.org/10.17221/352/2017-agricecon.
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Food safety systems that implement Hazard Analysis and Critical Control Points (HACCP), certification, traceability, brands as well as in geographical indications and private branding require dedicated investments in physical resources, human resources and in re-organising the production processes and control activities. Investment decisions can be made according to legal requirements or based on voluntary decisions. In this study, we address the two following research questions: do the inducements due to the regulatory framework influence the decision to invest in the implementation of food safety strategies and what is the size of this potential influence? Does the allocation of the decision right to invest influence the investment decision and does this potential influence vary across food safety systems? We carried out an empirical investigation on investment decisions in the Italian meat sector, comparing systems dedicated to safety and marketing strategies. The knowledge of such an influence provides a better understanding of the micro-level motivations of food safety investments in a critical area and contribute to the design of regulatory strategies.
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Piyadhida Sungkhamanee, Krisada Sungkhamanee,. "Environment and Potential Affecting Investment Decision for Accommodation Business: Case of Less Visited Area in Samut Songkhram and Phatthalung Province." Psychology and Education Journal 58, no. 2 (February 1, 2021): 1706–17. http://dx.doi.org/10.17762/pae.v58i2.2326.
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Investment decisions have great importance in different sectors of various countries and these decisions are the basis on which the outcomes of the investments are based. However, there might be certain factors that might lead to the incorrect long term and short term investment decisions. In this regard, the current study has been conducted with the core motive to explore the impact casted by the environment and potential factors i.e. salience and overconfidence on the long term investment decisions for accommodation business along with the moderation of a variable i.e. financial literacy. To fulfill this objective, the researcher has collected data from the investors of accommodation businesses in Thailand. The collected data has been subjected to different statistical techniques and tools for analysis purpose and the results have been obtained. The results obtained by the analysis of the collected data indicate that salience and overconfidence have significant impact on the long term investment decision. In addition, the moderating role of financial literacy has also been found as significant in the study. The results suggest that the investors of the accommodation business must consider the aspects of salience and overconfidence before taking any long term investment decision to avoid failure of the investment decision.
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Siagian, Edward Robinson. "Penentuan Nilai Saham Terbaik Dalam Sistem Pendukung Keputusan Dengan Menggunakan Metode Simple Additive Weighting (SAW)." Bulletin of Information Technology (BIT) 4, no. 4 (December 24, 2023): 508–14. http://dx.doi.org/10.47065/bit.v4i4.1069.
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In the current era of information technology, aspects of life have become dependent on the era of globalization, especially for business people. To support the economy, investment is an important step that must be taken. Generally, basic principles are needed to decide on investment steps in the form of shares in order to obtain maximum profits. The value of investing in the capital market requires sufficient information, experience, and business sense to analyze which investments to buy, which to sell, and which to keep. The value of shares is difficult for investors to predict with potential shares, so investors need to carry out investment trend analysis and for companies to first determine their investment policy model so that they make investment decisions in accordance with what is most expected with the level of risk tolerance limits. Analysis of investment information is useful for determining the value of the shares to be selected and to find out the expected rate of return to determine the investment strategy that will be carried out.
Making decision support using several criteria that will be part of the strategy in determining potential shares. A decision support system is a decision that can help, speed up and simplify the decision making process.
Fuzzy Multi-Attribute Decision Making (FMADM) with the Simple Additive Weighting (SAW) method is a method that can assist in making decisions regarding several alternative decisions that must be taken with several criteria that will be taken into consideration.
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Musembi, Mwaka Samuel, Dr Samuel O. Onyuma, and Dr James N. Kung’u. "Investor Characteristics and Their Effect on Investment Decisions among Public University Workers in Kenya." Journal of Economics and Public Finance 8, no. 2 (May 28, 2022): p179. http://dx.doi.org/10.22158/jepf.v8n2p179.
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Investment decision has become part of individuals’ lives in the in recent days. People invest in insurance policies, fixed deposits, shares, equities, real estate, mutual funds, and government securities among others. Universities are the peak of knowledge hence the community expects that workers in such institutions be in the frontline in making informed investment decisions. Although the university staff work in the same environment, it has not yet been established how their different investor characteristics affect their investment decisions. There is scanty information on the moderating effect of mobile borrowing on the relationship between investors’ risk attitude, demographic profile, and socio-economic status on investment decisions. This study investigated the effect of the investor characteristics on investment decision. The objectives of the study were to; assess the effect of investor risk attitude on investment decision among public university workers in Kenya, test the effect of the investor demographic profile on investment decisions among public university workers in Kenya, and determine the effect of socio-economic status on investment decision among public university workers in Kenya. Finally, the study examined the moderating effect of mobile borrowing on the effect of investor risk attitude and socio-economic status on investment decision among public university workers in Kenya. Capital Asset Pricing Model, Efficient Markets Hypothesis, Prospect Theory and Behavioural Finance Theory guided the study. The study adopted a descriptive survey research design with a target population of 2075 workers from the sampled Public Universities in Kenya. Stratified random sampling technique was employed from which a sample of 336 was used. Further, the study used primary data sources through a structured questionnaire. The questionnaires were administered using google forms. Data was analysed with the aid of SPSS version 26 software and Microsoft excel. Charts, tables, graphs, and figures were used to present the results. The results of the study indicated that risk attitude played the biggest role in investment decision-making since it explained 41.7 percent of investment decision. In addition, all the demographic factors influenced the choice of investment. The results also showed that investors in the age of 31-40 were willing to diversify their investments unlike the other age groups. Mobile borrowing was found to moderate the relationship between investment decision and its predictors. The study recommends that a similar study is conducted once the government operationalises the mobile lending control. Since workers between 31-40 years were found to have a much higher affinity for risk and investment, the government should consider targeting civil servants and other professionals in this age group by providing them with investment incentives.
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Amudha, Dr R., and R. Naveena Chander. "An Impact of Behavioral Bias on Investment Decision Making of Individual Investors." International Journal of Innovative Research in Engineering and Management 11, no. 2 (April 2024): 62–65. http://dx.doi.org/10.55524/ijirem.2024.11.2.12.
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Behavioral finance has gained increasing prominence in understanding the role of psychological factors in shaping investment decisions. This study aims to investigate the impact of various behavioral biases on the investment decision-making process of individual investors. Specifically, it examines the prevalence and influence of biases such as confirmation bias, loss aversion, herding behavior, overconfidence, and regret aversion among individual investors. The study employs a quantitative approach, collecting data through a structured questionnaire from a sample of 201 individual investors. Descriptive statistics, correlation analyses, chi-square tests, and reliability measures are utilized to analyze the data and assess the relationships between behavioral biases, demographic factors, investment characteristics, and investment decisions. The findings reveal that behavioral biases are prevalent among the respondents, with varying degrees of influence on their investment decisions. Significant associations are observed between certain biases and factors such as annual income, percentage of investment from savings, frequency of investments, and investment types. For instance, individuals with higher incomes exhibit slightly more loss aversion tendencies, while those investing a higher percentage of their savings tend to demonstrate greater confirmation bias. The study contributes to the understanding of behavioral finance by providing empirical evidence on the impact of various biases on individual investors' decision-making processes. It highlights the importance of recognizing and mitigating these biases to promote more informed and rational investment decisions. The findings have implications for individual investors, financial advisors, and policymakers in developing strategies to enhance investment decision-making and overall financial well-being.
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Rehman, Muzzamil, Dr Babli Dhiman, and Gagandeep Singh Cheema. "Minds and Machines: Impact of Emotional Intelligence on Investment Decisions with Mediating the Role of Artificial Intelligence." International Journal of Engineering, Business and Management 8, no. 1 (2024): 01–10. http://dx.doi.org/10.22161/ijebm.8.1.1.
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In the evolving landscape of financial decision-making, this study delves into the intricate relationships among Emotional Intelligence (EI), Artificial Intelligence (AI), and Investment Decisions (ID). By scrutinizing the direct influence of human emotional intelligence on investment choices and elucidating the mediating role of AI in this process, our research seeks to unravel the complex interplay between minds and machines. Through empirical analysis, we reveal that EI not only directly impacts ID but also exerts its influence indirectly through AI-mediated pathways. The findings underscore the pivotal role of emotional awareness in investor decision-making, augmented by the technological capabilities of AI. It suggests that most investors are influenced by the identified emotional intelligence when making investment decisions. Furthermore, AI substantially impacts investors' decision-making process when it comes to investing; nevertheless, AI partially mediates the relationship between emotional intelligence and investment decisions. This nuanced understanding provides valuable insights for financial practitioners, policymakers, and researchers, emphasizing the need for holistic strategies that integrate emotional and technological dimensions in navigating the intricacies of modern investment landscapes. As the synergy between human intuition and artificial intelligence becomes increasingly integral to financial decision-making, this study contributes to the ongoing discourse on the symbiotic relationship between minds and machines in investments.0
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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 (January 6, 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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Ma, Li-Ching. "Visualizing Investment Decision on Decision Balls." American Journal of Operations Research 01, no. 02 (2011): 57–64. http://dx.doi.org/10.4236/ajor.2011.12009.
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Kang, Xin, Xiangjun Xu, and Fei Yuan. "Investment Decision of New Energy Vehicle Enterprises Using the Interval Basic Probability Assignment-Based Intuitionistic Fuzzy Set." Mathematical Problems in Engineering 2021 (May 26, 2021): 1–19. http://dx.doi.org/10.1155/2021/5585461.
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To evaluate the investment decisions of new energy vehicle enterprises scientifically and reasonably and improve the investment efficiency and accuracy of decision-makers, this paper proposes an investment decision method based on interval intuitionistic fuzzy sets. In the investment decision-making process of new energy vehicle enterprises, first, based on the characteristics of new energy vehicle enterprise investment projects, an index system is constructed to comprehensively cover the influencing factors of investment decisions. Second, we obtain the interval fuzzy number of the decision index through a questionnaire survey, use the structural entropy method to empower decision indicators, and comprehensively evaluate the decision index by the organic combination of the interval-valued intuitionistic fuzzy weighted averaging (IIFWA) operator and structural entropy method. Finally, interval BPA is used to express the value of each decision index interval intuitionistic fuzzy number. Based on the conversion relationship between interval evidence and the intuitionistic fuzzy set, the orthogonal sum operation results of the intuitionistic fuzzy set converted from the normalized interval BPA is replaced by the interval evidence combination result, and the final decision is determined by comparing the fusion result. Applying the investment decision method based on interval intuitionistic fuzzy sets to the field of new energy vehicle investment decision-making can provide a reference for investment decision-makers to make efficient and accurate decisions, and it has application value and practical significance to promote the effective development of new energy investment decisions.
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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 (January 17, 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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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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Nurhayati, Yati, Mohd Zamre Mohd Zahir, Ifrani Ifrani, and Parman Komarudin. "Investment in Indonesia After Constitutional Court’s Decision in the Review of Job Creation Law." Lentera Hukum 9, no. 3 (December 30, 2022): 435. http://dx.doi.org/10.19184/ejlh.v9i3.32368.
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In 2021, the Indonesian Constitutional Court decided conditionally unconstitutional in the review of the Job Creation Law. It was among a few decisions made by the Constitutional Court to accept a formal review, even if some dissenting opinions followed it. While the decision has largely influenced a wide array of regulatory laws because the Job Creation Law adopts the omnibus law model, the pivotal issue in this paper rests on the legal basis for investment in Indonesia after this decision. Firstly, it enquired whether the Constitutional Court exceeded its power for a procedural judicial review against the Job Creation Law. Second, it discussed the legal basis for investment in Indonesia after the Constitutional Court's Decision No. 91/PUU-XVIII/2020. Using normative research, the results showed that with the conditional unconstitutional decision, the Indonesian investment world would experience legal uncertainty for the next two years, especially new businesses, licensing, and investments with the enactment of the Job Creation Law. In particular, if the legislative branch failed to improve this law over two years, businesses, licensing, and investments in Indonesia might have no legal basis, resulting in the uncertain situation of the government’s desire to realize the friendly investment.
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Lane, Daniel E. "Investment Decision Making by Fishermen." Canadian Journal of Fisheries and Aquatic Sciences 45, no. 5 (May 1, 1988): 782–96. http://dx.doi.org/10.1139/f88-096.
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Individual fishermen make investment decisions in an environment which is competitive and highly variable from season to season. Extensive variability means that economic survival must be a primary consideration in the investment decision process. In this paper, fishermen's investment decisions are modelled as a probabilistic dynamic programming problem in discrete time. Fishermen are assumed to make rational decisions based on income expectations and subject to survivability conditions to maximize the net worth of the fishing enterprise at the end of a finite planning horizon. The formal analysis of the investment model is presented and the model is applied to trailer fishermen of the British Columbia commercial fishing fleet. The results present an accurate picture of actual investment decisions and provide valuable insights into the behavioral basis of investment decision making by fishermen. Understanding the investment decisions of fishermen has implications for planning and regulation in fisheries: insights gained into the key factors provide the basis for the development of strategic long-term policies that anticipate fishermen's behavior. The consequences will be a movement away from reactive, short-term policies which have characterized fisheries regulation to date.
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Rose, Jacob M., Anna M. Rose, and Carolyn Strand Norman. "The Evaluation of Risky Information Technology Investment Decisions." Journal of Information Systems 18, no. 1 (March 1, 2004): 53–66. http://dx.doi.org/10.2308/jis.2004.18.1.53.
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This research proposes that the risk preferences of decision evaluators and the decision “domain” systematically influence evaluations of decision makers' information technology (IT) investment decisions. Results of an experiment with 160 M.B.A. student participants indicate that risk-seeking evaluators rate IT investment decisions higher than do risk-averse evaluators. Further, decision evaluators are influenced by the gain and loss decision domains when evaluating a decision maker's risky information technology investment decisions. The findings indicate that providing decision domain information to decision evaluators leads to systematic differences in IT investment evaluations. A key contribution of this study is the discovery of the relevance of prospect theory to IT evaluation processes.
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Greer, Charles R., and Gregory K. Stephens. "Escalation of commitment: a comparison of differences between Mexican and U.S. decision-makers." Journal of Management 27, no. 1 (February 2001): 51–78. http://dx.doi.org/10.1177/014920630102700104.
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Differences in tendencies toward escalation of commitment are examined in a comparative study of Mexican and US decision-makers. Results show that Mexican subjects were significantly more inclined toward escalation. Mexican subjects also reported significantly greater confidence in their escalatory decisions, and subjects from both countries escalated their commitment when bad news about the investment came from subordinates. Furthermore, Mexican subjects made relatively smaller additional investments when they were personally responsible for the initial investment decision.
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Abdul kareem, Ahmed Amer, Zaki T. Fayed, Sherine Rady, Salsabil Amin El-Regaily, and Bashar M. Nema. "Factors Influencing Investment Decisions in Financial Investment Companies." Systems 11, no. 3 (March 10, 2023): 146. http://dx.doi.org/10.3390/systems11030146.
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For making the most favorable financial decisions possible, it is essential to have an understanding of aspects and the factors which can play a role in the decision-making. In contrast to previous research on the subject, which has only examined a single factor in making investment decisions, our study takes a more holistic approach by looking at several factors. The purpose of this study was to discover the elements that influence investment decisions made by financial organizations that are listed on Iraqi stock exchanges (ISX). The research was carried out on the six companies that made up the study’s sample size. For the purpose of data collection, the researcher utilized a structured questionnaire that was delivered to the respondents in an individual capacity. The questionnaire contained eight items. The factors of the questionnaire were analyzed with respect to normal distribution, the problem of linear multiplicity, the validity of the questionnaire in terms of content and appearance, the stability of the questionnaire by the split-half method, and the test and re-test method. In addition, the research hypotheses were tested on both the independent variables and the dependent variables. We calculated the mean, standard deviation, weight percentile, and coefficient of variance from the collected data. The significance of the connection between the dimensions of the decision-making factors was clarified through the use of Spearman’s correlation coefficient and the t test. We concluded that in the last step of the proposed model there is an increase in coefficients of determination and it reaches a value of (0.98), which is a very excellent and almost complete interpretation of the impact of dimensions extracted in the model and their impact on investment decision. As is noted, a slight decline in the value of the regression coefficient for all variables occurred, and also we noticed that the signs for the coefficients for the five variables are positive, meaning that they reflect the extent of the direct effect of those variables in making the investment decision. The response rate for the questionnaire was 97.7%.
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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 (January 30, 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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Upashi, Ranjana. "Study on Behavioural Biases of Investors: The Effect of Prospect Rules." GBS Impact: Journal of Multi Disciplinary Research 8, no. 1 (2022): 35–43. http://dx.doi.org/10.58419/gbs.v8i1.812204.
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Investment decisions of the investors are influenced by different objective and subjective factors. But we as investors ignore or not knowingly our emotions, feelings and sentiments make investment decisions. This disturbs our investment objective and the returns on investments gets effected. Hence, an attempt is made to understand the effect of prospect rules on investors’ investment decisions. The research methodology is descriptive and causal in nature. The sample for the study are the retail investors from Belagavi city. The data to study the effect will be collected through primary source by the questionnaire. The result of regression analysis showed that there was impact of loss aversion and disposition effect on investor’s investment decision. Even the way information is framed the investors get carried away by that, while making the decision of money to be invested. It was also found that less than 10% of the savings are getting invested by the investors. The results would be of use to the financial advisors and investors in knowing the subjective factors affecting their client’s money related decisions.
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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 (August 14, 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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Butt, Mehtab Arshad, Haroon Shafi ., Kashif-Ur-Rehman ., Rana Rashid Rehman ., and Hafiz Muhammad Shoaib . "Investor’s Dilemma: Fundamentals or Biasness in Investment Decision." Journal of Economics and Behavioral Studies 3, no. 2 (August 15, 2011): 122–27. http://dx.doi.org/10.22610/jebs.v3i2.262.
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In the present world Investment decision is most important phenomena. Investment is current sacrifice for future benefits, So while making investment decisions we have to keep different things in mind. Investment decisions are influenced not only by their fundamentals but also depend on different factors. One factor is the biasness of any investor to their investment, biasness depends on the cognition and emotions, because some investors use them as heuristic for the investment decision instead of fundamentals. Keeping this in view, this paper shows how cognitive biasness (i.e. Representativeness, Adjustment and Anchoring, Leniency) effects the investment decisions over the fundamentals. This study also show different types of investors which depicts significant relation of Representativeness, Adjustment and Anchoring, Leniency with investment decisions over fundamentals, and explain under which biasness an investor become more optimistic and moderate for investment decisions. While considering Representativeness biasness over fundamentals investor become more optimistic, In Adjustment and Anchoring biasness investor show moderate behavior about investment decision, and In Leniency biasness investor also take investment decision over optimistically.
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Hsu, Li-Chang. "A HYBRID MULTIPLE CRITERIA DECISION-MAKING MODEL FOR INVESTMENT DECISION MAKING." Journal of Business Economics and Management 15, no. 3 (July 8, 2014): 509–29. http://dx.doi.org/10.3846/16111699.2012.722563.
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Investments are accompanied by risks. How investors choose the right investment tools to assist in the selection of investment targets is a topic worth exploring. Therefore, this study aimed to develop an investment decision-making process to deal with this issue. Firstly, we proposed a globalized modified grey relational analysis to select the representative indicators including the financial indicators and risk measurement indicators. Then we combined financial and risk evaluation indicators, and divided companies into low, moderate and high-risk groups through the grey clustering analysis. Finally, Vlse Kriterijumska Optimizacija Kompromisno Resenje (VIKOR) combined with the grey entropy weighting method was applied to business performance evaluation and sorting of each grouping. In order to verify this study, a combination of 21 financial ratios and four risk indicators was utilized in order to verify the evaluation and decision-making process in the operating performance of 62 listed opto-electronics companies in Taiwan. The results of ranking the operating performance for each group can be made available to company managers as a reference in order to enhance competitiveness and business performance. The results can also be used as the basis for decision-making to aid investors who are facing many investment portfolios.
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Christensen, Peter O., Gerald A. Feltham, and Martin G. H. Wu. "“Cost of Capital” in Residual Income for Performance Evaluation." Accounting Review 77, no. 1 (January 1, 2002): 1–23. http://dx.doi.org/10.2308/accr.2002.77.1.1.
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We consider a setting in which a firm uses residual income to motivate a manager's investment decision. Textbooks often recommend adjusting the residual income capital charge for market risk, but not for firmspecific risk. We demonstrate two basic flaws in this recommendation. First, the capital charge should not be adjusted for market risk. Charging a market risk premium results in “double” counting because a risk-averse manager will personally consider this risk. Second, while investors can avoid firm-specific risk through diversification, a manager cannot. If the manager faces significant firm-specific risk at the time he makes his investment decision, then it is optimal to charge him less than the riskless return so as to partially offset his reluctance to undertake risky investments. On the other hand, the manager will vary his investment decisions with the pre-decision information he receives, which accentuates his compensation risk, and the firm must compensate him for bearing this additional risk. Hence, if the manager will receive relatively precise pre-decision information, then it is optimal to charge him more than the riskless return to reduce the variability of his investment decisions.
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Heikkilä, Tuomo. "A decision support system to evaluate the business impacts of machine-to-machine system." Benchmarking: An International Journal 22, no. 2 (March 2, 2015): 201–21. http://dx.doi.org/10.1108/bij-11-2012-0080.
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Purpose – The tightening competition and performance pressure in companies often leave no time or space for the assessment of business impacts of different investments and projects. In addition, in many cases the assessment may be challenging and there is no experience available to undertake it. Despite that companies often commit to different projects and investments without careful planning and vision of the costs it may cause. The purpose of this paper is to create a decision support system in order to facilitate and increase the assessment of business impacts of different investments concerning to machine-to-machine (M2M) systems. Design/methodology/approach – The created decision support system is composed of cost-benefit analysis including several investment decision methods. In order to deepen the understanding on it, the system was applied to two cases from the M2M business. Findings – During the study it was found that different financial metrics might give contradictory results when deciding whether to undertake an investment. In addition, a significant finding was how much some variables may have significance to the eligibility of an investment than others. The study also gave understanding how long payback time can be and how risky the investments might be in different M2M applications. Originality/value – The study describes the created decision support system and it is applied to two different M2M applications. The system provides a comprehensive combination of different financial metrics, which will help any manager make decisions whether an investment is eligible or not.
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Srinivasan, Kuppusamy, and Parthasarathy Karthikeyan. "Investigating self-efficacy and behavioural bias on investment decisions." E+M Ekonomie a Management 26, no. 4 (2023): 119–33. http://dx.doi.org/10.15240/tul/001/2023-4-008.
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The determinants of irrational decisions on the stock market are found in numerous empirical studies. However, self-efficacy and behavioural biases have a sturdy influence on stock market investment decisions. Behavioural biases are formed with heuristics, prospect theory and herding effect concerning stock market investments. Self-efficacy is independent of behavioural biases but is closely connected with controlling behavioural intentions in decision-making. The research was conducted to find the influence of self-efficacy and behavioural biases in the decision of stock market investment. The study was conducted with 250 individual investors and applied the SEM technique. Findings indicated that heuristics had a positive relationship with behavioural biases, but behavioural biases reported a negative relationship with the herding effect and prospect theory. Heuristics were mostly developed on the intrinsic strength of individual investors; therefore, investors believe heuristics will be a better decision-making tool than prospect theory or the herding effect. Prospect theory is shaped and influenced by regret aversion, loss aversion, self-control and mental accounting. Financial literacy, risk tolerance, and peer support profoundly develop the self-efficacy of investors to make profitable investment decisions. Self-efficacy is formed by risk tolerance, financial literacy and peer support in the stock market investment decision and identified the evidence of individual investors not making rational decisions and facing one or more behavioural biases and self-efficacy factors. The study finds the combined effect of behavioural biases and self-efficacy in stock market investment decisions, which have significant implications among individual investors, particularly in emerging markets.
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Orlova, Kristina Yu. "Formation of innovation and investment development directions of the Samara Region systemic enterprises." Vestnik of Samara University. Economics and Management 12, no. 2 (August 5, 2021): 67–77. http://dx.doi.org/10.18287/2542-0461-2021-12-2-67-77.
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The article discusses the directions of innovation and investment development of the strategic, system-forming, enterprises of the Samara Region, which were determined on the basis of an analysis of information about the real situation (20182020) and the planned future (from 2021), obtained as a result of a questionnaire survey of managers about the directions of investment, criteria for making investment decisions, as well as the strategic goals of investment plans. The analysis of investment directions was carried out, on the basis of which the types of investment activity of enterprises were identified as active, proactive and passive. Criteria for making investment decisions are considered, on the basis of which the types of investment behavior of enterprises were divided into leader behavior associated with the economic justification of investment decisions, and follower behavior characterized by an empirical decision rule. The average values of the investment projects characteristics the payback period of investments, the excess of the rate of return over the loan rate, and the discount rate required for making a decision on investment, as well as the volumes of investment projects in different periods are given. On the basis of the investment objectives considered, three types of strategies of system-forming enterprises are formulated: aggressive, moderate and conservative. Based on the analysis of the results of the survey, the features of innovative activity, as well as the directions and prerequisites for the innovative development of the Samara Region strategic enterprises are determined.
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Rahmawati, Fitriana, and Fitri Santi. "A Literature Review on the Influence of Availability Bias and Overconfidence Bias on Investor Decisions." East Asian Journal of Multidisciplinary Research 2, no. 12 (December 30, 2023): 4961–76. http://dx.doi.org/10.55927/eajmr.v2i12.6896.
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This research examines the impact of Availability Bias and Overconfidence Bias on investment decisions. Utilizing a literature review approach and VOSviewer analysis, this study explores how these biases affect investor decision-making processes and potential mitigation strategies. The objective is to highlight the significance of understanding and mitigating these biases in achieving more rational investment decisions. The findings underscore the potential negative effects of both biases, leading to overconfident and less rational investment decisions. Awareness of their interplay is crucial, as they reinforce each other's negative effects on investment decision-making. Overcoming these cognitive biases is essential for more effective investment decision-making. This research contributes insights into mitigating biases, aiding in a more balanced and rational approach to investment decision-making.
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Alhazami, Lutfi. "Psikologi Investor Dalam Mengambil Keputusan Berinvestasi." Biopsikososial: Jurnal Ilmiah Psikologi Fakultas Psikologi Universitas Mercubuana Jakarta 3, no. 1 (March 10, 2020): 1. http://dx.doi.org/10.22441/biopsikososial.v3i1.8000.
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This Research aims to help investors psychologically in make investment decisions. The purpose is to look at the psychological factors of excessive investor making investment decisions. It is suspected that overconfidence bias has a positive effect on investment decision and optimism bias has a positive effect on investment decision. This is quantitative research, data collection technique from a questionnaire distributed to 150 young investors in West Jakarta. Classic Assumptions, multiple linear regression analysis, hypothesis testing is used in this research. The results show that over confidence bias has a positive effect on investment decision and optimism bias has a positive effect on investment decision.
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Jonathan, Reynard, and Sumani Sumani. "Millennial Investment Decision Analysis." Business and Entrepreneurial Review 21, no. 2 (October 31, 2021): 279–96. http://dx.doi.org/10.25105/ber.v21i2.10409.
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In managing finances, each aims to be able to generate income for himself. Investment is one of the individual decisions to increase the assets owned by allocating a certain amount of funds, time, and assets that are considered to generate returns. Millennial investors are the government's main target through financial literacy education that the Financial Services Authority has promoted in encouraging an increase in stock investment by the public. However, many factors influence investors to invest, including the environment and the investor's personal experience. The purpose of this study is to analyze the factors that influence the investment decisions of millennial private investors, including financial literacy, perceptions of risk and return, financial technology, family background, and income. The data taken for this study is primary data obtained through online questionnaires to people who are currently investing in the age range of 20-40. The number of samples of this study was 224 respondents through data collection using google form for two months. The research data were analyzed using SPSS 26 software. By using descriptive statistical data, validity and reliability tests, classical assumption tests such as autocorrelation, multicollinearity, heteroscedasticity. The results showed that financial literacy, perceptions of risk and return, financial technology, family background, and income influence millennial investor investment decisions. The implication of this result shows that parents should start to provide basic investment knowledge to teenagers as soon as possible, and the firm can invest more in financial technologies to serve young customers.
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Mukherjee, Sulagna, M. Durga Prasad, and Sudeep S. Kumar. "An investment decision dilemma." Emerald Emerging Markets Case Studies 6, no. 1 (May 2, 2016): 1–25. http://dx.doi.org/10.1108/eemcs-05-2014-0131.
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Subject area Financial Accounting and Corporate Finance. Study level/applicability Undergraduate, Post Graduate and Executive Education. Case overview T.A. Pai Management Institute (TAPMI), a leading B School in South India had established its new campus in Badagabettu village, about 5 km away from Manipal, Udupi District, Karnataka. Though the campus housed about a thousand inmates, comprising students, staff and faculty members, a proper public transport system did not develop commensurate with other facilities. The TAPMI administration was flooded with requests from various stakeholders to find a solution to this vexed problem. The Dean Administration had three options before him namely convincing the existing private bus operator to run a new bus en route TAPMI, TAPMI purchases the bus by either paying cash or availing loan from a bank or TAPMI can take a bus on lease. The predicament before Dean was to find out the most economically viable solution. Expected learning outcomes At the end of this case discussion, the participants will be able to: understand the application of breakeven analysis; prepare income statement, balance sheet, cash flow statement and forecast of cash flows; evaluate financing and investing decisions by using various techniques; discuss and debate the different alternatives available to the organization. Supplementary materials Teaching notes are available for educators only. Please contact your library to gain login details or email support@emeraldinsight.com to request teaching notes. Subject code CSS 1: Accounting and Finance.
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Efendi, Tino Feri, and Andriani Putri Wihartati. "Decision Support System for Share Investment Using The Capital Assetpricing Method (CAPM)." International Journal of Computer and Information System (IJCIS) 2, no. 1 (February 28, 2021): 18–22. http://dx.doi.org/10.29040/ijcis.v2i1.25.
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Investment is the placement of a number of funds at this time with the hope of obtaining benefits in the future. Stocks are one of the most popular investments. The current millennial generation is interested in investing in stocks because the capital required is not too large. However, in choosing a good stock for investment, the ability to read financial ratios is required. Errors in reading financial ratios will cause stock investment not to go as expected. To help with this, a system capable of supporting decisions is needed. There are several methods that can be used to produce a decision support system. In this study, the authors use the Capital Asset Pricing Model (CAPM) method in designing a decision support system in stock investment selection.The method in this research is through observation, interview, and literature study. The system design is made using Contex Diagram, HIPO, DAD, and database design. The system is made in a program with the PHP programming language. The process of determining the selection of stock investments using the Capital Asset Pricing Model (CAPM) method can simplify the determination process. Then with the method. can make it easier to determine the selection of stock investment.The final result in the stock investment selection process is a report that states investment (Ri> E) or not investment (Ri <E).
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Widilestariningtyas, Ony. "The Effect of Capital Expenditure and Operational Expenditure on Investment Decision." Proceeding of International Conference on Business, Economics, Social Sciences, and Humanities 3 (December 1, 2022): 797–808. http://dx.doi.org/10.34010/icobest.v3i.213.
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The purpose of this research is determines the extent to which capital expenditure decisions are made by listed agricultural sector companies. Companies in Indonesia are related to the value of the company in the long run.The number of companies listed on the IDX during this period was 26, and the sample size used was 10. With the help of regression analysis, the findings reveal that capital expenditure and operational expenditure have significant relationship with investment decisions. it can be concluded that the sector companies listed on the Indonesia Stock Exchange for the period 3 years 2019-2021 capital expenditure variables have a significant positive effect on investment decisions, then operational variables have an insignificant negative effect on investment decisions It is recommended that the management of agricultural sector enterprises should ensure:holistic use of all techniques, exploring risks, real options analysis and growth and portfolio management techniques involving capital assets, in valuing capital investments before taking decision. it can be concluded that the sector companies listed on the Indonesia Stock Exchange for the period 3 years 2019-2021 capital expenditure variables have a significant positive effect on investment decisions, then operational variables have an insignificant negative effect on investment decisions.
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Maya Nur Lestari. "Kajian Literatur: Faktor Yang Berpengaruh Terhadap Keputusan Investasi Mahasiswa." Jurnal Ekonomi Bisnis dan Akuntansi 3, no. 3 (November 16, 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.