Determinants of investment decision-making

Traditional finance theories believe that investors behave rationally in making decisions and all trading activities are based on the available information in the market. However, in the real world, individual’s investors (working adults) make tons of irrational decisions subconsciously and this eve...

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Main Author: Mahmoud Aldomy, Rakan Fuad
Format: Thesis
Published: 2015
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spelling my-mmu-ep.62212015-06-18T08:43:40Z Determinants of investment decision-making 2015-02 Mahmoud Aldomy, Rakan Fuad HD Industries. Land use. Labor HD30.23 Decision making Traditional finance theories believe that investors behave rationally in making decisions and all trading activities are based on the available information in the market. However, in the real world, individual’s investors (working adults) make tons of irrational decisions subconsciously and this even occurs when making an investment decision. Investors’ decision making may be driven by behavioural and demographic prejudice. The primary objective of this study is to investigate the demographic and behavioural factors that influence investment decisions for working adults. Demographic factors such as Gender, age, income, educational, marital status and experience. Behavioural factors such as herd behaviour, risk, overconfidence and emotional have been selected in this study to examine how these demographic and behaviours affect the investment decision making for working adults. Data are collected through survey questionnaires from 150 respondents. The collected data are computed by using the SPSS software to determine the relationship of demographic and behavioural factors and investment decision making. Frequency analysis, descriptive analysis, reliability analysis, ANOVA analysis. T test analysis, multiple regression analysis and Stepwise multiple regression analysis are used in this research.The result proves that behavioural factors are influencing the investment decisions for working adults. The finding in this research suggests that herding, risk perception, overconfidence and emotional have an impact on investor decision making whereas demographic factors is shown to have no impact on investment decision. As a result, this study provides a good reference for Malaysian investors to understand how behavioural factors influence their investment decision. Through this study, investors are also able to know their behavioural pattern when making decisions and help them to know their weaknesses and make decisions wisely in the market. 2015-02 Thesis http://shdl.mmu.edu.my/6221/ http://library.mmu.edu.my/diglib/onlinedb/dig_lib.php masters Multimedia University Graduate School of Management
institution Multimedia University
collection MMU Institutional Repository
topic HD Industries
Land use
Labor
HD30.23 Decision making
spellingShingle HD Industries
Land use
Labor
HD30.23 Decision making
Mahmoud Aldomy, Rakan Fuad
Determinants of investment decision-making
description Traditional finance theories believe that investors behave rationally in making decisions and all trading activities are based on the available information in the market. However, in the real world, individual’s investors (working adults) make tons of irrational decisions subconsciously and this even occurs when making an investment decision. Investors’ decision making may be driven by behavioural and demographic prejudice. The primary objective of this study is to investigate the demographic and behavioural factors that influence investment decisions for working adults. Demographic factors such as Gender, age, income, educational, marital status and experience. Behavioural factors such as herd behaviour, risk, overconfidence and emotional have been selected in this study to examine how these demographic and behaviours affect the investment decision making for working adults. Data are collected through survey questionnaires from 150 respondents. The collected data are computed by using the SPSS software to determine the relationship of demographic and behavioural factors and investment decision making. Frequency analysis, descriptive analysis, reliability analysis, ANOVA analysis. T test analysis, multiple regression analysis and Stepwise multiple regression analysis are used in this research.The result proves that behavioural factors are influencing the investment decisions for working adults. The finding in this research suggests that herding, risk perception, overconfidence and emotional have an impact on investor decision making whereas demographic factors is shown to have no impact on investment decision. As a result, this study provides a good reference for Malaysian investors to understand how behavioural factors influence their investment decision. Through this study, investors are also able to know their behavioural pattern when making decisions and help them to know their weaknesses and make decisions wisely in the market.
format Thesis
qualification_level Master's degree
author Mahmoud Aldomy, Rakan Fuad
author_facet Mahmoud Aldomy, Rakan Fuad
author_sort Mahmoud Aldomy, Rakan Fuad
title Determinants of investment decision-making
title_short Determinants of investment decision-making
title_full Determinants of investment decision-making
title_fullStr Determinants of investment decision-making
title_full_unstemmed Determinants of investment decision-making
title_sort determinants of investment decision-making
granting_institution Multimedia University
granting_department Graduate School of Management
publishDate 2015
_version_ 1747829606753239040