Psychological risk perception of investors in the Malaysia stock market: A study in Kota Kinabalu
Investment is the commitment of funds into stocks, savings and others for the purpose of obtaining a profit. Risk perception influences investors' decision to invest. The objectives of this study are to study the relationship between information asymmetry, financial knowledge and overconfidence...
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| Format: | Thesis |
| Language: | English |
| Published: |
2011
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| Subjects: | |
| Online Access: | https://eprints.ums.edu.my/id/eprint/7594/1/mt0000000267.pdf |
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| Summary: | Investment is the commitment of funds into stocks, savings and others for the purpose of obtaining a profit. Risk perception influences investors' decision to invest. The objectives of this study are to study the relationship between information asymmetry, financial knowledge and overconfidence, and risk perception of investors in Kota Kinabalu. Age, gender and education level were also
examine to determine their contingent effect on the relationships. A validated self-administered questionnaire, using a 7 point Likert-scale was distributed to 150
respondents at Innosabah Securities Limited Company. A total of 100 questionnaires were completely filled. Data were analyzed using factor analysis, Cronbach's alpha, Multiple regression and Hierarchical regression analysis. A p
value of <0.05 was considered statistically significant. Respondents were 46% female, 56% male, age ranged from 24 years to 60 years and 50% had university education. The analysis shows that only financial knowledge (p<0.048) and overconfidence (p<.000) were found to be positively related to risk perception. There were no significant value that age, gender and education level moderates the relationship between information asymmetry financial knowledge and
overconfidence, and risk perception. These findings are expected to assist financial advisors on portfolio assessment and indirectly provide better advice to investors. |
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