How Rumors are Associated with Retail Investors’ Investment Decision Making

Retail investors’ decision-making process can become complex, causing them to rely on rumors to make investment decisions. However, research on rumors and retail investment decision-making in Malaysia is still lacking. This study aims to explore rumors from a social reality perspective, the source t...

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Main Author:	Tin, Shin Thed
Format:	Thesis
Language:	eng eng
Published:	2023
Subjects:	HG Finance
Online Access:	https://etd.uum.edu.my/10932/1/depositpermission-99187.pdf https://etd.uum.edu.my/10932/2/s99187_01.pdf
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id	my-uum-etd.10932
record_format	uketd_dc
spelling	my-uum-etd.109322024-01-28T01:16:40Z How Rumors are Associated with Retail Investors’ Investment Decision Making 2023 Tin, Shin Thed Othman, Zaleha Othman Yeop Abdullah Graduate School of Business Othman Yeop Abdullah Graduate School of Business HG Finance Retail investors’ decision-making process can become complex, causing them to rely on rumors to make investment decisions. However, research on rumors and retail investment decision-making in Malaysia is still lacking. This study aims to explore rumors from a social reality perspective, the source that facilitates rumors, and the association between rumors and retail investors’ investment decision-making. Bursa Malaysia was selected as the target exchange for this study to understand how the process of retail investors’ decision-making when it is associated with rumors. In the data collection process, this study embarked on a qualitative inquiry approach using Gioia methodology. A semi-structured interviews with 29 respondents was conducted using purposive sampling for the fieldwork. Data-structure analysis reveals four aggregate dimensions of how rumors are associated with retail investors’ investment decision-making, namely anticipated outcome, subjective probability, external factors, and fundamental principles. This study shows that rumor matters at the level of sociological influence, the mechanism of rumor spread, and the psychological perspective. These dimensions are associated with rumors and the investment decisions of retail investors. This study contributes to a better understanding of behavioral finance in retail investors' decision-making and its implications for the National Sustainable Development Goals (SDGs) program from a societal impact perspective. This study could also be a starting point for Bursa Malaysia and the Securities Commission Malaysia to investigate the actual existence of rumors, effective strategies to manage them, and their impact on the stock market and retail investors' investment decision making. 2023 Thesis https://etd.uum.edu.my/10932/ https://etd.uum.edu.my/10932/1/depositpermission-99187.pdf text eng staffonly https://etd.uum.edu.my/10932/2/s99187_01.pdf text eng public other doctoral Universiti Utara Malaysia
institution	Universiti Utara Malaysia
collection	UUM ETD
language	eng eng
advisor	Othman, Zaleha
topic	HG Finance
spellingShingle	HG Finance Tin, Shin Thed How Rumors are Associated with Retail Investors’ Investment Decision Making
description	Retail investors’ decision-making process can become complex, causing them to rely on rumors to make investment decisions. However, research on rumors and retail investment decision-making in Malaysia is still lacking. This study aims to explore rumors from a social reality perspective, the source that facilitates rumors, and the association between rumors and retail investors’ investment decision-making. Bursa Malaysia was selected as the target exchange for this study to understand how the process of retail investors’ decision-making when it is associated with rumors. In the data collection process, this study embarked on a qualitative inquiry approach using Gioia methodology. A semi-structured interviews with 29 respondents was conducted using purposive sampling for the fieldwork. Data-structure analysis reveals four aggregate dimensions of how rumors are associated with retail investors’ investment decision-making, namely anticipated outcome, subjective probability, external factors, and fundamental principles. This study shows that rumor matters at the level of sociological influence, the mechanism of rumor spread, and the psychological perspective. These dimensions are associated with rumors and the investment decisions of retail investors. This study contributes to a better understanding of behavioral finance in retail investors' decision-making and its implications for the National Sustainable Development Goals (SDGs) program from a societal impact perspective. This study could also be a starting point for Bursa Malaysia and the Securities Commission Malaysia to investigate the actual existence of rumors, effective strategies to manage them, and their impact on the stock market and retail investors' investment decision making.
format	Thesis
qualification_name	other
qualification_level	Doctorate
author	Tin, Shin Thed
author_facet	Tin, Shin Thed
author_sort	Tin, Shin Thed
title	How Rumors are Associated with Retail Investors’ Investment Decision Making
title_short	How Rumors are Associated with Retail Investors’ Investment Decision Making
title_full	How Rumors are Associated with Retail Investors’ Investment Decision Making
title_fullStr	How Rumors are Associated with Retail Investors’ Investment Decision Making
title_full_unstemmed	How Rumors are Associated with Retail Investors’ Investment Decision Making
title_sort	how rumors are associated with retail investors’ investment decision making
granting_institution	Universiti Utara Malaysia
granting_department	Othman Yeop Abdullah Graduate School of Business
publishDate	2023
url	https://etd.uum.edu.my/10932/1/depositpermission-99187.pdf https://etd.uum.edu.my/10932/2/s99187_01.pdf
_version_	1794023791726166016

How Rumors are Associated with Retail Investors’ Investment Decision Making

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