The influence of behavioral factors in investment decisions: study of millennial investors in Kuala Lumpur
Traditionally, investing is viewed as a rational activity which is carried out based on one’s financial objectives. However, newer theories in investment behaviour view investing as a behavioural science, acknowledging that investors are human beings influenced by behavioural investment factors. Thi...
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HG Finance Loh, Tong Cheng The influence of behavioral factors in investment decisions: study of millennial investors in Kuala Lumpur |
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Traditionally, investing is viewed as a rational activity which is carried out based on one’s financial objectives. However, newer theories in investment behaviour view investing as a behavioural science, acknowledging that investors are human beings influenced by behavioural investment factors. This study surveyed 200 millennial investors from Kuala Lumpur, Malaysia, in order to investigate the behavioural factors
that affect their investment decision. Millennial investors refer to investors between the ages of 21 to 36 years old. Specifically, this study examines the factors which influence millennial investors’ investment decision based on heuristic theory, prospect theory, market factors, and herding effect. Data collection is done through a
questionnaire which is shared online. The findings reveal that both traditional finance theory and behavioural finance theory’s factors influence the respondents’ investment decision. Nevertheless, the behavioural finance theory’s factors of heuristics theory and herding effect have greater impact compared to traditional finance theory’s factors.
In addition, it is revealed that Malaysian investors in Kuala Lumpur perceive themselves to be more rational than they actually are. |
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Loh, Tong Cheng |
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Loh, Tong Cheng |
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Loh, Tong Cheng |
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The influence of behavioral factors in investment decisions: study of millennial investors in Kuala Lumpur |
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The influence of behavioral factors in investment decisions: study of millennial investors in Kuala Lumpur |
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The influence of behavioral factors in investment decisions: study of millennial investors in Kuala Lumpur |
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The influence of behavioral factors in investment decisions: study of millennial investors in Kuala Lumpur |
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The influence of behavioral factors in investment decisions: study of millennial investors in Kuala Lumpur |
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influence of behavioral factors in investment decisions: study of millennial investors in kuala lumpur |
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Universiti Utara Malaysia |
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School of Economics, Finance & Banking |
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2016 |
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https://etd.uum.edu.my/6096/1/s817523_01.pdf https://etd.uum.edu.my/6096/2/s817523_02.pdf |
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my-uum-etd.60962021-04-05T03:18:16Z The influence of behavioral factors in investment decisions: study of millennial investors in Kuala Lumpur 2016 Loh, Tong Cheng Nordin, Norhafiza School of Economics, Finance & Banking School of Economics, Finance and Banking HG Finance Traditionally, investing is viewed as a rational activity which is carried out based on one’s financial objectives. However, newer theories in investment behaviour view investing as a behavioural science, acknowledging that investors are human beings influenced by behavioural investment factors. This study surveyed 200 millennial investors from Kuala Lumpur, Malaysia, in order to investigate the behavioural factors that affect their investment decision. Millennial investors refer to investors between the ages of 21 to 36 years old. Specifically, this study examines the factors which influence millennial investors’ investment decision based on heuristic theory, prospect theory, market factors, and herding effect. Data collection is done through a questionnaire which is shared online. The findings reveal that both traditional finance theory and behavioural finance theory’s factors influence the respondents’ investment decision. Nevertheless, the behavioural finance theory’s factors of heuristics theory and herding effect have greater impact compared to traditional finance theory’s factors. In addition, it is revealed that Malaysian investors in Kuala Lumpur perceive themselves to be more rational than they actually are. 2016 Thesis https://etd.uum.edu.my/6096/ https://etd.uum.edu.my/6096/1/s817523_01.pdf text eng public https://etd.uum.edu.my/6096/2/s817523_02.pdf text eng public masters masters Universiti Utara Malaysia Ansari, L., & Moid, S. (2013). Factors affecting investment behavior among young professionals. International Journal of Technical Research and Applications, 27-32. Chambliss, D. F., & Schutt, R. K. (2015). Elementary Quantitative Data Analysis. 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Indian Journal of Applied Research, Vol 4, Issue. 9. Ton, H. T., & Dao, T. K. (2014). The effects of psychology on individual investors' behaviors: Evidence from the Vietnam Stock Exchange. Journal of Management and Sustainability, 125-134. Veeramani, G., & Karthikeyan, M. (2014). An analytic study on risk perception and return for individual investment. Asia Pacific Journal of Research, 4-13. Wikipedia (2016). List of countries median age. Retrieved 6 17, 2016, from Central Intelligence Agency: http://en.wikipedia.org/wiki/List_of_ countries_by_median_age #countries. |