The influence of behavioral factors in investment decisions: study of millennial investors in Kuala Lumpur

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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Main Author: Loh, Tong Cheng
Format: Thesis
Language:eng
eng
Published: 2016
Subjects:
HG Finance
Online Access:https://etd.uum.edu.my/6096/1/s817523_01.pdf
https://etd.uum.edu.my/6096/2/s817523_02.pdf
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id my-uum-etd.6096
record_format uketd_dc
institution Universiti Utara Malaysia
collection UUM ETD
language eng
eng
advisor Nordin, Norhafiza
topic HG Finance
spellingShingle HG Finance
Loh, Tong Cheng
The influence of behavioral factors in investment decisions: study of millennial investors in Kuala Lumpur
description 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.
format Thesis
qualification_name masters
qualification_level Master's degree
author Loh, Tong Cheng
author_facet Loh, Tong Cheng
author_sort Loh, Tong Cheng
title The influence of behavioral factors in investment decisions: study of millennial investors in Kuala Lumpur
title_short The influence of behavioral factors in investment decisions: study of millennial investors in Kuala Lumpur
title_full The influence of behavioral factors in investment decisions: study of millennial investors in Kuala Lumpur
title_fullStr The influence of behavioral factors in investment decisions: study of millennial investors in Kuala Lumpur
title_full_unstemmed The influence of behavioral factors in investment decisions: study of millennial investors in Kuala Lumpur
title_sort influence of behavioral factors in investment decisions: study of millennial investors in kuala lumpur
granting_institution Universiti Utara Malaysia
granting_department School of Economics, Finance & Banking
publishDate 2016
url https://etd.uum.edu.my/6096/1/s817523_01.pdf
https://etd.uum.edu.my/6096/2/s817523_02.pdf
_version_ 1747828020787281920
spelling 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). 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Factors influencing individual investor behavior: An empirical study of the city of Karachi. IOSR Journal of Business and Management, 68-76. Luong, L. P., & Ha, D. T. (2011). Behavioral factors influencing individual investors' decision-making and performance: A survey at the Ho Chi Minh Stock Exchange. Sweden: Umeå School of Business. Mathews Asia. (2012). A singular focus on investing in Asia. USA: Mathews International Capital Management. Mobius, M. (2012, 04 25). An attractive destination for holidaps and IPO. Retrieved 8 15, 2015, from Investment Adventures in Emerging Markets: http://mobius.blog.franklintempleton.com/2012/07/ 25/malaysia/ Obamuyi, T. M. (2013). Factors influencing investment decisions in capital market: A study of individual investors in Nigeria. Organizations and Markets in Emerging Economies, 141-161. Phan, K. C., & Zhou, J. (2014). Factors influencing individual investor behavior: An empirical study of the Vietnamese stock market. 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