Information sources and investing decisions – a path modeling approach


Khan, Mohammad Tariqul Islam and Tan, Siow Hooi and Chong, Lee Lee (2017) Information sources and investing decisions – a path modeling approach. Managerial Finance, 43 (8). pp. 928-947. ISSN 0307-4358

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Given the special feature of institutional investors in Malaysia, the purpose of this paper is to explore how these investors acquire and employ different information sources in their investing decisions. The study uses self-reported information sources collected via a survey of 66 institutional investors following convenience sampling, and estimates the relationship via Smart-PLS (Partial Least Squares) path modeling. The results suggest that although investors place greater importance on fundamental and technical indicators, they do not implement these information sources in their decisions. Rather, gathering information from economic statistics and ratios, discussion with colleagues, historical returns of the Malaysian stock market, decisions of other market players, specialized press and stock exchange bulletins, and statements of opinion leaders are more closely related to trading, risk taking, and financial asset holding. This finding supports the limited information processing of bounded rationality, irrespective of the type of information source.

Item Type: Article
Uncontrolled Keywords: Institutional investors, Information sources, Investing decisions, Malaysia
Subjects: H Social Sciences > HG Finance > HG4501-6051 Investment, capital formation, speculation > HG4621 Stockbrokers. Security dealers. Investment advisers
Divisions: Faculty of Business (FOB)
Depositing User: Ms Rosnani Abd Wahab
Date Deposited: 26 Oct 2020 20:49
Last Modified: 26 Oct 2020 20:49


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