Determinants of investment decision-making

Citation

Mahmoud Aldomy, Rakan Fuad (2015) Determinants of investment decision-making. Masters thesis, Multimedia University.

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Abstract

Traditional finance theories believe that investors behave rationally in making decisions and all trading activities are based on the available information in the market. However, in the real world, individual’s investors (working adults) make tons of irrational decisions subconsciously and this even occurs when making an investment decision. Investors’ decision making may be driven by behavioural and demographic prejudice. The primary objective of this study is to investigate the demographic and behavioural factors that influence investment decisions for working adults. Demographic factors such as Gender, age, income, educational, marital status and experience. Behavioural factors such as herd behaviour, risk, overconfidence and emotional have been selected in this study to examine how these demographic and behaviours affect the investment decision making for working adults. Data are collected through survey questionnaires from 150 respondents. The collected data are computed by using the SPSS software to determine the relationship of demographic and behavioural factors and investment decision making. Frequency analysis, descriptive analysis, reliability analysis, ANOVA analysis. T test analysis, multiple regression analysis and Stepwise multiple regression analysis are used in this research.The result proves that behavioural factors are influencing the investment decisions for working adults. The finding in this research suggests that herding, risk perception, overconfidence and emotional have an impact on investor decision making whereas demographic factors is shown to have no impact on investment decision. As a result, this study provides a good reference for Malaysian investors to understand how behavioural factors influence their investment decision. Through this study, investors are also able to know their behavioural pattern when making decisions and help them to know their weaknesses and make decisions wisely in the market.

Item Type: Thesis (Masters)
Additional Information: Call No.: HD30.23 R35 2015
Subjects: H Social Sciences > HD Industries. Land use. Labor
H Social Sciences > HD Industries. Land use. Labor > HD28-70 Management. Industrial Management > HD30.23 Decision making
Divisions: Faculty of Management (FOM) > MBA Programme
Depositing User: Ms Nurul Iqtiani Ahmad
Date Deposited: 15 May 2015 09:13
Last Modified: 18 Jun 2015 08:43
URII: http://shdl.mmu.edu.my/id/eprint/6221

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