Factors Influencing the Investor’s Decision Making: The Moderating Role of Locus of Control

• 발행기관: 한국유통과학회
• 저자명: Hafiz Waqas KAMRAN Abthal QAISAR Nayyer SULTANA Muhammad Atif NAWAZ Hafiz Tanveer AHMAD
• 간행물 정보: 『The Journal of Asian Finance, Economics and Business(JAFEB)』Vol. 7 No.12, 535~543쪽, 전체 9쪽
• 주제분류: 경제경영 > 경제학
• 파일형태: PDF
• 발행일자: 2020.12.30

영문 초록

Investors from the whole world are looking for those stock markets that are less affected by interest rates. Pakistan is a good place to invest and the investors from the whole world are considering Pakistan for future ventures. The current study, therefore, aims to analyze the factors affecting investors’ decision making in Pakistan with the interaction effect of locus of control. The primary data are gathered from 300 respondents. Structural equation modelling (SEM-PLS) is used to analyze the interactions among variables. The study finds positive impact of availability and representative biases on investment decision making. The study could not find any moderating role of locus of control. The results imply that decisions made by Pakistani investors are driven by the most easily or currently available information and they trust on the information obtained from family and friends without any authentication and verification. One possible description of insignificant moderation effect of locus of control can be the sample traits used in the study, e.g., personal characteristics, that change from culture to culture. Another description of these findings may be the association between heuristic biases, including availability, representative and psychological biases and decision-making regarding investment is not personality specific.

목차

1. Introduction

2. Literature Review

3. Data and Methodology

4. Empirical Results

5. Discussions and Conclusions

References

키워드

Representative Bias Availability Bias Psychology Bias Investment Decision Making Locus of Control