Understanding Investor Behavior: The Impact of Risk Perception, Financial Stress, and Literacy on Investment Decisions

Pankaj Kumar, Sana Beg, Mohd Shafeeq

back

References:

  1. Agarwal, V., P. Ghosh, and H. Zhao (2019). Extreme Stress and Investor Behavior: Evidence from a Natural Experiment. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.3445135

  2. Ajzen, Icek (1991). The theory of planned behavior. Organizational Behavior and Human Decision Processes, 50(2), 179-211. https://doi.org/10.1016/0749-5978(91)90020-T

  3. Akerlof, George A., and Robert J. Shiller (2009). Animal spirits: How human psychology drives the economy, and why it matters for global capitalism (pp. xiv, 230). Princeton University Press.

  4. Ansari, Lubna, and Sana Moid (2013). Factors affecting investment behaviour among young professionals. International Journal of Technical Research and Applications, 1(2), 27–32.

  5. Arif, Kashif (2015). Financial literacy and other factors influencing individuals' investment decision: Evidence from a developing economy (Pakistan). Journal of Poverty, Investment and Development, 12(1), 74–84.

  6. Bairagi, Palash, and Anindita Chakraborty (2018). Influence of Risk-Perception on Retail Investors' Decision Making. Asian Journal of Management, 9(2), 999. https://doi.org/10.5958/2321-5763.2018.00157.9

  7. Baker, H. Kent, Greg Filbeck, Victor Ricciardi (Eds.). (2017). Financial Behavior: An Overview. In Financial Behavior: Players, Services, Products, and Markets (p. 0). Oxford University Press. https://doi.org/10.1093/acprof:oso/9780190269999.003.0001

  8. Barberis, Nicholas (2003). A Survey of Behavioral Finance. Handbook of the Economics of Finance, chapter 18,. https://irrationalinvestors.com/wp-content/uploads/2017/10/a-survey-of-behavioral-finance.pdf

  9. Barberis, Nicholas, and Ming Huang. (2001). Mental Accounting, Loss Aversion, and Individual Stock Returns. The Journal of Finance, 56(4), 1247-1292. https://doi.org/10.1111/0022-1082.00367

  10. Bhushan, Puneet (2014). Relationship between Financial Literacy and Investment Behavior of Salaried Individuals. Journal of Business Management & Social Sciences Research, 3(5), 82–87.

  11. Bulsara, P. Hemantkumar, Heta A. Desai, and Hela Miniaoui (2015). An exploratory study of consumer demeanor towards financial investment. Investment Management and Financial Innovations, 12(1), 124–133.

  12. Chin, W. Wynne (1998). Commentary: Issues and Opinion on Structural Equation Modeling. MIS Quarterly, 22(1), vii-xvi. https://www.jstor.org/stable/249674

  13. Choudhary, Kapil, Smriti Kamboj, and Sakshi Mehta. (2021). Financial literacy, investment behaviour and socio-demographic variables: Evidence from India. International Journal of Behavioural Accounting and Finance, 6(3), 243–261. https://doi.org/10.1504/IJBAF.2021.116167

  14. Dijkstra, Theo K., and Jorg Henseler (2015). Consistent and asymptotically normal PLS estimators for linear structural equations. Computational Statistics & Data Analysis, 81, 10-23. https://doi.org/10.1016/j.csda.2014.07.008

  15. Fachrudin, Khaira Amalia, and Siti Latifah (2022). Relationship between individual characteristics, neurotic personality, personal financial distress, and financial behavior. Cogent Business & Management, 9(1), 2105565. https://doi.org/10.1080/23311975.2022.2105565

  16. Fama, Eugene F. (1991). Efficient Capital Markets: II. The Journal of Finance, 46(5), 1575-1617. https://doi.org/10.1111/j.1540-6261.1991.tb04636.x

  17. Fornell, Claes, and David F. Larcker (1981). Evaluating Structural Equation Models with Unobservable Variables and Measurement Error. Journal of Marketing Research, 18(1), 39-50. https://doi.org/10.2307/3151312

  18. Gangwar, Rachna, and Ritvik Singh (2018). Analyzing Factors Affecting Financial Literacy and Its Impact on Investment Behavior Among Adults in India. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.3266655

  19. Gold, Andrew H., Arvind Malhotra, and Albert H. Segars (2001). Knowledge Management: An Organizational Capabilities Perspective. Journal of Management Information Systems, 18(1), 185-214. https://doi.org/10.1080/07421222.2001.11045669

  20. Gupta, Ekanshi, Preetibedi Preetibedi, And Poona Mlakra (2014). Efficient market hypothesis V/S behavioural finance. IOSR Journal of Business and Management, 16(4), 56-60. https://scholar.google.com/scholar?cluster=7003828526857309583&hl=en&oi=scholarr

  21. Hair, Joseph. F. Jr., G.Thomas M. Hult, Christian M. Ringle, and Maeko Sarstedt (Eds.). (2017). A primer on partial least squares structural equation modeling (PLS-SEM) (Second edition). Sage.

  22. Hastings, Justine S., and Olivia S. Mitchell (2020). How financial literacy and impatience shape retirement wealth and investment behaviors. Journal of Pension Economics & Finance, 19(1), 1-20.
    https://www.cambridge.org/core/journals/journal-of-pension-economics-and-finance/article/how-financial-literacy-and-impatience-shape-retirement-wealth-and-investment-behaviors/E52C28EFB25C76235F7ED0BB82FB6283

  23. Henseler, Jorg, Christian M. Ringle, and Marko Sarstedt (2015). A new criterion for assessing discriminant validity in variance-based structural equation modeling. Journal of the Academy of Marketing Science, 43(1), 115-135. https://doi.org/10.1007/s11747-014-0403-8

  24. Hershey, D. A., J. C. Mowen, and J.M. Jacobs-Lawson (2003). An Experimental Comparison of Retirement Planning Intervention Seminars. Educational Gerontology, 29(4), 339-359. https://doi.org/10.1080/713844333

  25. Hogarth, Jeanne. M., and Marianne A. Hilgert (2002). Financial knowledge, experience and learning preferences: Preliminary results from a new survey on financial literacy. Consumer Interest Annual, 48(1), 1-7.

  26. Jain, Jinesh, Nidhi Walia, Simarjeet Singh, and Esha Jain (2022). Mapping the field of behavioural biases: A literature review using bibliometric analysis. Management Review Quarterly, 72(3), 823-855. https://doi.org/10.1007/s11301-021-00215-y

  27. Jariwala, Harsha V. (2015). Analysis of Financial Literacy Level of Retail Individual Investors of Gujarat State and Its Effect on Investment Decision. Journal of Business & Finance Librarianship, 20(1-2), 133-158. https://doi.org/10.1080/08963568.2015.977727

  28. Jayaraj. S. (2013). The Factor Model for Determining the Individual Investment behavior in India. IOSR Journal of Economics and Finance, 1(4), 21-32. https://doi.org/10.9790/5933-0142132

  29. Kahneman, Daniel, and Amos Tversky (2013). Prospect Theory: An Analysis of Decision Under Risk. In L. C. MacLean & W. T. Ziemba, World Scientific Handbook in Financial Economics Series (Vol. 4, pp. 99-127). WORLD SCIENTIFIC. https://doi.org/10.1142/9789814417358_0006

  30. Kesharwani, Ankit, and Shailendra Singh Bisht (2012). The impact of trust and perceived risk on internet banking adoption in India: An extension of technology acceptance model. International Journal of Bank Marketing, 30(4), 303-322. https://doi.org/10.1108/02652321211236923

  31. Kline, Rex B. (2016). Principles and practice of structural equation modeling, 4th ed (pp. xvii, 534). Guilford Press.

  32. Likert, Rensis (1932). A technique for the measurement of attitudes. Archives of Psychology, 22(140), 5–55. https://legacy.voteview.com/pdf/Likert_1932.pdf

  33. Lo, Andrew W. (2004). The Adaptive Markets Hypothesis: Market Efficiency from an Evolutionary Perspective (SSRN Scholarly Paper 602222). https://papers.ssrn.com/abstract=602222

  34. Lopez-Gutierrez, Carlos, Sergio Sanfilippo-Azofra, and Begona Torre-Olmo (2015). Investment decisions of companies in financial distress. BRQ Business Research Quarterly, 18(3), 174-187. https://doi.org/10.1016/j.brq.2014.09.001

  35. Lusardi, Annamaria, and Olivia Mitchell. (2014). The Economic Importance of Financial Literacy: Theory and Evidence. Journal of Economic Literature, 52(1), 5-44. https://doi.org/10.1257/jel.52.1.5

  36. Lusardi, Annamaria, and Peter Tufano (2015). Debt literacy, financial experiences, and overindebtedness. Journal of Pension Economics & Finance, 14(4), 332-368. https://www.cambridge.org/core/journals/journal-of-pension-economics-and-finance/article/debt-literacy-financial-experiences-and-overindebtedness/6140546AF9CA1BAC33FAE47F35C5C178

  37. Malkiel, Burton G. (2003). The efficient market hypothesis and its critics. Journal of Economic Perspectives, 17(1), 59-82. https://www.aeaweb.org/articles?id=10.1257/089533003321164958

  38. Markowitz, Harry (1952). Portfolio Selection. The Journal of Finance, 7(1), 77-91. https://doi.org/10.2307/2975974

  39. Nugraha, Rifqi Kurnia, Arlina Putri Eksanti, and Yustus Odema Haloho (2022). The Influence Of Financial Literacy And Financial Behavior On Investment Decision. Jurnal Ilmiah Manajemen Dan Bisnis, 8(1), 68. https://doi.org/10.22441/jimb.v8i1.13535

  40. Nunnally, Jum C. (1978). Psychometric Theory. McGraw-Hill.

  41. Nur Aini, Nadia Septi, and L. Lutfi. (2019). The influence of risk perception, risk tolerance, overconfidence, and loss aversion towards investment decision making. Journal of Economics, Business, & Accountancy Ventura, 21(3), 401-413. https://doi.org/10.14414/jebav.v21i3.1663

  42. Putri, Ni Made Dwiyana Rasuma, and Henny Rahyuda (2017). Pengaruh tingkat financial literacy dan faktor sosiodemografi terhadap perilaku keputusan investasi individu. E-Jurnal Ekonomi Dan Bisnis Universitas Udayana, 6(9), 3407–3434. https://www.academia.edu/download/73778002/20363.pdf

  43. Rizvi, Rabeea, and Afsheen Abrar (2015). Factors Affecting an Individual Investor Behavior-An Empirical Study in Twin Cities (Rawalpindi and Islamabad) of Pakistan. 5(5), 1–27.

  44. Rusu Valentina Diana, and Angela Roman (2020). Assessing the Role of Access to Finance for Young Potential Entrepreneurs: The Case of Romania . KnE Social Sciences, 4(1), 301–324. https://doi.org/10.18502/kss.v4i1.5996

  45. Shafi, Haroon, Mubashir Hussain, Syed Imran Sajjad, and Kashif Ur Rehman (2011). Relationship between Risk Perception and Employee Investment Behavior. Journal of Economics and Behavioral Studies, 3(6), 345-351. https://doi.org/10.22610/jebs.v3i6.289

  46. Shafi, Mohammad (2014). Determinants Influencing Individual Investor Behavior in Stock Market: A Cross Country Research Survey. Nigerian Chapter of Arabian Journal of Business and Management Review, 2(1), 60-71. https://doi.org/10.12816/0003720

  47. Shiller, Robert J. (2005). Irrational exuberance (2nd ed). Currency/Doubleday.

  48. Slovic, Paul (1987). Perception of risk. Science, 236(4799), 280-285. https://doi.org/10.1126/science.3563507

  49. Thind, Sukhpreet Kuar, and Asim Ray (2023). Evaluating The Impact of Financial Literacy Programs on Investment Behaviours: A Survey Study. European Economic Letters (EEL), 13(5), 1592-1607. https://doi.org/10.52783/eel.v13i5.941

  50. Trang, Phung Thai Minh, and Nguyen Huu Tho (2017). Perceived risk, investment performance and intentions in emerging stock markets. International Journal of Economics and Financial Issues, 7(1), 269-278. https://dergipark.org.tr/en/pub/ijefi/issue/32002/353185

  51. Van Rooij Maarten, Annamaria Lusardi, and Rob Alessie (2011). Financial literacy and stock market participation. Journal of Financial Economics, 101(2), 449-472. https://www.sciencedirect.com/science/article/pii/S0304405X11000717

  52. Vanderpal, Geoffrey, and Randy Brazie. (2022). Influence of Basic Human Behaviors (Influenced by Brain Architecture and Function), and Past Traumatic Events on Investor Behavior and Financial Bias. Journal of Accounting and Finance, 22(2). https://doi.org/10.33423/jaf.v22i2.5137

  53. Veena M. (2020). Determination of factors Exerting Influence on Investment Behavior with Special Focus on Working Women. EPRA International Journal of Multidisciplinary Research (IJMR), 6(8), 286–296. https://doi.org/10.36713/epra4971
  54. Weber, Elke U., and Richard A. Milliman (1997). Perceived Risk Attitudes: Relating Risk Perception to Risky Choice. Management Science, 43(2), 123-144. https://doi.org/10.1287/mnsc.43.2.123

  55. Weller, Christian E., and Amy Helburn (2010). Financial Stress and Asymmetric Financial Decisions. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.2004765

  56. Yao, Rui, Sherman Hanna, and Suzanne Lindamood (2004). Changes in financial risk tolerance 1983-2001. Financial Services Review, 13, 249–266. https://dx.doi.org/10.2139/ssrn.2004765



Copyright © 2009 | All rights reserved