Factors Influencing Individuals' Short-term Investment Intentions
This article aimed to determine what drives investors short-term intention to invest following a more sociological and behavioural approach by including investor personality traits, behavioural finance biases these investors could be subject towards, and their risk tolerance behaviour. Based on the...
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| Format: | Article |
| Language: | English |
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EconJournals
2021-07-01
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| Series: | International Journal of Economics and Financial Issues |
| Online Access: | http://mail.econjournals.com/index.php/ijefi/article/view/11449 |
| _version_ | 1797920861570727936 |
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| author | Sune Ferreira-Schenk Zandri Dickason-Koekemoer Naveed Hussain Shah |
| author_facet | Sune Ferreira-Schenk Zandri Dickason-Koekemoer Naveed Hussain Shah |
| author_sort | Sune Ferreira-Schenk |
| collection | DOAJ |
| description |
This article aimed to determine what drives investors short-term intention to invest following a more sociological and behavioural approach by including investor personality traits, behavioural finance biases these investors could be subject towards, and their risk tolerance behaviour. Based on the complexity of the variables a multivariate statistical approach was preferred. Therefore, a structural equation model (SEM) was employed and proved to be a good model for the data. Secondary data was obtained from a pre-collected survey by a private investment firm for research purposes. The results indicated that investors who have strong extraversion, agreeableness and openness to experience personality traits will be more likely to invest in short-term investment portfolios. From the nine behavioural finance biases, one bias significantly explained investors short-term investment intentions. Investors who are overconfident in their investment skills tend to invest more in the short-term. It is therefore recommended to portfolio management companies that several sociological and behavioural variables do explain whether investors will be willing to invest in short-term or more long-term investment portfolios.
Keywords: risk tolerance, behavioural finance biases, personality traits, short-term investment
JEL Classifications: A14, G11, G41
DOI: https://doi.org/10.32479/ijefi.11449
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| first_indexed | 2024-04-10T14:07:50Z |
| format | Article |
| id | doaj.art-815cd2cb187d4b3da5a746947d7fa3fa |
| institution | Directory Open Access Journal |
| issn | 2146-4138 |
| language | English |
| last_indexed | 2024-04-10T14:07:50Z |
| publishDate | 2021-07-01 |
| publisher | EconJournals |
| record_format | Article |
| series | International Journal of Economics and Financial Issues |
| spelling | doaj.art-815cd2cb187d4b3da5a746947d7fa3fa2023-02-15T16:09:54ZengEconJournalsInternational Journal of Economics and Financial Issues2146-41382021-07-01114Factors Influencing Individuals' Short-term Investment IntentionsSune Ferreira-Schenk0Zandri Dickason-Koekemoer1Naveed Hussain Shah2North West UniversityNorth West UniversityUniversity of Swabi This article aimed to determine what drives investors short-term intention to invest following a more sociological and behavioural approach by including investor personality traits, behavioural finance biases these investors could be subject towards, and their risk tolerance behaviour. Based on the complexity of the variables a multivariate statistical approach was preferred. Therefore, a structural equation model (SEM) was employed and proved to be a good model for the data. Secondary data was obtained from a pre-collected survey by a private investment firm for research purposes. The results indicated that investors who have strong extraversion, agreeableness and openness to experience personality traits will be more likely to invest in short-term investment portfolios. From the nine behavioural finance biases, one bias significantly explained investors short-term investment intentions. Investors who are overconfident in their investment skills tend to invest more in the short-term. It is therefore recommended to portfolio management companies that several sociological and behavioural variables do explain whether investors will be willing to invest in short-term or more long-term investment portfolios. Keywords: risk tolerance, behavioural finance biases, personality traits, short-term investment JEL Classifications: A14, G11, G41 DOI: https://doi.org/10.32479/ijefi.11449 http://mail.econjournals.com/index.php/ijefi/article/view/11449 |
| spellingShingle | Sune Ferreira-Schenk Zandri Dickason-Koekemoer Naveed Hussain Shah Factors Influencing Individuals' Short-term Investment Intentions International Journal of Economics and Financial Issues |
| title | Factors Influencing Individuals' Short-term Investment Intentions |
| title_full | Factors Influencing Individuals' Short-term Investment Intentions |
| title_fullStr | Factors Influencing Individuals' Short-term Investment Intentions |
| title_full_unstemmed | Factors Influencing Individuals' Short-term Investment Intentions |
| title_short | Factors Influencing Individuals' Short-term Investment Intentions |
| title_sort | factors influencing individuals short term investment intentions |
| url | http://mail.econjournals.com/index.php/ijefi/article/view/11449 |
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