Psychological and Behavioural Drivers of Short-Term Investment Intentions
Analysing the factors that influence the short-term investment intentions of investors is critical for investment institutions. If investment institutions are informed about these factors they can create a framework to more accurately profile their clients to provide clients with the desired liquid...
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| Format: | Article |
| Language: | English |
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EconJournals
2022-07-01
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| Series: | International Journal of Economics and Financial Issues |
| Subjects: | |
| Online Access: | https://econjournals.com/index.php/ijefi/article/view/13064 |
| _version_ | 1797908543716720640 |
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| author | Evodia Mankuroane Wilme van Heerden Sune Ferreira-Schenk Zandri Dickason-Koekemoer |
| author_facet | Evodia Mankuroane Wilme van Heerden Sune Ferreira-Schenk Zandri Dickason-Koekemoer |
| author_sort | Evodia Mankuroane |
| collection | DOAJ |
| description |
Analysing the factors that influence the short-term investment intentions of investors is critical for investment institutions. If investment institutions are informed about these factors they can create a framework to more accurately profile their clients to provide clients with the desired liquidity, maturity dates and desired risk and return expectations. Risk tolerance is one of the elements that has been used over time to profile investors, however, this paper found that other factors should also be included. Therefore, this article aimed to determine what drives investors’ short-term investment intentions following a more sociological and behavioural approach by including investor personality traits, behavioural finance biases and investors’ risk tolerance behaviour. Secondary data was obtained from a private investment firm surveying private investors in South Africa. Male investors were also more likely to invest in the short-term compared to female investors. Several personality traits, risk tolerance and a single behavioural finance bias were found to influence investor intentions to invest 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.
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| first_indexed | 2024-04-10T10:54:30Z |
| format | Article |
| id | doaj.art-9474e2dd6f99440dada3899543433686 |
| institution | Directory Open Access Journal |
| issn | 2146-4138 |
| language | English |
| last_indexed | 2024-04-10T10:54:30Z |
| publishDate | 2022-07-01 |
| publisher | EconJournals |
| record_format | Article |
| series | International Journal of Economics and Financial Issues |
| spelling | doaj.art-9474e2dd6f99440dada38995434336862023-02-15T16:20:02ZengEconJournalsInternational Journal of Economics and Financial Issues2146-41382022-07-0112410.32479/ijefi.13064Psychological and Behavioural Drivers of Short-Term Investment IntentionsEvodia Mankuroane0Wilme van Heerden1Sune Ferreira-Schenk2Zandri Dickason-Koekemoer3North-West University, South AfricaNorth-West University, South AfricaNorth-West University, South AfricaNorth-West University, South Africa Analysing the factors that influence the short-term investment intentions of investors is critical for investment institutions. If investment institutions are informed about these factors they can create a framework to more accurately profile their clients to provide clients with the desired liquidity, maturity dates and desired risk and return expectations. Risk tolerance is one of the elements that has been used over time to profile investors, however, this paper found that other factors should also be included. Therefore, this article aimed to determine what drives investors’ short-term investment intentions following a more sociological and behavioural approach by including investor personality traits, behavioural finance biases and investors’ risk tolerance behaviour. Secondary data was obtained from a private investment firm surveying private investors in South Africa. Male investors were also more likely to invest in the short-term compared to female investors. Several personality traits, risk tolerance and a single behavioural finance bias were found to influence investor intentions to invest 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. https://econjournals.com/index.php/ijefi/article/view/13064Risk ToleranceBehavioural Finance BiasesPersonality TraitsShort-term InvestmentPrivate investment |
| spellingShingle | Evodia Mankuroane Wilme van Heerden Sune Ferreira-Schenk Zandri Dickason-Koekemoer Psychological and Behavioural Drivers of Short-Term Investment Intentions International Journal of Economics and Financial Issues Risk Tolerance Behavioural Finance Biases Personality Traits Short-term Investment Private investment |
| title | Psychological and Behavioural Drivers of Short-Term Investment Intentions |
| title_full | Psychological and Behavioural Drivers of Short-Term Investment Intentions |
| title_fullStr | Psychological and Behavioural Drivers of Short-Term Investment Intentions |
| title_full_unstemmed | Psychological and Behavioural Drivers of Short-Term Investment Intentions |
| title_short | Psychological and Behavioural Drivers of Short-Term Investment Intentions |
| title_sort | psychological and behavioural drivers of short term investment intentions |
| topic | Risk Tolerance Behavioural Finance Biases Personality Traits Short-term Investment Private investment |
| url | https://econjournals.com/index.php/ijefi/article/view/13064 |
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