Predicting Stock Market Investment Intention and Behavior among Malaysian Working Adults Using Partial Least Squares Structural Equation Modeling
The purpose of this study was to investigate the effects of risk tolerance, financial well-being, financial literacy, overconfidence bias, herding behavior, and social interaction on stock market investment intention and stock market participation among working adults in Malaysia. Adopting the cross...
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| Format: | Article |
| Language: | English |
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MDPI AG
2021-04-01
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| Series: | Mathematics |
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| Online Access: | https://www.mdpi.com/2227-7390/9/8/873 |
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| author | Marvello Yang Abdullah Al Mamun Muhammad Mohiuddin Sayed Samer Ali Al-Shami Noor Raihani Zainol |
| author_facet | Marvello Yang Abdullah Al Mamun Muhammad Mohiuddin Sayed Samer Ali Al-Shami Noor Raihani Zainol |
| author_sort | Marvello Yang |
| collection | DOAJ |
| description | The purpose of this study was to investigate the effects of risk tolerance, financial well-being, financial literacy, overconfidence bias, herding behavior, and social interaction on stock market investment intention and stock market participation among working adults in Malaysia. Adopting the cross-sectional design, this study collected quantitative data from a total of 349 respondents in an online survey via Google form link across various social media platforms. This study used the partial least squares structural equation modeling (PLS-SEM) approach to test the hypotheses. This study revealed the significant positive effects of risk tolerance, herding behavior, and social interaction on stock market investment intention. Stock market investment intention also had a significant effect on stock market participation. Stock market investment intention was also found to successfully mediate the relationships of risk tolerance and overconfidence bias with stock market participation. When it comes to stock market investment, the government and related authorities should focus on developing programs and policies that provide a financial safety net for investors and promote investment-related social platforms. This study linked risk tolerance, financial well-being, financial literacy, overconfidence bias, herding behavior, social interaction, stock market investment intention, and stock market participation. This is one of the few early attempts to address issues in light of the stock market investment participation among the working adults in a developing country. |
| first_indexed | 2024-03-10T12:17:32Z |
| format | Article |
| id | doaj.art-9ba6688bce6c45738c085ae22e000ec4 |
| institution | Directory Open Access Journal |
| issn | 2227-7390 |
| language | English |
| last_indexed | 2024-03-10T12:17:32Z |
| publishDate | 2021-04-01 |
| publisher | MDPI AG |
| record_format | Article |
| series | Mathematics |
| spelling | doaj.art-9ba6688bce6c45738c085ae22e000ec42023-11-21T15:45:05ZengMDPI AGMathematics2227-73902021-04-019887310.3390/math9080873Predicting Stock Market Investment Intention and Behavior among Malaysian Working Adults Using Partial Least Squares Structural Equation ModelingMarvello Yang0Abdullah Al Mamun1Muhammad Mohiuddin2Sayed Samer Ali Al-Shami3Noor Raihani Zainol4Department of Management, Faculty Economic and Business, Widya Dharma University Pontianak, Kota Pontianak, Kalimantan Barat 78243, IndonesiaFaculty of Business and Management, UCSI University, Cheras, Kuala Lumpur 56000, MalaysiaFaculty of Business Administration, Laval University, Quebec City, QC 2325, CanadaInstitute of Technology Management and Entrepreneurship, Universiti Teknikal Malaysia Melaka, Durian Tunggal, Melaka 76100, MalaysiaFaculty of Entrepreneurship and Business, Universiti Malaysia Kelantan, Pengkalan Chepa, Kota Bharu 16100, MalaysiaThe purpose of this study was to investigate the effects of risk tolerance, financial well-being, financial literacy, overconfidence bias, herding behavior, and social interaction on stock market investment intention and stock market participation among working adults in Malaysia. Adopting the cross-sectional design, this study collected quantitative data from a total of 349 respondents in an online survey via Google form link across various social media platforms. This study used the partial least squares structural equation modeling (PLS-SEM) approach to test the hypotheses. This study revealed the significant positive effects of risk tolerance, herding behavior, and social interaction on stock market investment intention. Stock market investment intention also had a significant effect on stock market participation. Stock market investment intention was also found to successfully mediate the relationships of risk tolerance and overconfidence bias with stock market participation. When it comes to stock market investment, the government and related authorities should focus on developing programs and policies that provide a financial safety net for investors and promote investment-related social platforms. This study linked risk tolerance, financial well-being, financial literacy, overconfidence bias, herding behavior, social interaction, stock market investment intention, and stock market participation. This is one of the few early attempts to address issues in light of the stock market investment participation among the working adults in a developing country.https://www.mdpi.com/2227-7390/9/8/873risk tolerancefinancial well-beingfinancial literacyoverconfidence biasherding behaviorsocial interaction |
| spellingShingle | Marvello Yang Abdullah Al Mamun Muhammad Mohiuddin Sayed Samer Ali Al-Shami Noor Raihani Zainol Predicting Stock Market Investment Intention and Behavior among Malaysian Working Adults Using Partial Least Squares Structural Equation Modeling Mathematics risk tolerance financial well-being financial literacy overconfidence bias herding behavior social interaction |
| title | Predicting Stock Market Investment Intention and Behavior among Malaysian Working Adults Using Partial Least Squares Structural Equation Modeling |
| title_full | Predicting Stock Market Investment Intention and Behavior among Malaysian Working Adults Using Partial Least Squares Structural Equation Modeling |
| title_fullStr | Predicting Stock Market Investment Intention and Behavior among Malaysian Working Adults Using Partial Least Squares Structural Equation Modeling |
| title_full_unstemmed | Predicting Stock Market Investment Intention and Behavior among Malaysian Working Adults Using Partial Least Squares Structural Equation Modeling |
| title_short | Predicting Stock Market Investment Intention and Behavior among Malaysian Working Adults Using Partial Least Squares Structural Equation Modeling |
| title_sort | predicting stock market investment intention and behavior among malaysian working adults using partial least squares structural equation modeling |
| topic | risk tolerance financial well-being financial literacy overconfidence bias herding behavior social interaction |
| url | https://www.mdpi.com/2227-7390/9/8/873 |
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