Evaluating short- and long-term investment strategies: development and validation of the investment strategies scale (ISS)
Abstract Purpose In response to the growing importance of understanding individual investment strategies, the present study aimed to develop a new scale for measuring both the short- and long-term investment strategies of individuals. Design/methodology/approach The study assessed the psychometric p...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
| Published: |
SpringerOpen
2024-02-01
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| Series: | Financial Innovation |
| Subjects: | |
| Online Access: | https://doi.org/10.1186/s40854-023-00573-4 |
| _version_ | 1797273550855340032 |
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| author | Ibrahim Arpaci Omer Aslan Mustafa Kevser |
| author_facet | Ibrahim Arpaci Omer Aslan Mustafa Kevser |
| author_sort | Ibrahim Arpaci |
| collection | DOAJ |
| description | Abstract Purpose In response to the growing importance of understanding individual investment strategies, the present study aimed to develop a new scale for measuring both the short- and long-term investment strategies of individuals. Design/methodology/approach The study assessed the psychometric properties of the investment strategies scale (ISS) using data collected from 1428 individual investors. In the initial study, an exploratory factor analysis (EFA) was conducted to investigate the factor structure of the proposed scale (N = 700). The EFA results yielded a two-factor structure, and Cronbach’s alpha values for short- and long-term investment strategies were 0.90 and 0.88, respectively. A confirmatory factor analysis was performed to validate the factor structure of the scale in the second study (N = 728). Findings The results demonstrated that the two-factor model fit the data well. In the third study, the correlation between Hofstede’s long-term orientation and the two dimensions of the scale was investigated. The results indicated that long-term investment strategies significantly predict long-term orientation, thus confirming the concurrent validity of the scale. Research implications These findings demonstrate that the proposed ISS is a reliable and valid instrument for measuring individuals’ short- and long-term investment strategies, contributing to a deeper understanding of investment decision-making processes. Originality/value This study introduces a novel measurement tool—ISS—specifically designed to comprehensively assess both short- and long-term investment strategies among individual investors. |
| first_indexed | 2024-03-07T14:46:00Z |
| format | Article |
| id | doaj.art-b71169fcefd74ce48402748a0ab87bde |
| institution | Directory Open Access Journal |
| issn | 2199-4730 |
| language | English |
| last_indexed | 2024-03-07T14:46:00Z |
| publishDate | 2024-02-01 |
| publisher | SpringerOpen |
| record_format | Article |
| series | Financial Innovation |
| spelling | doaj.art-b71169fcefd74ce48402748a0ab87bde2024-03-05T20:01:41ZengSpringerOpenFinancial Innovation2199-47302024-02-0110111710.1186/s40854-023-00573-4Evaluating short- and long-term investment strategies: development and validation of the investment strategies scale (ISS)Ibrahim Arpaci0Omer Aslan1Mustafa Kevser2Department of Software Engineering, Faculty of Engineering and Natural Sciences, Bandirma Onyedi Eylul UniversityDepartment of Software Engineering, Faculty of Engineering and Natural Sciences, Bandirma Onyedi Eylul UniversityDepartment of Banking and Insurance, Bandirma Onyedi Eylul UniversityAbstract Purpose In response to the growing importance of understanding individual investment strategies, the present study aimed to develop a new scale for measuring both the short- and long-term investment strategies of individuals. Design/methodology/approach The study assessed the psychometric properties of the investment strategies scale (ISS) using data collected from 1428 individual investors. In the initial study, an exploratory factor analysis (EFA) was conducted to investigate the factor structure of the proposed scale (N = 700). The EFA results yielded a two-factor structure, and Cronbach’s alpha values for short- and long-term investment strategies were 0.90 and 0.88, respectively. A confirmatory factor analysis was performed to validate the factor structure of the scale in the second study (N = 728). Findings The results demonstrated that the two-factor model fit the data well. In the third study, the correlation between Hofstede’s long-term orientation and the two dimensions of the scale was investigated. The results indicated that long-term investment strategies significantly predict long-term orientation, thus confirming the concurrent validity of the scale. Research implications These findings demonstrate that the proposed ISS is a reliable and valid instrument for measuring individuals’ short- and long-term investment strategies, contributing to a deeper understanding of investment decision-making processes. Originality/value This study introduces a novel measurement tool—ISS—specifically designed to comprehensively assess both short- and long-term investment strategies among individual investors.https://doi.org/10.1186/s40854-023-00573-4Financial literacyInvestment strategiesIndividual investorsInvestment strategies scale |
| spellingShingle | Ibrahim Arpaci Omer Aslan Mustafa Kevser Evaluating short- and long-term investment strategies: development and validation of the investment strategies scale (ISS) Financial Innovation Financial literacy Investment strategies Individual investors Investment strategies scale |
| title | Evaluating short- and long-term investment strategies: development and validation of the investment strategies scale (ISS) |
| title_full | Evaluating short- and long-term investment strategies: development and validation of the investment strategies scale (ISS) |
| title_fullStr | Evaluating short- and long-term investment strategies: development and validation of the investment strategies scale (ISS) |
| title_full_unstemmed | Evaluating short- and long-term investment strategies: development and validation of the investment strategies scale (ISS) |
| title_short | Evaluating short- and long-term investment strategies: development and validation of the investment strategies scale (ISS) |
| title_sort | evaluating short and long term investment strategies development and validation of the investment strategies scale iss |
| topic | Financial literacy Investment strategies Individual investors Investment strategies scale |
| url | https://doi.org/10.1186/s40854-023-00573-4 |
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