The Influence Factors of Young People in Making Investment Decisions
Abstract
The purpose of this study is to study the influence factors of young people in making investment decisions. Qualitative methods by collecting previous literature review are used to find out the factors that influences young people’s investment decisions. This study provides empirical evidence that there are four factors that influences investment decisions among young people. The first one is knowledge, second is confidence level, third is risk behaviour and last is return promises. This article explores about investment among young people, their risk behaviour and confidence level. The articles begin by outlining about young people and investment, risk and return and confidence and knowledge level. Other factors based on previous findings that influence investment decisions also included. The article then discusses the challenge and constraint in investment industry. The final section discusses the effect of investment industry towards economic performance. And finally, the article ends with conclusion parts.
References
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Kuzucu, S. (2018). Do Foreign Direct Investment and Portfolio Investment Stimulate Economic Growth? Evidence From Developing Countries. Journal of Economics Finance and Accounting, 5(4), 331-338.
Lian, C., Ma, Y., & Wang, C. (2019). Low interest rates and risk-taking: Evidence from individual investment decisions. The Review of Financial Studies, 32(6), 2107-2148.
Liu, Y., Huang, Z., Jiang, L., & Messier Jr, W. F. (2020). Are investors warned by disclosure of conflicts of interest? The moderating effect of investment horizon. The Accounting Review, 95(6), 291-310.
Nicolescu, L., & Tudorache, F. G. (2020). Investment behaviour in mutual funds: is it a knowledge-based decision?. Kybernetes, 50(10), 2726-2752.
PH, H., & Uchil, R. (2020). Influence of investor sentiment and its antecedent on investment decision-making using partial least square technique. Management Research Review, 43(11), 1441-1459.
Pikulina, E., Renneboog, L., & Tobler, P. N. (2017). Overconfidence and investment: An experimental approach. Journal of Corporate Finance, 43, 175-192.
Qiying, W. (2020). Empirical Research on the Investment Performance of Information and Communication Technology in China. International Journal of Economics and Finance, 12(2), 1-94.
Rabbani, A., Grable, J. E., Woodyard, A., & Yao, Z. (2018). Describing investor profiles: A test of the associations among financial knowledge, confidence, and help and information source. Financial Services Review, 27(3).
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Yao, Z., & Rabbani, A. G. (2021). Association between investment risk tolerance and portfolio risk: The role of confidence level. Journal of Behavioral and Experimental Finance, 30, 100482.
Albulescu, C. T. (2015). Do foreign direct and portfolio investments affect long-term economic growth in central and Eastern Europe?. Procedia economics and finance, 23, 507-512.
Arif, K. (2015). Financial literacy and other factors influencing individuals’ investment decision: Evidence from a developing economy (Pakistan). Journal of Poverty, Investment and Development: An International Peereviewed Journal, 12(2015), 74-84.
Bartik, T. J. (2011). Investing in kids: Early childhood programs and local economic development. WE Upjohn Institute.
Bartik, T. J. (2011). Why investing in kids makes sense for local economies. Employment Research Newsletter, 18(2), 1.
Bassetto, C. F., & Kalatzis, A. E. (2011). Financial distress, financial constraint and investment decision: Evidence from Brazil. Economic modelling, 28(1-2), 264-271.
Campbell, J. Y. (1996). Understanding risk and return. Journal of Political economy, 104(2), 298-345.
Dash, M. K. (2010). Factors influencing investment decision of generations in India: An econometric study. Int. J. Buss. Mgt. Eco. Res, 1(1), 15-26.
Feld, J., Sauermann, J., & De Grip, A. (2017). Estimating the relationship between skill and overconfidence. Journal of behavioral and experimental economics, 68, 18-24.
Fischer, M., & Sliwka, D. (2018). Confidence in knowledge or confidence in the ability to learn: An experiment on the causal effects of beliefs on motivation. Games and Economic Behavior, 111, 122-142.
Guariglia, A. (2008). Internal financial constraints, external financial constraints, and investment choice: Evidence from a panel of UK firms. Journal of banking & finance, 32(9), 1795-1809.
Gylfason, T., & Zoega, G. (2006). Natural resources and economic growth: The role of investment. World Economy, 29(8), 1091-1115.
Jagannathan, R., & Kocherlakota, N. R. (1996). Why should older people invest less in stocks than younger people. Federal Reserve Bank of Minneapolis Quarterly Review, 20, 11-20.
Keswani, S., Dhingra, V., & Wadhwa, B. (2019). Impact of behavioral factors in making investment decisions and performance: study on investors of National Stock Exchange. International Journal of Economics and Finance, 11(8), 80-90.
Korniotis, G. M., & Kumar, A. (2011). Do older investors make better investment decisions?. The Review of Economics and Statistics, 93(1), 244-265.
Kuzucu, S. (2018). Do Foreign Direct Investment and Portfolio Investment Stimulate Economic Growth? Evidence From Developing Countries. Journal of Economics Finance and Accounting, 5(4), 331-338.
Lian, C., Ma, Y., & Wang, C. (2019). Low interest rates and risk-taking: Evidence from individual investment decisions. The Review of Financial Studies, 32(6), 2107-2148.
Liu, Y., Huang, Z., Jiang, L., & Messier Jr, W. F. (2020). Are investors warned by disclosure of conflicts of interest? The moderating effect of investment horizon. The Accounting Review, 95(6), 291-310.
Nicolescu, L., & Tudorache, F. G. (2020). Investment behaviour in mutual funds: is it a knowledge-based decision?. Kybernetes, 50(10), 2726-2752.
PH, H., & Uchil, R. (2020). Influence of investor sentiment and its antecedent on investment decision-making using partial least square technique. Management Research Review, 43(11), 1441-1459.
Pikulina, E., Renneboog, L., & Tobler, P. N. (2017). Overconfidence and investment: An experimental approach. Journal of Corporate Finance, 43, 175-192.
Qiying, W. (2020). Empirical Research on the Investment Performance of Information and Communication Technology in China. International Journal of Economics and Finance, 12(2), 1-94.
Rabbani, A., Grable, J. E., Woodyard, A., & Yao, Z. (2018). Describing investor profiles: A test of the associations among financial knowledge, confidence, and help and information source. Financial Services Review, 27(3).
Rahman, M., & Gan, S. S. (2020). Generation Y investment decision: an analysis using behavioural factors. Managerial Finance.
Saurav, A., Kusek, P., & Albertson, M. (2021). World Bank Investor Confidence Survey.
World Bank. (2020). Global Investment Competitiveness Report 2019/2020: Rebuilding Investor Confidence in Times of Uncertainty. The World Bank.
Yao, Z., & Rabbani, A. G. (2021). Association between investment risk tolerance and portfolio risk: The role of confidence level. Journal of Behavioral and Experimental Finance, 30, 100482.
Published
2023-03-01
How to Cite
ABDUL MANAN, Farah Nadirah et al.
The Influence Factors of Young People in Making Investment Decisions.
International Journal of Business and Technology Management, [S.l.], v. 5, n. 1, p. 140-145, mar. 2023.
ISSN 2682-7646.
Available at: <https://myjms.mohe.gov.my/index.php/ijbtm/article/view/21646>. Date accessed: 04 dec. 2024.
Section
Articles
