Determinants of Investment Decision Making among Malaysians during COVID-19 Pandemic
- July 31, 2021
- Posted by: rsispostadmin
- Categories: IJRISS, Social Science
International Journal of Research and Innovation in Social Science (IJRISS) | Volume V, Issue VII, July 2021 | ISSN 2454–6186
Determinants of Investment Decision Making among Malaysians during COVID-19 Pandemic
Lee Xue Qing, Teoh Teng Tenk, Melissa, Lee Teck Heang
HELP University, Malaysia
Abstract: Previous studies show that people tend to be irrational when making investment decisions. In addition, the impact of the COVID-19 pandemic on the global economy has been substantial and investment decision making during this period would be diverse. This research attempts to identify the determinants of investment decisions in Malaysia during the COVID-19 pandemic based on behaviour finance attributes, specifically the self-control, loss aversion, anchoring and herding. This research adopts a mixed method design. The quantitative research uses questionnaire survey to analyse the results of 213 respondents in Malaysia, whilst in the quantitative research, interviews are used to identify the responses of 10 interviewees. The results show that loss aversion and anchoring have significant influence on the investment decisions of Malaysians, while self-control and herding have no significant influence on the investment decisions of Malaysians during the current pandemic. The study provides an insight on Malaysians’ investment decision making in relation to the concept of behavioural finance during the COVID-19 pandemic and economy turmoil, which contributes positively to the national economy.
Keywords: Investment Decision Making, Behavioural Finance
I.INTRODUCTION
The success or failure of an investment depends on the investment decision made by the investor. However, there are many determinants that can affect investment decisions. Investors must make favourable investment decisions and choose the right investment strategies. Since, everyone has different thoughts and emotions when making decision, they will have different ideas of making investment decisions. Even if two investors are equally educated, they may have different views when making investment decisions.
Kahneman, Knetsch, and Thaler (1991) find that psychological factor has a direct impact on investment decisions. They believe that the introduction of behavioural finance into the emotional characteristics of investors in dec
