Psychological biases and contextual factors as the determinants of financial satisfaction: an evidence-based study on individual investment decisions

Shukla, Kritika and Kumar, Vibhash (2024) Psychological biases and contextual factors as the determinants of financial satisfaction: an evidence-based study on individual investment decisions. Global Business and Economics Review, 31 (1). pp. 91-117. ISSN 1097-4954

[thumbnail of 2024_GBER-124504_PPV (2).pdf] Text
2024_GBER-124504_PPV (2).pdf - Published Version
Restricted to Repository staff only

Download (364kB) | Request a copy

Abstract

This research study identifies, confirms, and integrates individual investors' psychographics within the contextual environment framework and the psychological biases. The study investigates the financial satisfaction level of investors and examines its relationship with investment decision-making. We empirically examined the conceptual framework by administering constructed instruments to the investors (n = 405). For examining the structural relationships, we have used covariance-based structural equation modelling (SEM). We have found that contextual factors like brand perception of investment, economic fundamentals, and individual financial needs are positively associated with investor sentiments. Additionally, we established that psychological biases like overconfidence, hindsight, illusion of control, loss aversion, and status quo are positively associated with investors' financial satisfaction. The study's findings suggest that more financially satisfied investors will likely have higher investment volume, higher investment frequency, and lower investment duration. This study's contributions enrich the behavioural finance literature and hold practical relevance for practitioners and policymakers.

Item Type: Article
Keywords: Contextual factors | Psychological biases | Financial satisfaction | Investment decisions | Individual investors
Subjects: Social Sciences and humanities > Economics, Econometrics and Finance > Banking and Finance
Social Sciences and humanities > Economics, Econometrics and Finance > Economics
Social Sciences and humanities > Social Sciences > Social Sciences (General)
JGU School/Centre: Jindal Global Business School
Depositing User: Subhajit Bhattacharjee
Date Deposited: 05 Jul 2024 06:00
Last Modified: 15 Jul 2024 08:31
Official URL: https://doi.org/10.1504/GBER.2024.139314
URI: https://pure.jgu.edu.in/id/eprint/8049

Downloads

Downloads per month over past year

Actions (login required)

View Item
View Item