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
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