IDEAS home Printed from https://ideas.repec.org/a/bcp/journl/v4y2020i6p435-438.html
   My bibliography  Save this article

Investment Decision Making of Institutional Investor: What is Behind It?

Author

Listed:
  • Candy

    (Faculty of Economy, Universitas Internasional Batam, Indonesia)

  • Guseriwan

    (Faculty of Economy, Universitas Internasional Batam, Indonesia)

Abstract

The purpose of this study is to analyze the relationship between financial behavior and investment decisions of institutional investors in Batam City. The importance of financial behavior and uncertainty of capital market information enables investors to use the obtained information for more significant result investment, but there are different situations to achieve the result. The study collected feedback from 80 investors from Insurance, Banking, Finance, and Securities companies using targeted sampling techniques. Data analysis used partial least squares structural equation model (PLS-SEM) by testing the inner and outer model. The result showed that financial tools and firm-level corporate governance have a significant positive effect on investment decisions. It allows financial instruments to make investment decisions through fundamental analysis, and firms with corporate governance levels can provide value to shareholders. Capital markets always reflect information and may have a positive or negative impact. The result also found that heuristic and risk a version do not affect investment decisions. It concluded that respondents tended to take rational actions when evaluating information and were not risk-averse investors.

Suggested Citation

  • Candy & Guseriwan, 2020. "Investment Decision Making of Institutional Investor: What is Behind It?," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 4(6), pages 435-438, June.
    • Handle: RePEc:bcp:journl:v:4:y:2020:i:6:p:435-438
    as

    Download full text from publisher

    File URL: https://www.rsisinternational.org/journals/ijriss/Digital-Library/volume-4-issue-6/435-438.pdf
    Download Restriction: no
    File URL: https://rsisinternational.org/virtual-library/papers/investment-decision-making-of-institutional-investor-what-is-behind-it/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Rima Al-Sager & Durga Prasad Samontaray, 2018. "Gender Wise Saudi Investors' Awareness of Corporate Governance Mechanism and Its Importance in Their Investment Decision Making – An Empirical Study," International Business Research, Canadian Center of Science and Education, vol. 11(3), pages 118-132, March.
    2. Sarika Keswani & Vippa Dhingra & Bharti Wadhwa, 2019. "Impact of Behavioral Factors in Making Investment Decisions and Performance: Study on Investors of National Stock Exchange," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 11(8), pages 1-80, August.
    3. Adeel Mumtaz & Tahir Saeed & M. Ramzan, 2018. "Factors affecting investment decision-making in Pakistan stock exchange," International Journal of Financial Engineering (IJFE), World Scientific Publishing Co. Pte. Ltd., vol. 5(04), pages 1-14, December.
    4. Qureshi, Salman Ali & Rehman, Kashif ur & Hunjra, Ahmed Imran, 2012. "Factors Affecting Investment Decision Making of Equity Fund Managers," MPRA Paper 60783, University Library of Munich, Germany.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Salam A. Alshamy, 2019. "Factors Affecting Investment Decision Making: Moderating Role of Investors Characteristics," The Journal of Social Sciences Research, Academic Research Publishing Group, vol. 5(4), pages 965-974, 04-2019.
    2. Naveeda K. Katper & Muhammad Azam & Nazima Abdul Karim & Syeda Zinnaira Zia, 2019. "Behavioral biases and investors’ decision-making: The moderating role of socio-demographic variables," International Journal of Financial Engineering (IJFE), World Scientific Publishing Co. Pte. Ltd., vol. 6(03), pages 1-15, September.
    3. Mamdouh Abdulaziz Saleh Al-Faryan, 2021. "The effect of board composition and managerial pay on Saudi firm performance," Review of Quantitative Finance and Accounting, Springer, vol. 57(2), pages 693-758, August.
    4. Zaheer Ahmed & Umara Noreen & Suresh A.L. Ramakrishnan & Dewi Fariha Binti Abdullah, 2021. "What explains the investment decision-making behaviour? The role of financial literacy and financial risk tolerance," Afro-Asian Journal of Finance and Accounting, Inderscience Enterprises Ltd, vol. 11(1), pages 1-19.
    5. Nicola Capolupo & Zuzana Virglerova & Angelo Rosa & Dario Natale Palmucci, 2024. "The relationship between biases and entrepreneurial Decision-Making. Evidence from Italian and Czech SMEs," International Entrepreneurship and Management Journal, Springer, vol. 20(4), pages 3323-3348, December.
    6. Tuğba Yalnız & Gökçe Candan, 2019. "Evaluation of Factors Affecting Investment Decision Analysis Under Uncertainty Conditions with Fuzzy DEMATEL Approach," EKOIST Journal of Econometrics and Statistics, Istanbul University, Faculty of Economics, vol. 30(0), pages 49-64, June.
    7. Etse Nkukpornu & Prince Gyimah & Linda Sakyiwaa, 2020. "Behavioural Finance and Investment Decisions: Does Behavioral Bias Matter?," International Business Research, Canadian Center of Science and Education, vol. 13(11), pages 1-65, November.
    8. Roshani Chamalka Gunathilaka & J. M. Ruwani Fernando, 2021. "Do behavioral biases differ among institutional and individual investors?," Oblik i finansi, Institute of Accounting and Finance, issue 2, pages 61-73, June.
    9. Zain UI Abideen & Zeeshan Ahmed & Huan Qiu & Yiwei Zhao, 2023. "Do Behavioral Biases Affect Investors’ Investment Decision Making? Evidence from the Pakistani Equity Market," Risks, MDPI, vol. 11(6), pages 1-32, June.
    10. Sahar Arshad & Nikhar Azhar & Sana Sajid & Seemab Latif & Rabia Latif, 2024. "Cross-Lingual News Event Correlation for Stock Market Trend Prediction," Papers 2410.00024, arXiv.org.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bcp:journl:v:4:y:2020:i:6:p:435-438. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Dr. Pawan Verma (email available below). General contact details of provider: https://rsisinternational.org/journals/ijriss/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.