Evaluation of the Effect of Emotions on Investment Decision Making with Structural Equation Model
Duyguların Yatırım Kararı Üzerine Etkisinin Yapısal Eşitlik Modeli ile Değerlendirilmesi

Author : Selim AREN -& Ahmet Oğuz AKGÜNEŞ
Number of pages : 363-371

Abstract

Investment decision is the first step in an important gain or loss for all investors. All factors that influence investment decision process are also important. There are behavioral factors affect decision making bsides economic and financial factors. In this study, the effect of behavioral factors which are hope, anger, sadness and fear, are analyzed to decision making process. For this purpose, a questionnaire was applied to examine the effect of emotions on investment decisions of 440 univesity students. In this study, collected data was analyzed by using Structural Equation Model (SEM). According to analyze results, hope and sadness variables affect decision making process. The impact of these variables were same way with decision making process. Hopeful investor’s intention to invest is higher than hopeless investor. The same situation is true for the sadness variable but the coefficient is limited 0,10 which is too low.

Keywords

Behavioral Finance, Emotions, Investment Decision, Structural Equation Model (SEM)

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