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1.1 Introduction

This section examines the method of reasoning and the foundation of the investigation issue. At that point, the scientist builds up the exploration questions and the destinations of the examination dependent on the recognized issue explanation. Scientists likewise depict the significance of the investigation, the extent of the examination and the confinements of the investigation. Meaning of key terms are clarified toward the finish of this part.

1.2 Research Background

Virtually everyone makes investments. Investors today have some options to choose from to deposit their savings. Hence it becomes imperative to analyses investment process and investment management decision making in the substantially broader context (Peñaranda, 2016). Every investor has objectives, often not designed very prudently. When objectives are not clearly and consciously articulated, investors may land up making a decision which gives a suboptimal return. It is therefore wise to clarify investment objectives, to gain a clear understanding of what the portfolio is intended to accomplish. Even if an investor is unable to define investment objectives and procedures in a written Investment Policy Statement, they enhance their chances of achieving a positive result if they adopt a rational and a prudent investment approach.

An investor may have a short term or a long term horizon; the short-term effectiveness examined through the event analysis of the abnormal return for the recommended stock around the financial announcement or due to market fluctuations whereas long-term investment horizon examined through the investment value from a passive portfolio management strategy (Seetharaman, Niranjan, Patwa et al., 2017). While investing, a systematic process is needed to reduce the risk, and eliminate to the extent possible, the detrimental effect that emotion, behaviour, and excessive fees and taxes have on overall investment performance while also specifying how investment opportunities and investment managers will be identified (Pfeiffer, 2016). The risk and returns available from each of different investment avenues differ. Even if an individual does not select specific assets, such as stock, investments still happen through participation in mandatory government pension plans and employee saving programmes or the purchase of life insurance or a home, according to Tamil Selvi (2015).

It is by and large trusted that venture choices are a component of a few factors, for example, showcase qualities and individual hazard profiles, notwithstanding bookkeeping data. The aura mistake demonstrates that paying little mind to bookkeeping data, speculators are impacted by sunk cost contemplations and topsy-turvy chance inclinations for gain/misfortune circumstances. The examination discoveries by Nagy and Obenberger, (1994) which inspected factors affecting financial specialist conduct, proposed that established riches expansion criteria are essential to speculators, despite the fact that financial specialists utilize assorted criteria while picking stocks. Contemporary concerns, for example, neighborhood or global tasks, natural reputation and the association's moral stance have all the earmarks of being given just quick thought.

The proposals of business houses, singular stock representatives, relatives and associates go largely unnoticed. Numerous individual financial specialists rebate the advantages of valuation models while assessing stocks. Hussein (2007) found that expected corporate earnings, get rich quickly, stock marketability, past performance of the firm’s stock, government holdings, and the creation of the organized financial markets are the investors considerations. Dimitrios (2007) conducted a study on Investors behavior in the (ASE) and found that individual investors rely more on newspapers/media and noise in the market when making their investment decisions, while professional investors rely more on fundamental and technical analysis and less on portfolio analysis. This study intends to investigate the factors affecting individual behavior on investments among students, lecturers and supporting staffs of Universiti Malaysia Kelantan (UMK).

1.3 Problem Statement

In customary monetary hypothesis, speculators are thought to be objective riches maximizerz, following essential budgetary principles and putting together their venture techniques simply with respect to the hazard return thought as the components anticipated that would impact speculation choices (Baker et al, 1977). Customary financial hypothesis accept that individuals are balanced operators who settle on choices equitably to exploit the open doors accessible to them. Speculators consider themselves discerning and coherent. Nevertheless, with regards to contributing, their enthusiastic tendencies, instilled thought designs and mental predispositions, shading how they see the world and how they decide. The contention of this region of study was the distinctive discoveries that scientists thought of.

For example, Baker and Haslem, (1973) battled that profits, expected returns and the company's budgetary soundness are basic speculation contemplations for individual financial specialists. Potter, (1971) distinguishes six elements: profits, fast development, venture for sparing purposes, speedy benefits through exchanging, proficient speculation the executives and long haul development that influence singular financial specialists' frames of mind towards their speculation choices. Merikas et al, (2003) found that people base their stock buy choices on; change in the value record, ongoing value development in an association's stock, current financial markers. Speculation choices need to experience a careful examination of the circumstances winning dependent on various elements, anyway paying little respect to the fluctuated data accessible that legitimizes sanity and mindlessness, speculators are quick to maintain a strategic distance from vulnerabilities related with a definitive choices they participate in.

After carefully reviewing past research, researcher found that there was no research has been done to investigate investment behavior of students, lecturers and supporting staffs of tertiary education in Malaysia. Thus, it is against this background that this study sought to fill the gap by determining the factors that appear to influence the individual investment decisions, and included not only the factors investigated by previous studies and derived from prevailing behavioral finance theories, but also introduced additional factors that have been found to influence the individual behavior on investment decisions among students, lecturers and supporting staffs of University Malaysia Kelantan.

1.4 Research Questions

Research questions in this study are as follows;

i. What are the effects of demographical factor on decision making of individual in investment?

ii. What are the effects of economic factors on individual behavior in investment?

iii. What are the impacts of social factors on individual investment decision?

1.5 Research Objectives

Research objectives in this study are as follows;

i. To study the effect of demographical factor on decision making of individual investment behavior

ii. To examine the effect of economic factors on individual behavior on investment decision and;

iii. To determine the impact of social factors on individual behavior on investment decision.

1.6 Significance of the Study

This study can be used as a reference for future research. Researchers can compare the results of this study with their study to understand more about the factors affecting individual behavior on investments and the link of financial literacy to their decision-making process. Comparisons can be seen in terms of determination of research, frameworks and theories used and the use of appropriate instruments. In addition, researchers can use the results and methods of this study as a guideline and effort in improving future research. In addition, this research topic has never been conducted in Malaysian tertiary institution. As such, this study will benefit the organization in which the findings will be shared as useful knowledge to UMK to be guided in understanding the spending and investment behavior among university community.

1.7 Scope of the Study

This study focuses on the factors affecting individual behavior on investment among university community. With the approval of the university management, a total of 500 respondents were selected. The questionnaires distributed in this study were adapted from a combination of two instruments as stated in Chapter 3 of this proposal. The study only focuses on respondents among students, lecturers and supporting staffs of UMK. The selected groups are based on those who have the minimum academic qualifications, Sijil Pelajaran Malaysia (SPM) and service periods of at least 2 years and above.

1.8 Limitation of the Study

Researchers face several challenges during this study. First, the accuracy of the data is entirely dependent on the understanding and honesty of the respondents responding to the questionnaires. The data collected only based on respondents' perceptions and opinions on the subject of this study. In addition, external and internal factors such as emotional stability, stress and psychological factors and organizational environment can also affect the accuracy of respondents' responses given in the questionnaire. In addition, the results of the study cannot be generalized because the sample selection is limited. This study is conducted only in one location with samples from the same location which cannot represent the tertiary institution population as a whole.

1.9 Definition of Key Terms

1.9.1 Investment

A speculation is the present responsibility of cash for an explicit period so as to determine future installments that will repay the foreseen rate of swelling, the vulnerability of things to come installment and the time the assets are depended. In financial aspects, speculation implies the buy by a maker of physical products, for example, hardware, stock, apparatus and house, in the desire for enhancing future business. It is the usage of assets so as to build pay or creation yield later on. Be that as it may, in back, speculation is the buy of a money related item or other thing of significant worth with a desire for ideal future returns. It is the work of assets with the point of gaining salary or capital thankfulness (Pandian, 2001).

1.9.2 Financial literacy

It is characterized as the capacity to utilize learning and aptitudes to oversee money related assets viably for an actual existence time of monetary prosperity. The Organization for Economic Cooperation and Development (OECD) characterized money related proficiency as: blend of mindfulness, learning, aptitude, disposition and conduct important to settle on sound budgetary choices and at last accomplish individual monetary prosperity (Atkinson and Messy, 2012).

1.10 Summary

In conclusion, the introduction of this chapter covers the background of the variables used in this study and the statement of the problem that led to the planning of this study. The issue raised in the problem statement is an indication of the research questions and objectives of this study. The importance of the study, operational definitions are also discussed.



2.1 Introduction

Section 2 examines hypotheses and models identified with the investigation factors specifically factors influencing singular conduct on venture and budgetary proficiency in connection to speculation conduct. This part likewise examinations the writing survey led by past specialists went for giving direction to scientists to comprehend and adjust the recommendations exhibited in the past investigation as a kind of perspective to the investigation led. The discourse of the past analyst's discoveries likewise helps the specialist in building up a system of concentrate toward the finish of this section.

2.2 Factors Affecting Individual Behavior on Investment

When we analyzed applicable writing, factors affecting individual financial specialists' disposition were arranged into two gatherings, to be specific social and monetary components, by and large. Yet, late writing put accentuation on social factors by and large and conduct factors (mental predispositions and identity qualities) specifically that influence speculators' choices, as the vacillations in money related markets couldn't be clarified with the chief teachings of fund writing. Mental predispositions and identity qualities influencing speculation conduct are over hugeness, chance resistance, self-checking and social impact (Kourtidis et al., 2011). Nagy and Obenberger (1994) directed a study on deciding the hidden criteria that influence choices of individual value speculators with considerable possessions in fortune 500 firms.

As per exact proof, riches amplification criteria were discovered noteworthy among respondents while the impact of proposals of financier houses, singular stock agents, relatives and colleagues were recognized as immaterial. Kiran and Rao (2005) analyzed whether statistic and psychographic factors were compelling on hazard bearing limit of Indian financial specialists by directing an examining study. By breaking down the gathered information through multinomial strategic relapse and factor investigation (FA) of SPSS, they checked a solid connection between hazard taking frame of mind and statistic and psychographic factors. Goodfellow et al. (2009) researched institutional and singular speculators' exchanging conduct by testing for the nearness of grouping on the Polish securities exchange from July 1996 to November 2000. As per exact proof, as opposed to institutional financial specialists, singular speculators showed crowding amid market downswings and to a lesser degree likewise in market rises which suggested that singular venture choices were inclined to notion amid market pressure, while they for the most part believed their convictions and data when stock costs rose.

Bennet et al. (2011) looked to recognize different components that impact retail speculators' frame of mind towards putting resources into value securities exchanges. They connected an organized survey to retail financial specialists in Tamil Nadu, India. Gathered information were broke down through expressive insights and FA. As indicated by the test results, out of the aggregate 26 factors, it was discovered that five factors (speculators' resistance for hazard, quality of the Indian economy, media center around the share trading system, political steadiness and government approach towards business) had a high impact over retail financial specialists' frame of mind towards putting resources into value stocks. Shanmughama and Ramyab (2012) endeavored to clarify basic factors that influence singular financial specialists' conduct in setting of the hypothesis of contemplated activity (Fishbein and Ajzen, 1975) and the hypothesis of arranged conduct (Ajzen, 1985; Ajzen, 1991).

They gathered the information by applying a poll to the respondents living in Coimbatore city of Tamil Nadu State, India. By performing relapse examination, they found that social elements, to be specific social connections and media, impacted the exchanging conduct (exchanging recurrence) of individual financial specialists. Tabassum Sultana and Pardhasaradhi (2012) did a study on components affecting Indian individual value speculators' basic leadership and conduct. By performing FA, out of 40 characteristics, they recognized 10 factors which speak to financial specialists' choices in like manner. Cronbach's-alpha test was utilized to test the dependability of the 40 things, which were classified under five headings. As per first inclination and weighted mean estimation of the positions of multi-speculator study results, 42% of the financial specialists' stock buys were impacted by bookkeeping data of the organization while 37% of them were affected by close to home and money related necessities.

Whatever is left of the speculators who participated in the review were fundamentally affected by data identified with proposal of companions/peer gathering or dealer exhortation (11%), data identified with firm picture of the organization (4%) and normal or general data of the organization (4%) moderately. In his examination, Obamuyi (2013) endeavored to uncover the financial components affecting venture choices of speculators in the Nigerian capital market through an altered survey created by Al-Tamimi (2005). By utilizing autonomous t-test, investigation of change and post-hoc tests, past execution of the organization's stock, expected stock split/capital expands/reward, profit arrangement, expected corporate income and make easy money were observed to be the most compelling components on venture choices of speculators in Nigeria. When taking venture choices, non-monetary factors, for example, religions, bits of gossip, faithfulness to the organization's items/administrations, and conclusions of individuals from the family were observed to be irrelevant among financial specialists.

2.3 Financial Literacy

Financial literacy is defined as the ability to manage something related to money. According to Garman and Gappinger (2008) in Noor Azizah Shaari et al., (2013) financial literacy is defined as basic knowledge, principles, concepts and tools that enable a person to be wise in financial matters. Financial literacy is also defined as a science and art in controlling money and needs to be owned by individuals or organizations (Noraihan et al ,2013). According to Huriyatul and Yogi (2016), financial literacy is among one of the ten essentials to be possessed. Kim (2001) concludes that financial literacy is a basic knowledge of the financial aspects required by individuals to behave in modern society. The findings of Nor Syahidah Norazam and Norasmah Othman (2017) found that financial literacy was at a high level.

The findings show that there is a significant relationship between the quality of financial management education and the level of financial literacy. This means that with proper education, the level of financial literacy among students can be improved. In addition, Zuriana and Rosniyati (2012) study finds that exposure to students regarding personal financial management helps students become capable and confident individuals to manage and plan their finances. With the knowledge available, planning on finances can be done more prudently. Furthermore, the findings of Chen and Valpe (2002) find that education and experience have a significant impact on financial literacy. With proper education, financial literacy can be improved among students. Their findings also found that female students had less knowledge than male students in relation to personal finance.

This is in line with the findings of Annamaria Lusardi (2008) where financial literacy among women is lower than men. However, this is contrary to the findings of Nurul et al (2013) where their study finds that female students have higher literacy levels than men. Further, OECD in 2005 directed an examination to look at the dimension of budgetary education in 12 noteworthy nations of the world including UK, USA, European nations, Japan and Australia. Aftereffect of the investigation demonstrated that the dimension of money related proficiency for a large portion of the nations is low. Geetha and Ramesh (2011) examined speculation inclinations in Indian and the investigation demonstrated that individuals didn't know pretty much all the venture alternatives accessible to them and they need learning about securities. Samudra and Burghate (2012) likewise surveyed the speculation conduct of the white collar class families in Nagpur. They observed that Bank stores were to be the most well known instrument of speculation pursued by protection.

Little reserve funds plan, for example, PPF, Post office reserve funds are the third favored speculation road. They likewise subsidize that arrival positioned first among the components which impact the choice to put resources into a specific instrument. impact the choice to put resources into a specific instrument. Different scientists additionally considered the statistic factors that impact the speculation mindfulness and venture choices of a person. The spotlight has generally stayed on center factors, for example, age, sexual orientation, pay, conjugal status, calling, training and budgetary education or information. Results have presumed that budgetary education has wide-achieving suggestions for family funds and venture conduct. Abdeldayem (2016) examined the connection between money related education and speculation choices in the Kingdom of Bahrain. The outcomes uncovered that the budgetary proficiency dimension of the Bahraini speculators was low (38.6%) and a long way from the required dimension.

The dimension of money related proficiency dependent on the statistic variable found that ladies were commonly less monetarily proficient than men; respondents of age 41-50 were more learned than all other age gatherings, and monetary proficiency was exceptionally connected with instruction. Chaturvedi and Khare (2012) examined the Indian financial specialist's venture example and mindfulness about various speculation instruments. The outcomes found that age, training, occupation and salary dimension of the individual financial specialists influences their speculation conduct. They likewise recognized the variables which add to speculator mindfulness. Results found that occupation, training and pay level influences the mindfulness dimension of financial specialists towards different speculation roads. Sood and Medury (2012) evaluated the working grown-up's venture inclinations in Delhi, Gurgaon and Noida. They found that speculation inclinations are not influenced by age, sexual orientation, pay, conjugal status and work status.

Nga, Yong, and Sellappan (2010) examined the dimension of general proficiency and item mindfulness among youthful grown-ups considering in a private higher instructive establishment in Malaysia. They attempted to discover the impact of statistic factors on money related attention to the adolescent and in the case of concentrate a course in business influences monetary and item mindfulness among the young or not. At last they found that guys have more elevated amount of monetary mindfulness when contrasted with females and instruction level and course taken in business has an impact on general and budgetary item mindfulness. Bhushan and Medury (2013) surveyed Indian salaried person's monetary proficiency level and found that money related education level gets influenced by sex, training, salary, nature of business and work environment while it doesn't get influenced by age and geographic area.

Study result by Beal and Delpachitra (2003) which analyzed money related proficiency of Australian understudies at the University of Southern Queenslan, presumed that budgetary proficiency was not high among understudies and the primary explanation behind this was the absence of monetary training at the school level. In any case, an investigation that led for Australia and New Zealand Banking Group (ANZ) in (2003) demonstrated that Australians by and large were monetarily educated, aside from a few gatherings with specific difficulties. Those gatherings had bring down dimension of instruction, no working (or in incompetent work), with lower salary level and lower sparing rates, single and individuals at the two limits of the age profile. Lusardi and Mitchell (2007) did an investigation for the National Council on Economic Education and results demonstrated that secondary school understudies and working age grown-ups neglected to comprehend fundamental financial matters identified with loan fees, swelling and individual back. Bhushan (2014) directed an investigation to look at the connection between monetary proficiency and speculation conduct of salaried people in India.

Aftereffects of the examination inferred that money related education dimension of people influences the mindfulness and venture inclinations of salaried people towards monetary items. Consequences of the examination additionally demonstrated that respondents in high monetary proficiency gather have higher mindfulness level for every single money related item with the exception of mail station investment funds. Measurably critical distinction in mindfulness level found for bank settled stores, bank account, open provident reserve, shared assets, securities exchange ventures and bonds. Al-Tamimi and Kalli (2009) dissected the dimension of budgetary proficiency of individual speculators in UAE who put resources into the money related markets of UAE. Their outcome found that monetary proficiency of UAE financial specialists is considerably less from what is really required. They additionally discovered that there exists a huge connection between money related proficiency and speculation choices. In Ethiopia, Refera et al., (2016) estimated and depict budgetary education crosswise over statistic attributes of urban inhabitants in Addis Ababa. Consequences of the investigation uncovered that the greater part of the example found to have a moderate to large amounts of monetary proficiency, however the rest of the individuals who were with low dimension of money related proficiency requests intercession of budgetary instruction. Results likewise demonstrated that factually critical money related distinction crosswise over sex, age, dimension of instruction, work status and accessibility of supportable salary in the family units.

2.4 Theoretical/Research Framework

2.4.1 Regret-Theory

It deals with the emotional reaction people experience after realizing they've made an error in judgment. Faced with the prospect of selling a stock, investors become emotionally affected by the price at which they purchased the stock. So, they avoid selling it as a way to avoid the regret of having made a bad investment, as well as the embarrassment of reporting a loss. Regret theory can also hold true for investors who find a stock they had considered buying but did not went up in value. Some investors avoid the possibility of feeling this regret by following the conventional wisdom and buying only stocks that everyone else is buying, rationalizing their decision with "everyone else is doing it" (Pareto, 1997).

2.4.2 The Personal-Financial-Needs

Prospect theory proposes that certain outcomes are overweighted relative to uncertain outcomes and that the value functions are different for gains and losses, (Shefrin and Statman, 1985); (Weber and Camerer, 1998). Rational logic suggests that when faced with a stock with unfavorable future expectations, individuals should sell the stock regardless of their current gain or loss condition. However, prior research on sunk costs and escalation of commitment shows that people can become stuck in losing courses of action even to the point of throwing good money after bad (Arkes and Blumer 1985; Brockner 1992; Staw and Hoang 1995). Thus, individuals may prefer to hold a losing stock and gamble on the future rather than selling and taking a sure loss and may even become more committed to holding the stock.

2.4.3 Conceptual Framework

   Independent Variables                                   Dependent Variable

Figure 2.1 Conceptual Framework

2.5 Summary

Based on the theory and model discussed, the researcher can identify and choose the best method to conduct this study. Referring to previous studies, researchers are able to predict the expected outcomes for this study based on previous findings and can be compared mainly from both domestic and foreign studies. Finally, a study framework serves as a guide in exposing the relationship between the variables.



3.1 Introduction

This chapter describes the relevant aspects of the research methodology to ensure that the research can be conducted in an orderly manner as planned. In addition, the research methodology also ensures that research is carried out in the appropriate manner, the data collected is accurate and in line with the objectives set out earlier in the study. Discussion focuses on research design, population and sampling, data collection methods, construction of research instruments, pilot studies and data analysis methods.

3.2 Population and Sampling

There are two groups in the population comprising target populations and accessible populations. Target population is the entire set of individuals who want to provide an overview of the research findings. Whereas an accessible population is a population whose researchers have certain access which can be a subset of target populations (Alvi, 2016). The population is the entire set of individuals whose invention of the survey will be tested. The sample consists of individuals having general characteristics determined by the criteria set by the researcher and selected as representative of the study population (Etikan, Musa & Alkassim, 2015). For this study, researcher will conduct the interview at one of Malaysia’s public university, Universiti Malaysia Kelantan (UMK).

The selection of university as location of study is because the researcher is a student in said university and has access to the study population which helps the process of requesting the permission to carry out research at the study site. For the purposes of this study, the sample was selected based on the permission by Universiti Malaysia Kelantan where the researcher obtained the permission to conduct the study which involves the university staffs, both academic and non-academic and students. The respondents' selection was made using a purposive sampling method where all the selected samples had the characteristics that were pre-determined by the researcher. . The justification for the use of this method is that it fulfills the study criteria and facilitates faster selection process of the respondents. In this study, the participating respondents consist of students, lecturers and supporting staffs of UMK. All of the participants will be selected upon receiving their consent of participation. The researcher will send a letter of consent for involvement for each respondents prior to distributions of questionnaires. This study targeted a total of 500 respondents with the breakdown as follows;

Table 3.1

Respondents selection

Num. Status Total Respondents

1 Students 300

2 Lecturer 100

3 Supporting staffs 100

Total Respondents 500

Respondents of the study consist of students, lecturers and supporting staffs of UMK. In addition, respondents should have the minimum education qualification of Sijil Pelajaran Malaysia (SPM). In addition, the respondents' selection for lecturers and supporting staffs consists of those with at least two years of work experience at the university while students should be minimum in their first year of college.

3.3 Data Collection

In this study, there are two methods of collecting data that is the primary source collection and collection of secondary sources. Both types of data collection methods are important in conducting research to ensure that data is obtained in accordance with the objectives and objectives of the study. Among the primary resource collection methods are interviews, observations and use of questionnaires. According to Bambale (2014), the use of questionnaires collected accurate and credible data because the instructions and questions submitted in the questionnaire were the same for all respondents who were examined according to the predetermined standards. In this study, researchers use questionnaires as the main tool of data collection. The process of distribution and collection of questionnaires was done with the help of the help of researcher’s friend.

Before the distribution of the questionnaire to the respondent was conducted, the confirmation letter to conduct this study was given to the management to prove the collection of research data solely for academic purposes only. Therefore, the questionnaire used is the instrument that has been tested for its validity and proven to test the study variables. However, the findings are influenced by other factors such as the level of emotion and understanding that vary. Therefore, the researcher needs honesty of the respondents according to their perception in responding to the questionnaire given. Subsequently, the collection of secondary sources can also help researchers understand clearly about this study in addition to supporting primary sources.

Secondary sources refer to the opinions, findings and recommendations of the previous researcher. Secondary sources are resources to reassess the results found from primary source studies. There are various types of secondary sources such as articles, scientific studies, journals, case studies, websites, books and other resources. In this study, researcher uses scientific research, web site, book, journal, thesis, article and university publication report and other sources obtained from Universiti Malaysia Kelantan library as a secondary source. This source is important to help get an explanation, facts of findings, theories and models of research that can support the content of the study.

3.3.1 Instrument: Questionnaire

In this study, the researcher used a set of questionnaires that included questions about factors affecting individual behavior on investment and financial literacy of individual as research instrument. The first instrument is factor affecting individual behavior on investment that was built by Islamoglu, Apan and Ayvali (2015) to test the factor loading affecting individual behavior on investment. There are six main dimensions in this questionnaire. The second instrument is the financial literacy questionnaire to assess the level of literacy among respondents in relation to their investment behavior. This instrument was produced by Arif (2015) and modified by researcher based on the need of this research. This questionnaire is divided into three parts: Part A (Respondent Profile), Part B (Factors Affecting Individual Behavior on Investment) and Part C (Investor Behaviour on Investment) as in Table 3.2. The total number of questions is 35 questions.

Table 3.2

Content of Questionnaire

Part Item Total questions Scale of answers

A Respondents’ Profile 6 Multiple choice

B Factors Affecting Individual Behavior on Investment 19 Likert Scale

C Investor Behaviour on Investment 10 Likert Scale

Total 35 questions

3.4 Research Design

Neuman (2003) argue that the design of the study is a guideline for collecting, testing and analyzing data. The design also serves as a reference in the process of data collection and analysis to researchers to conduct research. As a result, researchers are able to conduct regular studies and systematically gather information (Marcyzk, DeMatteo & Festinger, 2005). With the design of the study, the researcher knows the steps to be taken to produce the findings that are in line with the objectives of the research. According to Bryman (2008), quantitative studies can describe the characteristics of parameters that exist in the phenomenon of a study.

In this study, researchers use quantitative methods to obtain data from constructing structured and scaled questions (Marcyzk et al., 2005). This method helps researchers to investigate more on factors affecting individual behavior on investment. The researcher used the method of collecting data through questionnaire. According to Cooper and Schindler (2003) argues that this method is very effective in obtaining large amounts of data, short periods of low cost. Furthermore, data is analyzed based on descriptive statistics and inference.

3.6 Hypothesis Statement

Hypothesis development in this study are as follows;

H1: There is a significant effect of social factors towards individual behavior on investment

H2: There is a significant effect of economic factors towards individual behavior on investment

3.7 Data Analysis

After completing the data collection process from the questionnaire, the next step involves the process of analyzing data. The returned questionnaire was then revised to ensure that all items were answered by the respondent. Feedback from questionnaires is converted into numeric form with code to facilitate quantitative analysis. After analyzing, all the numbers were re-translated in descriptive form (verse). In this study, the researchers used Statistical Package for Social Sciences (SPSS) software version 25. The data were then analysed statistically so that the results of the study were clearly visible. This statistical method also helps researchers to achieve the main objectives of this study. There are two main components in statistics i.e. descriptive statistics and inferential statistics.

3.7.1 Descriptive Analysis

To carry out the analysis, the data from the questionnaires were analyzed descriptively so that the information produced can be explained clearly and easily understood. According to (), descriptive analysis is used to describe the phenomena associated with a population of studies or to make estimates of populations with particular characteristics. In this study, data analysis for respondents' profiles such as gender, race, age, academic qualification and service period were analyzed using descriptive statistics i.e. percentage and frequency. In addition, according to Rahi (2017) states descriptive statistics is a way of data transformation that depicts basic features such as central tendency, distribution and validity including mean, standard deviation and score range. According to Neuman (2003), it is argued that the descriptive statistics produced in SPSS to understand the overall trend of data and describe survey data. Average, median, variance, standard deviation, and range are widely used in descriptive statistics. This information is used to address better information and understanding.

In this study, researcher use descriptive statistics to analyze the profile of the respondents, the most dominant factors influencing individual behavior on investment and the impact of financial literacy on investment behavior. Mean distribution, frequency and percentage to describe respondent's profile factor. While researchers use the distribution of central tendencies, the highest mean value distribution of each dimension to analyze the most dominant factors influencing individual behavior on investment and impact of financial literacy on investment behavior among respondents. Mean is the average score preference or respondent's consent. In this study, the researcher uses the mean scoring method to identify the most dominant factors in the study site. The mean score is set up to three categories, namely low, medium and high based on average results as in Table xxx.

Table 3.3

Mean Score of Respondent’s Response

Mean Score Level of Response

1.00 – 2.33 Low

2.34 – 3.67 Medium

3.68 – 5.00 High

3.8 Summary

This study is quantitative in which the researcher uses a questionnaire to obtain primary data. This study aims to investigate the factors influencing individual investment behavior among students, lecturers and supporting staffs of Universiti Malaysia Kelantan. Data analysis uses two methods of descriptive statistics.

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