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How Investors Attitudes Shape Stock Market Participation in the Presence of Financial Self-Efficacy
- Source :
- Frontiers in Psychology, Vol 11 (2020), Frontiers in Psychology
- Publication Year :
- 2020
- Publisher :
- Frontiers Media SA, 2020.
-
Abstract
- The purpose of this study is to investigate how investor's money attitudes shape their stock market participation (SMP) decisions. This study followed the theory of planned behavior (TPB), and a survey was conducted to collect the responses from active investors. Structural equation modeling (SEM) was used for the analysis of proposed relationships among the constructs, and a confirmatory factor analysis (CFA) was conducted to check the interrelation of the variables and validity of the constructs. This research has concluded that investor's money attitudes are significant to affect their stock market participation decisions. Further, it was found that risk attitudes partially mediate the relationship between money attitudes and stock market participation. Moreover, financial knowledge and financial self-efficacy positively moderated the relationship between money attitudes and stock market participation. This research is one of the early attempts at studying the money attitudes of investors and introduces financial self-efficacy as a moderating construct between money attitudes and stock market participation. The sample size for this study was 250 respondents which can be increased in future research, and the same relationships can be tested by using a larger sample. Moreover, this study has used money attitudes as predictors of stock market participation. Still, many other variables, like personal value, can also be taken to investigate their influence on stock market participation.
- Subjects :
- financial knowledge
lcsh:BF1-990
Sample (statistics)
Affect (psychology)
050105 experimental psychology
Structural equation modeling
03 medical and health sciences
0302 clinical medicine
Psychology
0501 psychology and cognitive sciences
General Psychology
Original Research
Self-efficacy
Finance
financial self-efficacy
business.industry
05 social sciences
Theory of planned behavior
Confirmatory factor analysis
lcsh:Psychology
risk attitudes
stock market participation
Value (economics)
Stock market
business
030217 neurology & neurosurgery
money attitudes
Subjects
Details
- ISSN :
- 16641078
- Volume :
- 11
- Database :
- OpenAIRE
- Journal :
- Frontiers in Psychology
- Accession number :
- edsair.doi.dedup.....e08f7d317d41aa47f4d6fa99f5ebf843