Factors That Influence Investment Decision Making Among Potential Individual Investors in Malaysia

Lubini A/P Murugan*


* Lubini A/P Murugan

Faculty of Business, Raffles University (RU), Johor Bahru, Malaysia

Email: lubyymurugan@gmail.com

 

Abstract

This study’s primary objective is to investigate the factors influencing individual investors’ decisions in
Malaysia. This study selected Malaysians as the target potential individual investors and analyzed the
decision-making of Malaysian investors using a few variables from Conventional Financial Theory and
Traditional Economic Theory. It is assumed that information structure and market factors systematically
influence individuals’ investment decisions and market outcomes. Consequently, it is essential to
examine how the five dimensions influence the overall decision-making of Malaysian investors. The
number of investment markets is progressively increasing, and investors must comprehend which
dimensions enable them to stand out and improve their decision-making. For this research, information
was gathered from 100 respondents with investment experience. PSPP was used to analyze the collected
data. A dimension, namely subjective norm, positively influence investment decision-making, while
four dimensions, namely accounting information, firm image incidence, personal financial needs, and
neutral information, have the less impact. Therefore, it is suggested that Malaysian investors employ
specific strategies to improve these elements and investment decision-making.

 

Keyword: Investment Decision, Accounting Information, Firm Image Coincidence, Personal Financial Needs, Neutral Information, Subjective Norm.

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