The influential factors of investment decision making in malaysian publicly listed companies

Individual shareholders make investment decisions based on their main objectives, in reducing risk with high return. This study seeks to identify the influential factors of investment that affect the individual shareholders' investment decision making, specifically in the Malaysian Publicly Lis...

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Bibliographic Details
Published in:International Journal of Innovation, Creativity and Change
Main Author: 2-s2.0-85077279669
Format: Article
Language:English
Published: Primrose Hall Publishing Group 2019
Online Access:https://www.scopus.com/inward/record.uri?eid=2-s2.0-85077279669&partnerID=40&md5=b721ce1461a1cd43c0d01dae9d54df80
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Summary:Individual shareholders make investment decisions based on their main objectives, in reducing risk with high return. This study seeks to identify the influential factors of investment that affect the individual shareholders' investment decision making, specifically in the Malaysian Publicly Listed Companies (PLCs). Using quantitative measures, questionnaires were distributed to the individual shareholders during the company's Annual General Meeting (AGM). This study managed to collect 680 respondents from the survey. It was found that accounting information, personal financial needs, advocate recommendations and images of the company are the drivers that affect individual shareholders' decisions to invest in a certain PLC. Meanwhile, individual shareholders in Malaysia did not rely on corporate social responsibility (CSR) in their investment decision. The limitation of this study is its respondents were exclusively individual shareholders, while leaving out other investors. Due to the numbers of constraints, such as incurred huge costs, required human effort and time shortage, this study only managed to collect a sample from the trading services sector, industrial product sector and consumer product sector traded by individual shareholders as a representation from a group of individual shareholders' trading shares in the Malaysian PLCs. This paper provides new insight into the development of financial and non-financial factors to the investment decision making in the Malaysian Public Listed Companies (PLCs). Thus, it is recommended to analysts the implication of other factors that might be influencing investment decision making other than individual shareholders. © 2019 Primrose Hall Publishing Group.
ISSN:22011315