Extent of Investor Behaviour in the Decision-Making for Davao City Entrepreneurs

Ann Gloghienette Orais Perez; Victor Paul Jungco dela Cruz; Leslie Tarzona Sajulan

doi:10.21834/e-bpj.v10iSI26.6804

Authors

Ann Gloghienette Orais Perez Mapua Malayan Colleges Mindanao, ATYCB, Matina, Davao City, Philippines
Victor Paul Jungco dela Cruz University of Southeastern Philippines, CAS, Obrero, Davao City, Philippines
Leslie Tarzona Sajulan Mapua Malayan Colleges Mindanao, ATYCB, Matina, Davao City, Philippines

DOI:

https://doi.org/10.21834/e-bpj.v10iSI26.6804

Keywords:

Investor Behaviour, Decision Making, Capital Market, Entrepreneurs

Abstract

This study investigated the behavior of investors in Mintal, Davao City, Philippines, particularly in terms of psychological factors, market trends, economic indicators, and choices in decision-making. A sample of 100 entrepreneurs whose responses showed that economic indicators and the regulatory environment significantly influenced the way they invested at the mean scores of 3.210 and 3.232, respectively. A strong positive correlation between investor behavior and capital market decision-making was observed through a Pearson correlation coefficient of 0.916 (p < 0.001). It recommends promoting youth financial literacy, diversity, accessible information, and investor involvement.

References

Ahmed, Z. & Noreen, U. (2021) Role of Behavioral Determinants for Investment Decision Making. Asia-Pacific Social Science Review. Vol 21(2), pp. 48-62 DOI: https://doi.org/10.59588/2350-8329.1367

Adrian, T. and Surti J. (2022) Capital Markets Regulation Is Stronger, but Some Gaps Still Must be Closed, IMF Blog,

https://www.imf.org/en/Blogs/Articles/2022/06/29/capital-markets-regulation-is-stronger-but-some-gaps-still-must-be-closed

Baker, H.K. and Ricciardi, V. (2014). Investor Behavior: An Overview. In Investor Behavior (eds H.K. Baker and V. Ricciardi). https://doi.org/10.1002/9781118813454.ch1 DOI: https://doi.org/10.1002/9781118813454

Bordens, K. S., & Abbott, B. B. (2022). ISE Research Design and Methods: a Process Approach. New York: McGraw-Hill.

Broadstock D. C., Chan K., Cheng L. T. W., Wang X. The role of ESG performance during times of financial crisis: Evidence from COVID-19 in China. Financ Res Lett. 2021 Jan;38:101716. doi: 10.1016/j.frl.2020.101716. Epub 2020 Aug 13. PMID: 32837385; PMCID: PMC7425769. DOI: https://doi.org/10.1016/j.frl.2020.101716

Chavali, K. & Rosario, S. (2019). Influence of Gender on investment decisions of Investors in Sultanate of Oman. International Journal of Economics and Business Research. 7. 10.31559/GJEB2019.7.2.7. DOI: https://doi.org/10.31559/GJEB2019.7.2.7

Downey, L. (2024, October 3). Efficient Market Hypothesis (EMH): Definition and critique. Investopedia. https://www.investopedia.com/terms/e/efficientmarkethypothesis.asp

Faster Capital, (2024), Market Trends: Analyzing Market Trends: An Insight into Price Movements update, https://fastercapital.com/content/Market-Trends--Analyzing-Market-Trends--An-Insight-into-Price-Movements-update.html

Gokhale, G. M., & Mittal, A. (2024). Exploring the Nexus of Capital Market and Investor Behaviour: A Systematic Literature Review. International Journal of Economics and Financial Issues, 14(2), 65–76. https://doi.org/10.32479/ijefi.15638 DOI: https://doi.org/10.32479/ijefi.15638

Hayes, A. (2024, August 20). Behavioral finance: Biases, emotions and financial behavior. Investopedia. https://www.investopedia.com/terms/b/behavioralfinance.asp

Healey, J. F., Prus, S. G., & Lieflander, R. (2019). Statistics: a tool for social research. Nelson.

Huang, M., & Zhang, J. (2023). Prospect theory and individual investor behavior: Evidence from emerging stock markets. Journal of Behavioral Finance, 24(2), 124-140. https://doi.org/10.1080/15427560.2023.1894702

Kahneman, D. (2011). Thinking, Fast and Slow. Farrar, Straus, and Giroux. The Canadian Journal of Program Evaluation Vol. 26 No. 2 Pages 111–113 ISSN 0834-1516 DOI: https://doi.org/10.3138/cjpe.26.010

Kartini, K., & Nahda, K. (2021). Behavioral biases on investment decision: a case study in Indonesia. Journal of Asian Finance Economics and Business, 8(3), 1231–1240. https://doi.org/10.13106/jafeb.2021.vol8.no3.1231

Kim, H., & Lee, S. (2024). The impact of IFRS adoption and enforcement on financial reporting quality: Evidence from global markets. Journal of International Accounting, Auditing and Taxation, 43, 14-29. https://doi.org/10.1016/j.intaccaudtax.2023.100500

Lee, C. M. C. (2024). Limited or biased: Modeling sub-rational human investors in financial markets. arXiv preprint arXiv:2210.08569.

https://doi.org/10.48550/arXiv.2210.08569

Market Masters (2024), The Psychology of Market Trends: Understanding Investor Sentiment, https://www.linkedin.com/pulse/psychology-market-trends-understanding-investor-sentiment-ignec/

Marschner, P.M & Ceretta, P.S. (2021), Investor sentiment, economic uncertainty, and monetary policy in Brazil, Revista Contabilidade & Finanças, 25 June 2021, https://doi.org/10.1590/1808-057x202113220 DOI: https://doi.org/10.1590/1808-057x202113220

Nickerson, C. (2023, October 10). Prospect Theory in Psychology: Loss Aversion Bias. Simply Psychology. https://www.simplypsychology.org/prospect-theory.html

Quang, L. T., Linh, N. D., Nguyen, D. V., & Khoa, D. D. (2023). Behavioral factors influencing individual investors’ decision making in Vietnam market. Journal of Eastern European and Central Asian Research (JEECAR), 10(2), 264–280. https://doi.org/10.15549/jeecar.v10i2.1032 DOI: https://doi.org/10.15549/jeecar.v10i2.1032

Sattar, M.A, Toseef, M., & Sattar, M.F. (2020). Behavioral Finance Biases in Investment Decision Making. International Journal of Accounting, Finance and Risk Management, 5(2), 69. https://doi.org/10.11648/j.ijafrm.20200502.11 DOI: https://doi.org/10.11648/j.ijafrm.20200502.11

Schoenmaker, D., & Schramade, W. (2023). Capital Market Adaptability, Investor Behaviour, and Impact. In: Corporate Finance for Long-Term Value. Springer Texts in Business and Economics. Springer, Cham. https://doi.org/10.1007/978-3-031-35009-2_14 DOI: https://doi.org/10.1007/978-3-031-35009-2

Sitinjak, E. & Haryanti, K & Kurniasari, W. & Sasmito, Y. (2019). Investor behavior based on personality and company life cycle. Holistica. 10. 23-38.10.2478/hjbpa-2019-0013. DOI: https://doi.org/10.2478/hjbpa-2019-0013

Su, C. W., Liu, F., Qin, M., & Chnag, T. (2022). Is a consumer loan a catalyst for confidence? Economic Research-Ekonomska Istraživanja, 36(2). https://doi.org/10.1080/1331677x.2022.2142260 DOI: https://doi.org/10.1080/1331677X.2022.2142260

Sutantio, A., & Wiguna, I. P. A. (2017). Behavioral Finance as an Alternative Concept in Investor-Related Risk for Residential Projects : A Literature review. Aptech Proceeding International Seminar on Applied Technology, Science & Arts : Development of Green Agro-Industry to Support Human Life Sustainability, 3(6). https://doi.org/10.12962/j23546026.y2017i6.3295 DOI: https://doi.org/10.12962/j23546026.y2017i6.3295

Tavakol, M., & Dennick, R. (2011). Making sense of Cronbach’s alpha. International Journal of Medical Education, 2, 53–55. https://doi.org/10.5116/ijme.4dfb.8dfd DOI: https://doi.org/10.5116/ijme.4dfb.8dfd

Tversky, B. (2018). Multiple Models. In the Mind and in the World. Historical Social Research / Historische Sozialforschung. Supplement, 31, 59–65. https://www.jstor.org/stable/26533627

Twin, A. (2024, June 14). Restructuring: definition, meaning, process, and example. Investopedia. https://www.investopedia.com/terms/r/restructuring.asp