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How Investors Attitudes Shape Stock Market Participation in the Presence of Financial Self-Efficacy

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) w...

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Autores principales: Nadeem, Muhammad Asif, Qamar, Muhammad Ali Jibran, Nazir, Mian Sajid, Ahmad, Israr, Timoshin, Anton, Shehzad, Khurram
Formato: Online Artículo Texto
Lenguaje:English
Publicado: Frontiers Media S.A. 2020
Materias:
Acceso en línea:https://www.ncbi.nlm.nih.gov/pmc/articles/PMC7642217/
https://www.ncbi.nlm.nih.gov/pubmed/33192804
http://dx.doi.org/10.3389/fpsyg.2020.553351
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author Nadeem, Muhammad Asif
Qamar, Muhammad Ali Jibran
Nazir, Mian Sajid
Ahmad, Israr
Timoshin, Anton
Shehzad, Khurram
author_facet Nadeem, Muhammad Asif
Qamar, Muhammad Ali Jibran
Nazir, Mian Sajid
Ahmad, Israr
Timoshin, Anton
Shehzad, Khurram
author_sort Nadeem, Muhammad Asif
collection PubMed
description 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.
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spelling pubmed-76422172020-11-13 How Investors Attitudes Shape Stock Market Participation in the Presence of Financial Self-Efficacy Nadeem, Muhammad Asif Qamar, Muhammad Ali Jibran Nazir, Mian Sajid Ahmad, Israr Timoshin, Anton Shehzad, Khurram Front Psychol Psychology 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. Frontiers Media S.A. 2020-10-22 /pmc/articles/PMC7642217/ /pubmed/33192804 http://dx.doi.org/10.3389/fpsyg.2020.553351 Text en Copyright © 2020 Nadeem, Qamar, Nazir, Ahmad, Timoshin and Shehzad. http://creativecommons.org/licenses/by/4.0/ This is an open-access article distributed under the terms of the Creative Commons Attribution License (CC BY). The use, distribution or reproduction in other forums is permitted, provided the original author(s) and the copyright owner(s) are credited and that the original publication in this journal is cited, in accordance with accepted academic practice. No use, distribution or reproduction is permitted which does not comply with these terms.
spellingShingle Psychology
Nadeem, Muhammad Asif
Qamar, Muhammad Ali Jibran
Nazir, Mian Sajid
Ahmad, Israr
Timoshin, Anton
Shehzad, Khurram
How Investors Attitudes Shape Stock Market Participation in the Presence of Financial Self-Efficacy
title How Investors Attitudes Shape Stock Market Participation in the Presence of Financial Self-Efficacy
title_full How Investors Attitudes Shape Stock Market Participation in the Presence of Financial Self-Efficacy
title_fullStr How Investors Attitudes Shape Stock Market Participation in the Presence of Financial Self-Efficacy
title_full_unstemmed How Investors Attitudes Shape Stock Market Participation in the Presence of Financial Self-Efficacy
title_short How Investors Attitudes Shape Stock Market Participation in the Presence of Financial Self-Efficacy
title_sort how investors attitudes shape stock market participation in the presence of financial self-efficacy
topic Psychology
url https://www.ncbi.nlm.nih.gov/pmc/articles/PMC7642217/
https://www.ncbi.nlm.nih.gov/pubmed/33192804
http://dx.doi.org/10.3389/fpsyg.2020.553351
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