A qualitative inquiry into the investment decision behaviour of the Malaysian stock market investors

The main purpose of this study was to examine the investment decision behaviour of retail investors in Malaysia. The study adopted semi-structured interviews to solicit an understanding of six retail investors on investment decision behaviour in Malaysia. Content analysis technique was used to analy...

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Main Authors:	Jaiyeoba, Haruna Babatunde, Haron, Razali
Format:	Article
Language:	English English
Published:	Emerald Group Publishing Ltd. 2016
Subjects:	HG4501 Stocks, investment, speculation
Online Access:	http://irep.iium.edu.my/51174/ http://irep.iium.edu.my/51174/ http://irep.iium.edu.my/51174/1/51174_a%20qualitative%20inquiry.pdf http://irep.iium.edu.my/51174/13/51174_%20a%20qualitative%20inquiry_SCOPUS.pdf

id	iium-51174
recordtype	eprints
spelling	iium-511742019-06-13T01:39:15Z http://irep.iium.edu.my/51174/ A qualitative inquiry into the investment decision behaviour of the Malaysian stock market investors Jaiyeoba, Haruna Babatunde Haron, Razali HG4501 Stocks, investment, speculation The main purpose of this study was to examine the investment decision behaviour of retail investors in Malaysia. The study adopted semi-structured interviews to solicit an understanding of six retail investors on investment decision behaviour in Malaysia. Content analysis technique was used to analyze the data and verbatim texts were applied in discussing the emergent themes. The findings indicate that retail investors in Malaysia are patriotic in nature and their investment decisions are based on feeling of comfort or convention rather than quantitative analysis. They rely so much on their findings rather than third party’s views for making investment decisions. They were influenced by the psychological biases as they herd on the information. Challenges are solved through experience and they believe that proper understanding of the financial and economic settings of the country can enhance better investment decision making. A more detailed investigation on the investors’ behaviour with more samples may expand our understanding of this issue. Future studies need to examine the investment decision behaviour with more samples. Firstly, it will prepare hit and run investors to be more ready to remain in the market and improve their skills on how to make sound investment decisions. Secondly, it helps the investors to know that knowledge of traditional finance theory is not sufficient to excel in stock market and hence, they need to know more about behavioural finance. Thirdly, investors are exposed to various reasons why investment decisions deviate from expected and different means of solving the challenges faced in making investment decision within the Malaysian context. Fourthly, investors are reminded that understanding the financial settings before investing is essential. Finally, policy makers in stock market are able to understand the retail investors’ behaviour. Emerald Group Publishing Ltd. 2016 Article PeerReviewed application/pdf en http://irep.iium.edu.my/51174/1/51174_a%20qualitative%20inquiry.pdf application/pdf en http://irep.iium.edu.my/51174/13/51174_%20a%20qualitative%20inquiry_SCOPUS.pdf Jaiyeoba, Haruna Babatunde and Haron, Razali (2016) A qualitative inquiry into the investment decision behaviour of the Malaysian stock market investors. Qualitative Research in Financial Markets, 8 (3). pp. 246-267. ISSN 1755-4179 http://www.emeraldinsight.com/doi/pdfplus/10.1108/QRFM-07-2015-0027
repository_type	Digital Repository
institution_category	Local University
institution	International Islamic University Malaysia
building	IIUM Repository
collection	Online Access
language	English English
topic	HG4501 Stocks, investment, speculation
spellingShingle	HG4501 Stocks, investment, speculation Jaiyeoba, Haruna Babatunde Haron, Razali A qualitative inquiry into the investment decision behaviour of the Malaysian stock market investors
description	The main purpose of this study was to examine the investment decision behaviour of retail investors in Malaysia. The study adopted semi-structured interviews to solicit an understanding of six retail investors on investment decision behaviour in Malaysia. Content analysis technique was used to analyze the data and verbatim texts were applied in discussing the emergent themes. The findings indicate that retail investors in Malaysia are patriotic in nature and their investment decisions are based on feeling of comfort or convention rather than quantitative analysis. They rely so much on their findings rather than third party’s views for making investment decisions. They were influenced by the psychological biases as they herd on the information. Challenges are solved through experience and they believe that proper understanding of the financial and economic settings of the country can enhance better investment decision making. A more detailed investigation on the investors’ behaviour with more samples may expand our understanding of this issue. Future studies need to examine the investment decision behaviour with more samples. Firstly, it will prepare hit and run investors to be more ready to remain in the market and improve their skills on how to make sound investment decisions. Secondly, it helps the investors to know that knowledge of traditional finance theory is not sufficient to excel in stock market and hence, they need to know more about behavioural finance. Thirdly, investors are exposed to various reasons why investment decisions deviate from expected and different means of solving the challenges faced in making investment decision within the Malaysian context. Fourthly, investors are reminded that understanding the financial settings before investing is essential. Finally, policy makers in stock market are able to understand the retail investors’ behaviour.
format	Article
author	Jaiyeoba, Haruna Babatunde Haron, Razali
author_facet	Jaiyeoba, Haruna Babatunde Haron, Razali
author_sort	Jaiyeoba, Haruna Babatunde
title	A qualitative inquiry into the investment decision behaviour of the Malaysian stock market investors
title_short	A qualitative inquiry into the investment decision behaviour of the Malaysian stock market investors
title_full	A qualitative inquiry into the investment decision behaviour of the Malaysian stock market investors
title_fullStr	A qualitative inquiry into the investment decision behaviour of the Malaysian stock market investors
title_full_unstemmed	A qualitative inquiry into the investment decision behaviour of the Malaysian stock market investors
title_sort	qualitative inquiry into the investment decision behaviour of the malaysian stock market investors
publisher	Emerald Group Publishing Ltd.
publishDate	2016
url	http://irep.iium.edu.my/51174/ http://irep.iium.edu.my/51174/ http://irep.iium.edu.my/51174/1/51174_a%20qualitative%20inquiry.pdf http://irep.iium.edu.my/51174/13/51174_%20a%20qualitative%20inquiry_SCOPUS.pdf
first_indexed	2023-09-18T21:12:25Z
last_indexed	2023-09-18T21:12:25Z
_version_	1777411340845973504

A qualitative inquiry into the investment decision behaviour of the Malaysian stock market investors

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