Does the Investor Investigate? Antecedents of Investment Decision

Abstract

This article explores the antecedents of behavioral and emotional factors: heuristic, prospect, herding, pleasure, arousal, and dominance towards Investment Decision. The study also emphasizes the influence of socio-demographic in making a Ponzi scheme investment. All these empirical phenomena are discussed by explicating a conceptual framework - “JAIKO Investment Decision Model”. The conceptual model is tested using structural equation modeling (SEM) as the primary statistical technique. The survey yielded 294 completed and valid questionnaires. Furthermore, this study explores the role of behavioral and emotional factors in the investment decision. The empirical results incorporate versatile insights of behavioral and emotional parameters to explain investment decision towards the Ponzi schemes. Implications for investors and policy makers are also addressed in this article, and suggestions made for future research.

Keywords: Behavioral & emotional factors, Investment decision, Ponzi scheme