Investor's Behavior Regarding Investment- An Empirical Case Study

Dhingra, Rekha; Bhargava, Vidhi; Chadda, Sheetal; Dhingra, Rahul

doi:10.33601/effulgence.rdias/v15/i1/2017/39-44

Cited by 1 publication

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“…Cold cognition involves the mental process in which memories, working memory, attention level, sensory processing, phonology and the non-emotional semantics play a key role by which a person acquires knowledge about a particular subject (Sahakian 2017). Further (Bhushan 2014;Dhingra et al 2017), the information relating to investment guidesthe investors' awareness through continuous and conscious education, which helps in decision making. In addition of the above facts, (Mane 2016;Saravana kumar et al 2011) we must also give weight to the news and awareness about liquidity, diversification and the fine-framed regulation relating to investment scenarios, which ultimately have an impact on their decision.…”

Section: Cold Cognition (Cc)mentioning

confidence: 99%

The Compounding Effect of Investors’ Cognition and Risk Absorption Potential on Enhancing the Level of Interest towards Investment in the Domestic Capital Market

Behera

Nanda²,

Sahoo

et al. 2021

JRFM

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It is eminent to understand, be aware of and encourage domestic retail investors towards investment in the capital market in a developing economy such as India for tackling the situation of capital insufficiency and financial instability. Therefore, the study was purposed to find out the different dimensions of cognition that affect investment attitude and the different characteristics of risk absorption affecting the investment decision making. The study also intended to find the direct and the mediating impact of investors’ cognition directly and through risk-absorption scenarios on the level of interest on investment. The study used the causative research design and by using stratified random sampling, received 392 responses from investors with risk-absorption characteristics from four strata of Odisha (a state of India) through a self-constructed questionnaire. Factor analysis was used to find out the factor of cognition and risk absorption. Multiple linear regression was used to find out the effect of both factors of cognition and risk absorption on the intensity of purchase financial product or level of interest in investment. Mediation analysis was used to find the mediating impact showing the direct and indirect impact of cognition on interest in investment and through the factors risk absorption. The study found that the dimensions of cognition (hot, cold, social and meta) have a significant impact on the level of interest towards investment, so financial product sellers must use these dimensions and sources of cognition to bring up interest from the domestic investor to invest in the domestic capital market. It has also been found that the risk-absorption characteristics play a mediating and vital role in the relation between investors’ cognition and level of interest in investment. Therefore, it is imperative to uplift the risk-absorption capacity through different dimensions of cognition and sources of information, which can reflect in a better understanding of the market and investment scenarios.

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Section: Cold Cognition (Cc)mentioning

confidence: 99%