Predicting Stock Market Investment Intention and Behavior among Malaysian Working Adults Using Partial Least Squares Structural Equation Modeling

Abstract

The purpose of this study was to investigate the effects of risk tolerance, financial well-being, financial literacy, overconfidence bias, herding behavior, and social interaction on stock market investment intention and stock market participation among working adults in Malaysia. Adopting the cross-sectional design, this study collected quantitative data from a total of 349 respondents in an online survey via Google form link across various social media platforms. This study used the partial least squares structural equation modeling (PLS-SEM) approach to test the hypotheses. This study revealed the significant positive effects of risk tolerance, herding behavior, and social interaction on stock market investment intention. Stock market investment intention also had a significant effect on stock market participation. Stock market investment intention was also found to successfully mediate the relationships of risk tolerance and overconfidence bias with stock market participation. When it comes to stock market investment, the government and related authorities should focus on developing programs and policies that provide a financial safety net for investors and promote investment-related social platforms. This study linked risk tolerance, financial well-being, financial literacy, overconfidence bias, herding behavior, social interaction, stock market investment intention, and stock market participation. This is one of the few early attempts to address issues in light of the stock market investment participation among the working adults in a developing country.

A Multiple Full Mediating Effect in a PLS Hierarchical Component Model: Application to the Collaborative Public Management

“…In this way, mediating variables determine the nature of the relationship between the independent and dependent constructs. Consequently, as one of the main characteristics by adopting the PLS-SEM in order to guarantee the reliability, and convergent and discriminant validity, through the most recent statistics (HTMT), as well as to avoid multicollinearity and bias, the results obtained, applying this methodology, are robust [126,127].…”

The significance of confidence and own financial literacy: Gender Diversity in asset behaviour

“…Even as the formerly cited meta-analyses provide useful evidence of the efficacy of interventions, college degree interventions are in large part absent from any analysis. As an example, the complete evaluate by way of Yang et al (2021) includes simplest 9 research of university students with best seven of them evaluating interventions. Rosales-Pé rez et al ( 2021) reviewed education packages for children and youth and protected four university interventions that had been now not in (Jiang et al, 2020).…”

“…Lessons from the investment reliance field usually focus on one country at a time. This is the first paper that explores the role of self-confidence in defining the gender gap in controlling risky assets in a large group of 12 countries around the gender gap in many visible areas, including consumer confidence and measuring financial literacy, while risk resistance control (Yang et al, 2021). The rest of the paper is prepared as follows: segment 2 critiques the applicable literature.…”

The Moderating Role of Financial Literacy on the Effects of Subjective Norms, Product Involvement, and Perceived Behavioral Control on Invest-ment Intention of Young Investors from a Mobile Wallet App in the Philippines

“…According to the study's findings, financial literacy, perceived behavioral control, projected return, attitude, perceived trust, and perceived risk were significant predictors of students' propensity to engage in micro and small businesses. Yang et al (2021) added that risk tolerance, herding tendency, and social contact had significant beneficial effects on stock market investing intention.…”