The Impact of Emotional Finance, and Market Knowledge and Investor Protection on Investment Performance in Stock and Real Estate Markets

Irfan, Muhammad; Adeel, Raima; Malik, Muhammad Shaukat

doi:10.1177/21582440231206900

Cited by 3 publications

(2 citation statements)

References 81 publications

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“…Emotional awareness and emotional confidence lead to informed decisions. This is an indicator of the success of the activity (Irfan et al, 2023). Therefore, employees who have developed EI are more likely to achieve all financial goals and can be considered effective (Riaz and Shah, 2022).…”

Section: Discussionmentioning

confidence: 99%

“…EI is the basis of self-regulation of financial workers, ensures the financial strength of the organization (Fachrudin et al, 2022), positive dynamics of financial decisions (Bouzguenda, 2018). It is noted that EI is the basis of emotional control, which is necessary for making rational and informed investment decisions (Irfan et al, 2023).…”

Section: Introductionmentioning

confidence: 99%

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The Role of Emotional Intelligence in Making Successful Financial Decisions

BYKOVA,

ZHYLIN,

BULAVINA

et al. 2024

Theor. Pract. Res. Econom. Fields

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Emotional intelligence (EI) as the ability for self-analysis, self-motivation, and self-regulation is necessary in the process of financial activity. It ensures informed decision-making, considering consequences and perspectives. The aim is to identify the influence of emotional intelligence on the effectiveness of decision-making by financiers. The following tests were used: EQ (Emotional/Empathy Quotient) test, Melbourne Decision Making Questionnaire, the Rathus Assertiveness Schedule, the Schubert Risk Propensity Test. Statistical processing of the results included the use of descriptive analysis, ANOVA, and regression analysis. The study found that financial workers with a high level of emotional intelligence have a pronounced “vigilance” decision-making style (F=113.4, p≤0.01), high assertiveness (F=103.3, p≤0.01), and risk propensity (F=137.3, p≤0.01). It was proved that emotional intelligence explains the “vigilance” decision-making style (β=0.943, R²=0.572), risk propensity (β=0.896, R²=0.424) and explains 48% of assertiveness (β=0.945, R²=0.483). It was confirmed that emotional intelligence is a predictor of successful financial decisions, it determines high assertiveness, vigilance, and risk propensity. Such results are useful for the development of training and retraining programmes for financiers. At the same time, including the development of assertiveness and risk propensity in professional and corporate training in parallel with the development of EI will give greater chances for the success of financial decisions. The obtained results are important for the financial and economic sphere, as they prove the effectiveness of EI in decision-making. This contributes to the improvement of the system of training competitive financiers and allows to expand aspects of the study of financial success.

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Section: Discussionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

The Role of Emotional Intelligence in Making Successful Financial Decisions

BYKOVA,

ZHYLIN,

BULAVINA

et al. 2024

Theor. Pract. Res. Econom. Fields

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Strategies for effective personal finance planning

Kumar

2024

SSRN Journal

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Digital Financial Literacy and Its Impact on Financial Decision-Making of Women: Evidence from India

Mishra,

Agarwal,

Sharahiley

et al. 2024

JRFM

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Despite the increasing accessibility of digital financial instruments globally, a number of women encounter obstacles in properly using these platforms due to insufficient digital financial literacy, which profoundly affects their financial decision-making and economic empowerment. This study aims to promote digital financial literacy and Fintech adoption for women in India by examining the effects of digital financial literacy on financial decision-making while considering the mediating effect of government support and digital financial literacy. Furthermore, in this study, we analyzed the relationship between independent variables such as financial attitude (FAtt), subjective norms (SNs), perceived behavior control (PBC), digital financial literacy (DFL), and financial accessibility (FA) on the dependent variable, i.e., financial decision-making (FDM). We also explored how financial decision-making impacts women’ intention towards investment (INT). By analyzing 385 Indian women respondents using Structural Equation Modeling (SEM), this study revealed that financial attitude (FAtt) leads to higher financial decision-making (FDM), exerting moderate effects. Similarly, subjective norms (SNs), perceived behavioral control (PBC), digital financial literacy (DFL), and financial accessibility (FA) significantly lead to financial decision-making. Overall, the five predictors of financial decision-making explained around 71% of the variance. Financial decision-making exerted a significant and robust effect on women’s intention towards investment. Financial resilience significantly moderated the effects of financial decision-making on women’s intention towards investment. These findings emphasize the necessity of implementing a distinct government strategy and programs to enhance the adoption of Fintech among women living in urban and rural regions across India. This study is aligned with UN Sustainable Development Goals, especially Sustainable Development Goal (SDG) 1: No Poverty, SDG 5: Gender Equality, and SDG 8: Decent Work and Economic Growth.

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The Impact of Emotional Finance, and Market Knowledge and Investor Protection on Investment Performance in Stock and Real Estate Markets

Cited by 3 publications

References 81 publications

The Role of Emotional Intelligence in Making Successful Financial Decisions

The Role of Emotional Intelligence in Making Successful Financial Decisions

Strategies for effective personal finance planning

Digital Financial Literacy and Its Impact on Financial Decision-Making of Women: Evidence from India

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