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

Author

Listed:
  • Marvello Yang

    (Department of Management, Faculty Economic and Business, Widya Dharma University Pontianak, Kota Pontianak, Kalimantan Barat 78243, Indonesia)

  • Abdullah Al Mamun

    (Faculty of Business and Management, UCSI University, Cheras, Kuala Lumpur 56000, Malaysia)

  • Muhammad Mohiuddin

    (Faculty of Business Administration, Laval University, Quebec City, QC 2325, Canada)

  • Sayed Samer Ali Al-Shami

    (Institute of Technology Management and Entrepreneurship, Universiti Teknikal Malaysia Melaka, Durian Tunggal, Melaka 76100, Malaysia)

  • Noor Raihani Zainol

    (Faculty of Entrepreneurship and Business, Universiti Malaysia Kelantan, Pengkalan Chepa, Kota Bharu 16100, Malaysia)

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.

Suggested Citation

  • Marvello Yang & Abdullah Al Mamun & Muhammad Mohiuddin & Sayed Samer Ali Al-Shami & Noor Raihani Zainol, 2021. "Predicting Stock Market Investment Intention and Behavior among Malaysian Working Adults Using Partial Least Squares Structural Equation Modeling," Mathematics, MDPI, vol. 9(8), pages 1-16, April.
    • Handle: RePEc:gam:jmathe:v:9:y:2021:i:8:p:873-:d:536931
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    References listed on IDEAS

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    Cited by:

    1. Ma. Janice J. Gumasing & Renée Hannah A. Niro, 2023. "Antecedents of Real Estate Investment Intention among Filipino Millennials and Gen Z: An Extended Theory of Planned Behavior," Sustainability, MDPI, vol. 15(18), pages 1-35, September.
    2. Norhazimah Che Hassan & Aisyah Abdul-Rahman & Syajarul Imna Mohd Amin & Siti Ngayesah Ab Hamid, 2023. "Investment Intention and Decision Making: A Systematic Literature Review and Future Research Agenda," Sustainability, MDPI, vol. 15(5), pages 1-22, February.
    3. Nazreen Tabassum Chowdhury & Nurul Shahnaz Mahdzan & Mahfuzur Rahman, 2024. "Beyond Intuition: The Role of Financial Knowledge in Navigating Investments in Emerging Markets," International Journal of Economics and Financial Issues, Econjournals, vol. 14(4), pages 267-281, July.
    4. Shruti Singh & Anindita Chakraborty, 2024. "Role of Social Media in Investment Decision-making: A Comprehensive Review and Future Roadmap," Paradigm, , vol. 28(1), pages 45-64, June.

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