Open AccessModeling Investment Decision Through Perceived Risk
Author(s) -
Pallavi Mishra
Publication year - 2019
Publication title -
international journal of engineering and advanced technology
Language(s) - English
Resource type - Journals
ISSN - 2249-8958
DOI - 10.35940/ijeat.f1306.0986s319
Subject(s) - mediation , investment (military) , variety (cybernetics) , investment decisions , affect (linguistics) , structural equation modeling , risk perception , stock (firearms) , stock market , decision model , investment strategy , actuarial science , decision analysis , survey data collection , optimal decision , business , economics , microeconomics , psychology , behavioral economics , decision tree , computer science , perception , engineering , political science , data mining , statistics , mathematics , mathematical economics , artificial intelligence , law , horse , biology , profit (economics) , paleontology , communication , machine learning , mechanical engineering , neuroscience , politics
Investors constantly struggle to make decision based on reason while evaluating and inferring information gathered from a variety of sources for diverse investment options to reach at an optimal investment choice. They are also affected by different psychological dimensions that affect them and bias their decision. The present study intended to study the effect of few general dimensions on investment decision with the mediation effect of perceived risk by using survey data of stock market investors. The paper has employed Structural Equation Modeling and concludes that perceived risk has partial mediation effect between investment decision and determinants of investment decision.