Determinants Affecting Financial Behaviour of Investors

Abstract

In today s scenario, Investment decision behaviour has attracted attention in academia newlineespecially for those who are more proactive and focus in their investment. This study newlineprimarily intends to understand the role and influence of psychological factors along with newlinethe demographic factors on the investment intention of the investors. It purports to assess newlineand validate the applicability of the extended Theory of Planned Behaviour (TPB) in newlineexamining investor s intention, along with five additional constructs i.e. Tendency newlinetowards saving, Tendency towards investment, Financial knowledge and interest, Risk newlinetolerance, Financial self-efficacy of the investors as determinants shaping their newlineinvestment intention behaviour. Using quantitative and cross-sectional descriptive newlineresearch design, data were collected from the sample of 405 investors from Delhi/NCR newlinewith the help of a questionnaire. . The factors were identified through Exploratory Factor newlineanalysis and then validated through Confirmatory factor Analysis (CFA). The model was newlinefinally tested with structural equation modeling (AMOS-SEM). Thus, the study saliently newlinevalidates and extends TPB framework in a unique way linking these constructs-- newlineTendency towards saving, Tendency towards investment, Financial knowledge and newlineinterest, Risk tolerance, Financial self-efficacy Attitude, Subjective Norms, and newlinePerceived Behavioural Control that has been untouched in extant studies. Further, the newlinestudy employed both descriptive and inferential statistical tests analysis to arrive at the newlineoutcome findings. newlineKeywords: TPB model, Attitude, Subjective Norms, Perceived Behavioural Control Risk newlineTolerance, Financial Interest, Financial Awareness and knowledge. newline newline