Extending the Theory of Planned Behaviour: Impact of Past Behavioural Biases on the Investment Decision of Indian Investors

IF 0.8 Q4 BUSINESS, FINANCE Asian Journal of Business and Accounting Pub Date : 2018-06-28 DOI:10.22452/ajba.vol11no1.9

R. Raut, N. Das, R. Kumar

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引用次数: 42

Abstract

Manuscript type: Research paper. Research aims: This paper aims to investigate the applicability of the Theory of Planned Behaviour (TPB) in examining individuals’ behavioural intention to invest in the capital market. This study ex- tends on the TPB model by considering the role of past behavioural biases (PBB) as a factor in influencing the individuals’ behavioural investment intentions. Design/ Methodology/ Approach: This paper employs a hypothesis deductive approach. The research model is tested through structural equation modelling (SEM). Data were collected from 396 individuals in Eastern India through a survey and then analysed. Research findings: The results of this study demonstrate the applicability of the TPB in predicting the individuals’ behavioural intention to invest in the capital market. This study indicates that attitude toward behaviour, subjective norms and perceived behavioural control are significantly associated with behavioural intentions. The findings signify that the inclusion of past PBB can improve the predictive power of the model. Theoretical contributions/ Originality: This study expands on the well-established TPB model by incorporating PBB in examining behavioural intentions. It also extends the applicability of the TPB in the area of investment decision making. Practitioner/ Policy implications: The findings of this study reveal that behavioural biases are inseparable from normal human beings’ decision making. The reason is because behavioural biases can distort the individuals’ fundamental valuation of stocks. Therefore, it is imperative that fund managers incorporate this dimension as part of their risk modelling to enhance investment analysis and strategies. The outcome of this study can be used as a guideline for understanding the factors and programmes that need to be instilled to increase online stock trading among current and future investors. Research limitation: This study is limited to non-financial sectors due to measurement limitations. Keywords: Theory of Planned Behaviour, Past Behavioural Biases, Investment Decision Making. JEL Classification: G11, G02, C91

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扩展计划行为理论：过去的行为偏见对印度投资者投资决策的影响

手稿类型：研究论文。研究目的：本文旨在研究计划行为理论（TPB）在考察个人在资本市场投资的行为意向方面的适用性。本研究通过考虑过去的行为偏见（PBB）作为影响个人行为投资意向的因素，对TPB模型进行了分析。设计/方法论/方法论：本文采用了假设-演绎的方法。通过结构方程建模（SEM）对研究模型进行了验证。通过一项调查收集了印度东部396人的数据，然后进行了分析。研究结果：本研究的结果证明了TPB在预测个人在资本市场投资的行为意向方面的适用性。这项研究表明，对行为的态度、主观规范和感知的行为控制与行为意图显著相关。研究结果表明，包含过去的PBB可以提高模型的预测能力。理论贡献/独创性：本研究通过将PBB纳入行为意图的研究，扩展了公认的TPB模型。它还扩展了TPB在投资决策领域的适用性。从业者/政策含义：这项研究的结果表明，行为偏见与正常人的决策密不可分。原因是行为偏见会扭曲个人对股票的基本估值。因此，基金经理必须将这一维度作为其风险建模的一部分，以加强投资分析和策略。这项研究的结果可以作为理解当前和未来投资者中增加在线股票交易所需灌输的因素和计划的指南。研究局限性：由于计量局限性，本研究仅限于非金融部门。关键词：计划行为理论，过去的行为偏见，投资决策。JEL分类：G11、G02、C91

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来源期刊

Asian Journal of Business and Accounting BUSINESS, FINANCE-

CiteScore

2.00

自引率

11.10%

发文量

期刊介绍： An academic journal that aims to advance knowledge in the business and accounting disciplines, to narrow the gap between theory and practice, and to set direction for policy initiatives in Asia. Welcome to the Asian Journal of Business and Accounting (AJBA). AJBA is an international refereed journal, published biannually (30th June and 30th December) by the Faculty of Business and Accountancy, University of Malaya, Malaysia. AJBA aims to publish scholarly business researches that are relevant to Malaysia and the Asian region. It intends to highlight the practical implications in promoting better business decision making process and the formulation of public policy in Asia. This journal publishes theoretical, conceptual, and empirical papers within the broad areas of business and accounting in Asia. The AJBA covers a broad spectrum of the business and accounting disciplines. A suggestive (though not necessarily comprehensive) list of areas that would be included in this journal are: general management, strategic management, human resource management, organizational behaviour, labour and industrial relations, international business management, business communication, entrepreneurship, leadership, management science, operations management, production management, supply chain management, marketing management, brand management, consumer behaviour, information management, e-marketing, e-commerce, quality management, retailing, service marketing, hospitality management, hotel and tourism management, asset pricing, capital and money markets, corporate finance, derivatives markets, finance and banking, financial economics, etc.