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Journal : Golden Ratio of Finance Management

Exploring Financial Behavior: A Qualitative Investigation into Psychological Factors Influencing Risk Preferences and Investment Decisions Suriyanti, S.; Mandung, Fitriani; Afiah, Nur; Irmayani, I.
Golden Ratio of Finance Management Vol. 4 No. 2 (2024): April - September
Publisher : Manunggal Halim Jaya

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.52970/grfm.v4i2.430

Abstract

This qualitative study investigates the psychological determinants influencing risk preferences and investment decisions. Grounded in phenomenology and interpretivism, the research aims to explore subjective experiences related to financial behavior. Employing purposive sampling, participants were selected based on diverse criteria. Data collection involved semi-structured interviews, participant observation, and document analysis. Thematic analysis revealed intricate interplays between personal experiences, cognitive biases, emotions, social influences, and financial literacy, shaping individuals' risk perceptions and decision-making processes. Findings underscore the multifaceted nature of financial behavior, highlighting the significance of personality traits, cognitive styles, and decision-making biases. Risk-averse individuals prioritized capital preservation, while sensation seekers pursued high-risk, high-reward investments. Moreover, individuals' self-efficacy influenced their investment strategies. Cognitive biases, such as overconfidence and loss aversion, further impacted investment decisions. The study emphasizes the importance of considering psychological factors in designing personalized financial interventions and educational programs. Future research directions include longitudinal studies, cross-cultural comparisons, and interdisciplinary approaches integrating insights from psychology, economics, and finance. This research contributes to the advancement of knowledge in behavioral finance and informs practical implications for financial advisors and policymakers, aiming to enhance individuals' financial well-being and decision-making competence.
Exploring Financial Behavior: A Qualitative Investigation into Psychological Factors Influencing Risk Preferences and Investment Decisions Suriyanti, S.; Mandung, Fitriani; Afiah, Nur; Irmayani, I.
Golden Ratio of Finance Management Vol. 4 No. 2 (2024): April - September
Publisher : Manunggal Halim Jaya

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.52970/grfm.v4i2.430

Abstract

This qualitative study investigates the psychological determinants influencing risk preferences and investment decisions. Grounded in phenomenology and interpretivism, the research aims to explore subjective experiences related to financial behavior. Employing purposive sampling, participants were selected based on diverse criteria. Data collection involved semi-structured interviews, participant observation, and document analysis. Thematic analysis revealed intricate interplays between personal experiences, cognitive biases, emotions, social influences, and financial literacy, shaping individuals' risk perceptions and decision-making processes. Findings underscore the multifaceted nature of financial behavior, highlighting the significance of personality traits, cognitive styles, and decision-making biases. Risk-averse individuals prioritized capital preservation, while sensation seekers pursued high-risk, high-reward investments. Moreover, individuals' self-efficacy influenced their investment strategies. Cognitive biases, such as overconfidence and loss aversion, further impacted investment decisions. The study emphasizes the importance of considering psychological factors in designing personalized financial interventions and educational programs. Future research directions include longitudinal studies, cross-cultural comparisons, and interdisciplinary approaches integrating insights from psychology, economics, and finance. This research contributes to the advancement of knowledge in behavioral finance and informs practical implications for financial advisors and policymakers, aiming to enhance individuals' financial well-being and decision-making competence.
Co-Authors Abdul Haris Abdul Haris Sunubi Adil, Andi Syaripa Nur Aldyta Afifah, Evi Aguatiawan, Rahmat Ahmad Ahmad Ainun Nadrah Jariyah, Andi Ana Fitriana Anandasari, Tasya Anggraeni, Indah Ayu Anggriana, Siti Anisatun Humayrah Rais Annisa, Dian Anwar, Aswar Anwar, Azwar Anwar, Rezki Amaliah Arifin, Arif Zaenal Ariya, Muhammad Arqam, Arqam Aspri, Ahmad Rizaldi Asri, Rahmatul Azis, Fajriani Azisah, Nur Azizah, Friska Rahmatika Bahrun, Sultan Adam Baiq Nikmatul Ulya Chalid, Lukman Christin Christin Dalimunthe, Muhammad Rizqan Ahsanu Daniel Happy Putra Darwis, Marina Dayu, Dian Permatasari Kusuma Dunakhir, Samirah Edi Saputra Hasibuan Erwin Owan Hermansyah Fachrul Firdaus, Muh Fachry Abda El Rahman Fakhruddin, Zulfah Fauziah Fauziah Febrianti, Andi Muzdalifah Ferdi Ferdiansyah, Lalu Ferdiansyah, Lalu Ferdi Fitriani Mandung Fitriyani, Nurleli Gunawan, Arbella Rizkia Hamzah Hamzah Hamzah, Hajrah Handayani, A. Asti Haq, Nursyam Arifa Hariany Idris Haryani, Virta Hasrati, Hasrati Hermawati Hermawati, Hermawati Hiljati, Hiljati Hiro, Handy Anggara Holiah, Iis Humayrah, Anisatun Huriyah, Andi Husnul Idris, Nur Irsan Ika Putri, Hindong Indradewa, Rhian Irham Irham Irmayani, I. Irwanti, A. Azzahra Asri Istiq'faroh, Nurul Jafar N, Muhammad Kamil Juniwati Juniwati Kadir, Amiruddin M. Ridwan Tikollah Mahmud, Basri Manase, Leonardo Mas’ud, Masdar Mauliza, Rully MS Tumanggor Muhammad Arif Muhammad Azis Muhammad Haramain Muin, Rahmawati Mujahid Mujahid, Mujahid Mukhammad Idrus Murtadho, Fawwaz Musa, Kartika Septiary Pratiwi Mustary, Emilia Muthaharah, Fitria Mutiara Putri, Mutiara N, Irmawati Nana Suryana Nasriani Nasriani Nathania Pratiwi Nuraisyiah Nurfadilah Nurfadilah Nuriman Nurlela Penampe, Marie Anne Ester Pirsya, Pirsya Prasisca, Tiara Purnomo, Bintoro Bagus Puspitasari, Feni putri, amanda Raden Mohamad Herdian Bhakti Reskiyawati, Siti Nur Rijal, Abdul Rizaldi Aspri, Ahmad Rohanah, Rohanah Rosaninda, Rosaninda Rustam, Utari Ryketeng, Masdar S, Masnawaty Safiruddin Al Baqi, Safiruddin Sahade Sahade Salsabila, Adinda Aura Sam, Andi Aliyyah Ramadhani Samaun, Siti Salina Samsinar Samsinar Samsinar Sappeami, Sappeami Saputra, Fadhli Arief Sarmila SF, Nadya Fadhilah. Sri Wahyuni Sugiati Sugiati Suliyanti Sulvinajayanti Suriyanti, S. Syska Purnama Sari, Syska Purnama Tenribali, Andi Anugrah Caezar Tjalla, Maghdalena Warka Syachbrani Wiguna Restu , Pandu Zulaita