Determinants of investment satisfaction among young investors in Indonesia
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Author(s)Fredella CollineLink to ORCID Index: https://orcid.org/0009-0008-2760-6228
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Toto RusmantoLink to ORCID Index: https://orcid.org/0000-0002-6600-3525
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Dezie Leonarda WarganegaraLink to ORCID Index: https://orcid.org/0000-0001-5425-3079
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Yanthi R. I. HutagaolLink to ORCID Index: https://orcid.org/0000-0001-5049-6970
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DOIhttp://dx.doi.org/10.21511/imfi.21(4).2024.19
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Article InfoVolume 21 2024, Issue #4, pp. 239-253
- 6 Views
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3 Downloads
This work is licensed under a
Creative Commons Attribution 4.0 International License
Indonesian stock market is dominated by young and relatively inexperienced traders who often depend on the recommendations of influencers or bloggers in social media. This will then make them dependent and conduct frequent trading, which also means higher transaction costs that diminish their profits and increase their risks, thus decreasing investor satisfaction. Therefore, this study aimed to examine the impact of perceived investor sophistication and social media influence on investment satisfaction mediated with perceived investment return as a mediating element. The analysis focused on young investors aged 18 to 30 who have invested in shares on the Indonesian Stock Exchange for at least one year. A quantitative method was adopted using questionnaires to collect data from 344 respondents. Furthermore, data were analyzed using Structural Equation Modeling – Partial Least Square (SEM-PLS) with SMART PLS 4.0 software. The results showed that both perceived investor sophistication and investment return significantly affected investment satisfaction with beta coefficients of 0.416 and 0.358, respectively. Perceived investor sophistication also significantly influenced perceived investment return with a beta coefficient of 0.557. Additionally, social media influence significantly affected perceived investment return with a beta coefficient of 0.103. This social media influence did not directly impact investment satisfaction but through the perceived investment return, which was further found to fully mediate the impact of social media influence on investment satisfaction. Perceived investment return also partially mediated the effect of investor sophistication on Investment Satisfaction.
- Keywords
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JEL Classification (Paper profile tab)G41, G11, G53
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References80
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Tables4
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Figures2
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- Figure 1. Research model
- Figure 2. Path diagram
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- Table 1. Demographic profile
- Table 2. Construct validity and reliability
- Table 3. R-square
- Table 4. Path coefficient and hypothesis test results
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Heejeong Shin ,
Su-Young Choi
doi: http://dx.doi.org/10.21511/imfi.19(4).2022.25
Investment Management and Financial Innovations Volume 19, 2022 Issue #4 pp. 309-326 Views: 300 Downloads: 164 TO CITE АНОТАЦІЯBuilding on a prior study that documents that stock price crashes are positively associated with firm-specific investor sentiment (hereafter, the sentiment), this study further investigates the moderating effect of foreign investors on Korea’s stock market. This study hypothesizes that foreign investors as sophisticated participants are indifferent of the significant relationship between the sentiment and the stock price crashes. For firms listed on the KSE over the period of 2011–2019, the analysis findings show that the high stock crash risk attributable to the high sentiment is attenuated for firms with high foreign ownership. However, such moderating effect of foreign ownership disappears when taking foreign investment horizon into consideration. This implies that future stock crash risk reduction under the high sentiment is due to the corporate monitoring role of foreign investors, who are targeting a long-term investment horizon. This study adds to the literature on the role of foreign investors by suggesting that foreign investors act as a rigorous monitor helpful for managing stock price, rather than a price maker who is rational under the high sentiment.
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Sangita Choudhary ,
Ripsy Bondia ,
Vibhava Srivastava ,
Pratap Chandra Biswal
doi: http://dx.doi.org/10.21511/imfi.21(4).2024.04
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