Faiz Anwar

Type of the article: Research Article

Abstract
This study aims to examine how risk perception, perceived gain, and perceived loss influence digital investment participation intention, with loss aversion as a mediating mechanism in the context of India. Structural equation modeling was applied to survey responses from 418 digitally active investors in India, collected online between January 15, 2025 and July 12, 2025, using judgmental sampling to ensure respondents possessed prior investment exposure and were actively engaged in digital investment environments, thereby enhancing the contextual relevance of the sample. The model explains 62.4% of the variance in investment participation intention and 58.7% in loss aversion. Perceived gain positively influences intention (β = 0.279, p < 0.001), while perceived loss negatively affects it (β = −0.226, p < 0.001). Risk perception has no direct effect (β = −0.061, p = 0.226) but increases loss aversion (β = 0.111, p = 0.010). Loss aversion positively predicts intention (β = 0.564, p < 0.001). Mediation analysis confirms significant indirect effects for all predictors. The findings suggest that, within this young and digitally active Indian sample, investment intention is shaped by perceived gains, perceived losses, and loss aversion as an affective mediating mechanism in digital investment environments.