IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v15y2023i5p3949-d1076200.html
   My bibliography  Save this article

Investment Intention and Decision Making: A Systematic Literature Review and Future Research Agenda

Author

Listed:
  • Norhazimah Che Hassan

    (Faculty of Economics and Management, Universiti Kebangsaan Malaysia, Bangi 43600, Selangor, Malaysia)

  • Aisyah Abdul-Rahman

    (Faculty of Economics and Management, Universiti Kebangsaan Malaysia, Bangi 43600, Selangor, Malaysia
    Institute of Islam Hadhari, Universiti Kebangsaan Malaysia, Bangi 43600, Selangor, Malaysia)

  • Syajarul Imna Mohd Amin

    (Faculty of Economics and Management, Universiti Kebangsaan Malaysia, Bangi 43600, Selangor, Malaysia)

  • Siti Ngayesah Ab Hamid

    (Faculty of Economics and Management, Universiti Kebangsaan Malaysia, Bangi 43600, Selangor, Malaysia)

Abstract

The expansion of financial markets has enabled individuals to invest in a variety of securities and financial instruments. Consequently, behavioral finance has shed light on the characteristics and psychological processes that influence the investment intentions and decisions of investors. We performed a systematic review of the recent literature on the key elements that influence the behavioral intentions and investment decisions of individual investors. In combination with bibliometric and weight analysis, this review aims to propose a comprehensive approach to present quantitative and qualitative analyses of the rising elements influencing investors’ intentions and behaviors in financial investment products. Using the Preferred Reporting Items for Systematic Reviews and Meta-Analyses (PRISMA) statement, this work comprises a review of 28 articles published in Web of Science and Scopus databases between 2016 and 2021. The findings identify six underlying themes of investor behavior determined using content: (1) personal factors, (2) social factors, (3) market information, (4) firm-specific factors, (5) product-related factors, and (6) demography. The future research agenda is highlighted based on the Theories, Constructs, Contexts, and Methods framework. The findings provide insights for both theoretical and practical application for corporations, financial institutions, and policy makers in understanding investors’ behavior so as to strengthen the financial industry and economy.

Suggested Citation

  • Norhazimah Che Hassan & Aisyah Abdul-Rahman & Syajarul Imna Mohd Amin & Siti Ngayesah Ab Hamid, 2023. "Investment Intention and Decision Making: A Systematic Literature Review and Future Research Agenda," Sustainability, MDPI, vol. 15(5), pages 1-22, February.
    • Handle: RePEc:gam:jsusta:v:15:y:2023:i:5:p:3949-:d:1076200
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/15/5/3949/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/15/5/3949/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Siti Nurasyikin Shamsuddin & Noriszura Ismail & Nur Firyal Roslan, 2022. "What We Know about Research on Life Insurance Lapse: A Bibliometric Analysis," Risks, MDPI, vol. 10(5), pages 1-19, May.
    2. Francesco Ferrati & Moreno Muffatto, 2021. "Reviewing equity investors’ funding criteria: a comprehensive classification and research agenda," Venture Capital, Taylor & Francis Journals, vol. 23(2), pages 157-178, April.
    3. Sierra-Correa, Paula Cristina & Cantera Kintz, Jaime Ricardo, 2015. "Ecosystem-based adaptation for improving coastal planning for sea-level rise: A systematic review for mangrove coasts," Marine Policy, Elsevier, vol. 51(C), pages 385-393.
    4. Saleh M. Shehata & Alaa M. Abdeljawad & Loqman A. Mazouz & Lamia Yousif Khalaf Aldossary & Maryam Y. Alsaeed & Mohamed Noureldin Sayed, 2021. "The Moderating Role of Perceived Risks in the Relationship between Financial Knowledge and the Intention to Invest in the Saudi Arabian Stock Market," IJFS, MDPI, vol. 9(1), pages 1-16, January.
    5. Raminta Pranckutė, 2021. "Web of Science (WoS) and Scopus: The Titans of Bibliographic Information in Today’s Academic World," Publications, MDPI, vol. 9(1), pages 1-59, March.
    6. Rajdeep Kumar Raut, 2020. "Past behaviour, financial literacy and investment decision-making process of individual investors," International Journal of Emerging Markets, Emerald Group Publishing Limited, vol. 15(6), pages 1243-1263, April.
    7. Marvello Yang & Abdullah Al Mamun & Muhammad Mohiuddin & Sayed Samer Ali Al-Shami & Noor Raihani Zainol, 2021. "Predicting Stock Market Investment Intention and Behavior among Malaysian Working Adults Using Partial Least Squares Structural Equation Modeling," Mathematics, MDPI, vol. 9(8), pages 1-16, April.
    8. Hayrol Azril Mohamed Shaffril & Asnarulkhadi Abu Samah & Syafila Kamarudin, 2021. "Speaking of the devil: a systematic literature review on community preparedness for earthquakes," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 108(3), pages 2393-2419, September.
    9. Miranda, Francisco Javier & Chamorro-Mera, Antonio & Rubio, Sergio, 2017. "Academic Entrepreneurship In Spanish Universities: An Analysis Of The Determinants Of Entrepreneurial Intention," European Research on Management and Business Economics (ERMBE), Academia Europea de Dirección y Economía de la Empresa (AEDEM), vol. 23(2), pages 113-122.
    10. Stephen Zamore & Kwame Ohene Djan & Ilan Alon & Bersant Hobdari, 2018. "Credit Risk Research: Review and Agenda," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 54(4), pages 811-835, March.
    11. Syed Aliya Zahera & Rohit Bansal, 2018. "Do investors exhibit behavioral biases in investment decision making? A systematic review," Qualitative Research in Financial Markets, Emerald Group Publishing Limited, vol. 10(2), pages 210-251, May.
    12. Chen, Yanyan & Mandler, Timo & Meyer-Waarden, Lars, 2021. "Three decades of research on loyalty programs: A literature review and future research agenda," Journal of Business Research, Elsevier, vol. 124(C), pages 179-197.
    13. Ajzen, Icek, 1991. "The theory of planned behavior," Organizational Behavior and Human Decision Processes, Elsevier, vol. 50(2), pages 179-211, December.
    14. Nees Jan Eck & Ludo Waltman, 2010. "Software survey: VOSviewer, a computer program for bibliometric mapping," Scientometrics, Springer;Akadémiai Kiadó, vol. 84(2), pages 523-538, August.
    15. Yanyan Chen & Timo Mandler & Lars Meyer-Waarden, 2021. "Three decades of research on loyalty programs: A literature review and future research agenda," Post-Print hal-03652856, HAL.
    16. Savor, Pavel & Wilson, Mungo, 2013. "How Much Do Investors Care About Macroeconomic Risk? Evidence from Scheduled Economic Announcements," Journal of Financial and Quantitative Analysis, Cambridge University Press, vol. 48(2), pages 343-375, April.
    17. Rajdeep Kumar Raut & Niladri Das & Ramkrishna Mishra, 2020. "Behaviour of Individual Investors in Stock Market Trading: Evidence from India," Global Business Review, International Management Institute, vol. 21(3), pages 818-833, June.
    18. Cheng-Po Lai, 2019. "Personality Traits and Stock Investment of Individuals," Sustainability, MDPI, vol. 11(19), pages 1-20, October.
    19. David Moher & Alessandro Liberati & Jennifer Tetzlaff & Douglas G Altman & The PRISMA Group, 2009. "Preferred Reporting Items for Systematic Reviews and Meta-Analyses: The PRISMA Statement," PLOS Medicine, Public Library of Science, vol. 6(7), pages 1-6, July.
    20. Alkhowaiter, Wassan Abdullah, 2020. "Digital payment and banking adoption research in Gulf countries: A systematic literature review," International Journal of Information Management, Elsevier, vol. 53(C).
    21. Jae Min Lee & Narang Park & Wookjae Heo, 2019. "Importance of Subjective Financial Knowledge and Perceived Credit Score in Payday Loan Use," IJFS, MDPI, vol. 7(3), pages 1-21, September.
    22. Adriana Dima & Alexandru-Mihai Bugheanu & Ruxandra Dinulescu & Ana-Madalina Potcovaru & Constanta Alice Stefanescu & Irinel Marin, 2022. "Exploring the Research Regarding Frugal Innovation and Business Sustainability through Bibliometric Analysis," Sustainability, MDPI, vol. 14(3), pages 1-36, January.
    23. Hayrol Azril Mohamed Shaffril & Asnarulkhadi Abu Samah & Syafila Kamarudin, 2021. "Correction to: Speaking of the devil: a systematic literature review on community preparedness for earthquakes," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 108(3), pages 2421-2421, September.
    24. Junwen Zhu & Weishu Liu, 2020. "A tale of two databases: the use of Web of Science and Scopus in academic papers," Scientometrics, Springer;Akadémiai Kiadó, vol. 123(1), pages 321-335, April.
    25. Nelson Maina Waweru & Evelyne Munyoki & Enrico Uliana, 2008. "The effects of behavioural factors in investment decision-making: a survey of institutional investors operating at the Nairobi Stock Exchange," International Journal of Business and Emerging Markets, Inderscience Enterprises Ltd, vol. 1(1), pages 24-41.
    26. Anne-Wil Harzing & Satu Alakangas, 2016. "Google Scholar, Scopus and the Web of Science: a longitudinal and cross-disciplinary comparison," Scientometrics, Springer;Akadémiai Kiadó, vol. 106(2), pages 787-804, February.
    27. Sanmugam Annamalah & Murali Raman & Govindan Marthandan & Aravindan Kalisri Logeswaran, 2019. "An Empirical Study on the Determinants of an Investor’s Decision in Unit Trust Investment," Economies, MDPI, vol. 7(3), pages 1-23, August.
    28. Tat Dat Bui & Mohd Helmi Ali & Feng Ming Tsai & Mohammad Iranmanesh & Ming-Lang Tseng & Ming K Lim, 2020. "Challenges and Trends in Sustainable Corporate Finance: A Bibliometric Systematic Review," JRFM, MDPI, vol. 13(11), pages 1-26, October.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Abu Elnasr E. Sobaih & Ibrahim A. Elshaer, 2023. "Risk-Taking, Financial Knowledge, and Risky Investment Intention: Expanding Theory of Planned Behavior Using a Moderating-Mediating Model," Mathematics, MDPI, vol. 11(2), pages 1-17, January.
    2. Dušan Nikolić & Dragan Ivanović & Lidija Ivanović, 2024. "An open-source tool for merging data from multiple citation databases," Scientometrics, Springer;Akadémiai Kiadó, vol. 129(7), pages 4573-4595, July.
    3. Ammar AL-Ashmori & Shuib Bin Basri & P. D. D. Dominic & Luiz Fernando Capretz & Amgad Muneer & Abdullateef Oluwagbemiga Balogun & Abdul Rehman Gilal & Rao Faizan Ali, 2022. "Classifications of Sustainable Factors in Blockchain Adoption: A Literature Review and Bibliometric Analysis," Sustainability, MDPI, vol. 14(9), pages 1-30, April.
    4. Ignacio Rodríguez-Rodríguez & José-Víctor Rodríguez & Niloofar Shirvanizadeh & Andrés Ortiz & Domingo-Javier Pardo-Quiles, 2021. "Applications of Artificial Intelligence, Machine Learning, Big Data and the Internet of Things to the COVID-19 Pandemic: A Scientometric Review Using Text Mining," IJERPH, MDPI, vol. 18(16), pages 1-29, August.
    5. Margarida Rodrigues & Cidália Oliveira & MárioFranco & Ana Daniel, 2024. "A Bibliometric Study About the Rural Creative Class: Proposal of a Conceptual Framework and Future Agenda," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(3), pages 15278-15303, September.
    6. Secinaro, Silvana & Calandra, Davide & Lanzalonga, Federico & Ferraris, Alberto, 2022. "Electric vehicles’ consumer behaviours: Mapping the field and providing a research agenda," Journal of Business Research, Elsevier, vol. 150(C), pages 399-416.
    7. Andrzej Lis & Agata Sudolska & Mateusz Tomanek, 2020. "Mapping Research on Sustainable Supply-Chain Management," Sustainability, MDPI, vol. 12(10), pages 1-26, May.
    8. Ma. Janice J. Gumasing & Renée Hannah A. Niro, 2023. "Antecedents of Real Estate Investment Intention among Filipino Millennials and Gen Z: An Extended Theory of Planned Behavior," Sustainability, MDPI, vol. 15(18), pages 1-35, September.
    9. Alfian Ferdiansyah Madsuha & Eko Adhi Setiawan & Nurhadi Wibowo & Muhammad Habiburrahman & Rahmat Nurcahyo & Sik Sumaedi, 2021. "Mapping 30 Years of Sustainability of Solar Energy Research in Developing Countries: Indonesia Case," Sustainability, MDPI, vol. 13(20), pages 1-21, October.
    10. Garg, Aashish & Goel, Pooja & Sharma, Anuj & Rana, Nripendra P., 2022. "As you sow, so shall you reap: Assessing drivers of socially responsible investment attitude and intention," Technological Forecasting and Social Change, Elsevier, vol. 184(C).
    11. Andrea Caputo & Mariya Kargina, 2022. "A user-friendly method to merge Scopus and Web of Science data during bibliometric analysis," Journal of Marketing Analytics, Palgrave Macmillan, vol. 10(1), pages 82-88, March.
    12. Johnson Ankrah & Ana Monteiro & Helena Madureira, 2023. "Geospatiality of sea level rise impacts and communities’ adaptation: a bibliometric analysis and systematic review," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 116(1), pages 1-31, March.
    13. Carlo Dindorf & Eva Bartaguiz & Freya Gassmann & Michael Fröhlich, 2022. "Conceptual Structure and Current Trends in Artificial Intelligence, Machine Learning, and Deep Learning Research in Sports: A Bibliometric Review," IJERPH, MDPI, vol. 20(1), pages 1-23, December.
    14. Nazreen Tabassum Chowdhury & Nurul Shahnaz Mahdzan & Mahfuzur Rahman, 2024. "Beyond Intuition: The Role of Financial Knowledge in Navigating Investments in Emerging Markets," International Journal of Economics and Financial Issues, Econjournals, vol. 14(4), pages 267-281, July.
    15. Bettina Minder & Patricia Wolf & Matthias Baldauf & Surabhi Verma, 2023. "Voice assistants in private households: a conceptual framework for future research in an interdisciplinary field," Palgrave Communications, Palgrave Macmillan, vol. 10(1), pages 1-18, December.
    16. Khlystova, Olena & Kalyuzhnova, Yelena & Belitski, Maksim, 2022. "The impact of the COVID-19 pandemic on the creative industries: A literature review and future research agenda," Journal of Business Research, Elsevier, vol. 139(C), pages 1192-1210.
    17. Adriane Cavalieri & João Reis & Marlene Amorim, 2021. "Circular Economy and Internet of Things: Mapping Science of Case Studies in Manufacturing Industry," Sustainability, MDPI, vol. 13(6), pages 1-32, March.
    18. Shome, Samik & Hassan, M. Kabir & Verma, Sushma & Panigrahi, Tushar Ranjan, 2023. "Impact investment for sustainable development: A bibliometric analysis," International Review of Economics & Finance, Elsevier, vol. 84(C), pages 770-800.
    19. Lopreite, Milena & Misuraca, Michelangelo & Puliga, Michelangelo, 2023. "An analysis of the thematic evolution of ageing and healthcare expenditure using word embedding: A scoping review of policy implications," Socio-Economic Planning Sciences, Elsevier, vol. 87(PB).
    20. Panetta, Ida Claudia & Leo, Sabrina & Delle Foglie, Andrea, 2023. "The development of digital payments – Past, present, and future – From the literature," Research in International Business and Finance, Elsevier, vol. 64(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:15:y:2023:i:5:p:3949-:d:1076200. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.