IDEAS home Printed from https://ideas.repec.org/a/ids/ijbeaf/v8y2026i1p40-65.html

Impact of emotional intelligence in investment decision making: evidence from Generation Z investors in West Bengal

Author

Listed:
  • Ayan Banerjee
  • Sreemoyee Guha Roy

Abstract

Using the Mayer-Salovey-Caruso Emotional Intelligence Test (MSCEIT), an ability-based measure, this study attempts to analyse the predictive role of Emotional Intelligence (EI) in rational investment outcomes, including risk tolerance, diversification, and goal orientations. The study investigates how EI regulates investment decision-making under uncertainty among Generation Z investors in West Bengal. A total of 293 stratified sample of Gen Z investors completed an Investment Behaviour Questionnaire (IBQ) and a 10-item financial literacy assessment. Statistical analyses, correlations, hierarchical regressions, confirmatory factor analyses (CFA), and structural equation modelling (SEM) revealed that 'Managing Emotions' is the strongest predictor of rational outcomes. It is positively associated with diversification and negatively associated with FOMO-driven trades, controlling for financial literacy and risk tolerance. Self-regulation mediates the EI investment link with strong fit indices (CFI = 0.982, RMSEA = 0.033). The subgroup analysis depicts stronger protective effects for urban and female participants.

Suggested Citation

  • Ayan Banerjee & Sreemoyee Guha Roy, 2026. "Impact of emotional intelligence in investment decision making: evidence from Generation Z investors in West Bengal," International Journal of Behavioural Accounting and Finance, Inderscience Enterprises Ltd, vol. 8(1), pages 40-65.
    • Handle: RePEc:ids:ijbeaf:v:8:y:2026:i:1:p:40-65
    as

    Download full text from publisher

    File URL: https://www.inderscience.com/link.php?id=157459
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    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:ids:ijbeaf:v:8:y:2026:i:1:p:40-65. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Sarah Parker (email available below). General contact details of provider: http://www.inderscience.com/browse/index.php?journalID=237 .

    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.