IDEAS home Printed from https://ideas.repec.org/a/ids/ijbisy/v52y2026i3p355-378.html

The main drivers of investment decision in the Malaysian Stock Exchange market: a PLS-SEM based approach

Author

Listed:
  • Amina Omrane
  • Shahab Aziz

Abstract

As movements in the stock market have a considerable influence on the economic development and individual investors' behaviours; it is critical to pinpoint the main factors that may affect investors' decisions and their readiness (predisposition) to invest in the stock market. This paper deals with three key variables, i.e., perceived expected returns, herding behaviour, and perceived trust, and aims at examining their overall impacts on investor's attitudes towards investing in the stock market. The data were collected from a total number of 250 valid questionnaires administrated to Bursa Malaysian retail investors in 2019. They were subsequently analysed via the partial least squares structural equation modelling (PLS-SEM) approach. The overall findings revealed that investors' attitude towards information search mediates the relationship between three main independent variables, (i.e., perceived expected returns, herding behaviour, and perceived trust) and their investment decision. The implications of these results assist stakeholders in recognising the factors that are essential for investors' decision to invest in the stock market.

Suggested Citation

  • Amina Omrane & Shahab Aziz, 2026. "The main drivers of investment decision in the Malaysian Stock Exchange market: a PLS-SEM based approach," International Journal of Business Information Systems, Inderscience Enterprises Ltd, vol. 52(3), pages 355-378.
    • Handle: RePEc:ids:ijbisy:v:52:y:2026:i:3:p:355-378
    as

    Download full text from publisher

    File URL: https://www.inderscience.com/link.php?id=154684
    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:ijbisy:v:52:y:2026:i:3:p:355-378. 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=172 .

    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.