Determinants influencing investment decisions of individual investors: The case of the developing economy
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Thi Minh Phuong Nguyen 
, Nguyen Thi Mai Anh , Manh Dung Tran , Quynh Lien Le , Duc Nam Nguyen
This work is licensed under a Creative Commons Attribution 4.0 International License.
Abstract
In recent years, the Vietnam stock market has recorded a large number of new investors, of which individual investors account for the majority. Although it has increased both in the number of listed shares and in trading value, price fluctuations are very unpredictable over different periods, and awareness of factors influencing investment decisions is still limited, leading to a high risk of loss in investment activities (Mayfield et al., 2008). The research was carried out in order to point out the factors influencing investment decision-making among potential individual investors, thereby proposing solutions to improve investment efficiency. The study used data from 261 questionnaires with four hypotheses, using qualitative and quantitative research methods, Cronbach’s alpha, exploratory factor analysis (EFA), and regression analysis by SPSS software. As a result, four elements influencing: 1) personality traits, 2) behavioral factors, 3) company-related factors, and 4) exogenous factors have a positive impact on the stock investment decisions of individual investors. Thereby the article shows solutions from the government, the stock market, businesses, and individuals to improve investment efficiency.
Keywords: Behavioral Factors, Company-Related Factors, Exogenous Factors, Investment Decisions, Personality Traits
Authors’ individual contribution: Conceptualization — T.M.P.N. and T.M.A.N.; Methodology — M.D.T. and Q.L.L.; Validation — T.M.P.N. and T.M.A.N.; Writing — Review & Editing — T.M.P.N., T.M.A.N., M.D.T., Q.L.L., and D.N.N.; Visualization — T.M.P.N. and T.M.A.N.; Supervision — M.D.T. and Q.L.L.
Declaration of conflicting interests: The Authors declare that there is no conflict of interest.
JEL Classification: D53, E21
Received: 08.03.2023
Accepted: 22.01.2024
Published online: 24.01.2024
How to cite this paper: Nguyen, T. M. P., Nguyen, T. M. A., Tran, M. D., Le, Q. L., & Nguyen, D. N. (2024). Determinants influencing investment decisions of individual investors: The case of the developing economy. Journal of Governance & Regulation, 13(1), 135–146. https://doi.org/10.22495/jgrv13i1art12
