The impact of cognitive factors on individuals’ financial decisions

Che Mohd Salleh, Marhanum and Chowdhury, Mohammad Abdul Matin and Mohd Nasarudin, Ahmad Fawwaz and Tri Ratnasari, Ririn (2020) The impact of cognitive factors on individuals’ financial decisions. Management & Accounting Review, 19 (3). pp. 69-88. ISSN 2600-7975 E-ISSN 2550-1895

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Abstract

The objective of this paper is to examine the effect of cognitive factors which are financial knowledge, herding behaviour and financial planning towards individuals’ financial decisions. A total of 173 survey data were collected from university staff consisting of administrative and academic members. This research adopted a quantitative methodology for data collection as well as data analysis. Multiple regression analysis was used to examine the effect of cognitive factors towards the dependent variable which is financial decision. Results indicate that only two cognitive variables which are financial knowledge and financial planning have a significant effect toward financial decisions. Herding behaviour was found to insignificantly effect the individual financial decision process. Results of this research would be of significance to proof that other than external factors, internal factors which are cognitive elements are crucial in influencing individual financial decisions.

Item Type:	Article (Journal)
Uncontrolled Keywords:	Financial planning, herding behaviour, financial knowledge, financial decision, cognitive factor
Subjects:	H Social Sciences > H Social Sciences (General) H Social Sciences > HG Finance H Social Sciences > HG Finance > HG179 Personal finance H Social Sciences > HG Finance > HG3368 Islamic Banking and Finance
Kulliyyahs/Centres/Divisions/Institutes (Can select more than one option. Press CONTROL button):	Kulliyyah of Economics and Management Sciences Kulliyyah of Economics and Management Sciences > Department of Finance
Depositing User:	Dr. Marhanum Che Mohd Salleh
Date Deposited:	30 Dec 2020 21:42
Last Modified:	30 Dec 2020 21:42
URI:	http://irep.iium.edu.my/id/eprint/87396

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