Behavioral Financial Factors and their Impact on Investment Decisions Quality: the Mediating Role of Rationality

Authors

Mohammad Salim Elessa, Department of Accounting and Accounting Information System, Amman University College, Al-Balqa Applied University, Al-Balqa, JordanFollow
Anas Ahmed Yassin, Department of Banking and Financial Sciences, Amman University College, Al-Balqa Applied University, Al-Balqa,JordanFollow

Abstract

The study aimed to examine the impact of behavioral financial factors on investment decision quality through rationality by applying it to investment companies in Jordan. The study population include all investment companies in Jordan, the legal entity for the number of investment companies in Jordan has reached (974) existing investment companies, and because of the difficulty of accessing the entire community, a stratified random sample was drawn Proportional Stratified Random Sample includes 10 layers. (SPSS) and ( AMOS) used to analyze data . The finding showed a significant effect of the behavioral financial factors on investment decisions through rationality. The strongest effect was the expectation theory , and the weakest for the trust factor. Recommendations were concluded, the most important of which are: educating the investment decision-maker about the importance of the role of behavioral finance based on its role which plays in making the investment decision.

Recommended Citation

Salim Elessa, Mohammad and Ahmed Yassin, Anas (2023) "Behavioral Financial Factors and their Impact on Investment Decisions Quality: the Mediating Role of Rationality," Information Sciences Letters: Vol. 12 : Iss. 6 , PP -.
Available at: https://digitalcommons.aaru.edu.jo/isl/vol12/iss6/10