ASSESSING THE INFLUENCE OF INVESTOR PSYCHOLOGY ON INVESTMENT INTENTIONS IN THE STOCK MARKET, ZAMBIA
##plugins.themes.bootstrap3.article.main##
چکیده
This study assessed the influence of investor psychology on investment intentions in Zambia’s stock market, where the behavioural drivers of participation had remained insufficiently understood. Guided by the Theory of Planned Behaviour and Self-Determination Theory, the study employed a positivist, quantitative correlational design using survey data collected from 310 investors across major urban centres. Correlation and hierarchical multiple regression analyses revealed that all four psychological factors (attitude toward behaviour, subjective norms, perceived behavioural control and past behavioural biases) were positively and significantly associated with investment intention. Attitude toward behaviour and subjective norms emerged as the strongest positive predictors, and the full model explained 88.3% of the variance in investment intention (R² = 0.883). Perceived behavioural control and past behavioural biases were positive and significant predictors when first entered, but their unique effects became negative once subjective norms and attitude were controlled, indicating that their positive influence was largely shared with social and attitudinal factors.
The findings highlighted the critical role of social influence, confidence and prior experience in shaping investment behaviour. The study therefore recommended that policymakers, capital market regulators, financial institutions and investor educators adopt behaviourally informed investor education and awareness programmes that leverage trusted social networks, build investors’ confidence and address behavioural biases, complemented by trust-enhancing market structures, in order to stimulate broader participation in Zambia’s capital market.
##plugins.themes.bootstrap3.article.details##
نوع مقاله
این پروژه تحت مجوز بین المللی Creative Commons Attribution 4.0 می باشد.
KNUMJ uses Creative Common (CC) Attribution (BY) 4.0 International License which guarantees people (readers) and organisations unlimited rights to share, use, and build upon works published in this journal; all they need to do is to acknowledge the sources (authors).
نحوه استناد به مقاله
مراجع
Adil, M., Singh, Y., Subhan, M., Saleh Al-Faryan, M. A., & Ansari, M. S. (2023). Do trust in financial institution and financial literacy enhances intention to participate in stock market among Indian investors during COVID-19 pandemic? Cogent Economics & Finance, 11(1), 1–21. https://doi.org/10.1080/23322039.2023.2169998
Ajzen, I. (1991). The theory of planned behavior. Organizational Behavior and Human Decision Processes, 50(2), 179–211. https://doi.org/10.1016/0749-5978(91)90020-T
Akhter, T., & Hoque, M. E. (2022). Moderating Effects of Financial Cognitive Abilities and Considerations on the Attitude–Intentions Nexus of Stock Market Participation. International Journal of Financial Studies, 10(1), 1–21. https://doi.org/10.3390/ijfs10010005
Alfiana, A., Putri, A. N., Sujai, M., Amalo, F., & Hertina, D. (2025). Digital Financial Inclusion: Examining The Role of Mobile Technology in Expanding Access to Capital. Dinasti International Journal of Economics, Finance & Accounting, 6(1), 42–47. https://doi.org/10.38035/dijefa.v6i1.3806
Aljughaiman, A., & Chebbi, K. (2022). Do Investor Overconfidence and Loss Aversion Drive Saudi Firm Market Performance? The Moderating Effect of Corporate Governance. Sustainability, 14(16), 1–15. https://doi.org/10.3390/su141610072
Almansour, B. Y., Elkrghli, S., & Almansour, A. Y. (2023). Behavioural finance factors and investment decisions: A mediating role of risk perception. Cogent Economics & Finance, 11(2), 1–20. https://doi.org/10.1080/23322039.2023.2239032
Ampedu, R., Wang, X., & Mensah, R. (2025). Investigating the role of economic factors in shaping stock market trends in Ghana. Cogent Economics & Finance, 13(1), 1–22. https://doi.org/10.1080/23322039.2025.2555418
Aulia, M., Afiff, A. Z., Hati, S. R. H., & Gayatri, G. (2024). Consumers’ sustainable investing: A systematic literature review and research agenda. Cleaner and Responsible Consumption, 14, 1–25. https://doi.org/10.1016/j.clrc.2024.100215
Baba, R., Keling, W., & Yap, C. S. (2025). The effect of subjective norms, attitude and start-up capital on the entrepreneurial intention of the Indigenous people in Malaysia. Journal of Enterprising Communities: People and Places in the Global Economy, 19(4), 853–880. https://doi.org/10.1108/JEC-05-2024-0100
Banerji, J., Kundu, K., & Alam, P. A. (2023). The Impact of Behavioral Biases on Individuals’ Financial Choices under Uncertainty: An Empirical Approach. Business Perspectives and Research, 11(3), 401–424. https://doi.org/10.1177/22785337221098287
Bose, O., & Adebayo, R. O. (2024). The influences of psychological factors on investors decision making in the South African derivative market. International Journal of Research in Business and Social Science (2147- 4478), 13(1), 267–278. https://doi.org/10.20525/ijrbs.v13i1.2877
Bradley, W., & Fry, C. (2024). Gender and entrepreneurial intention in low-income countries: the relative roles played by anticipated financial returns versus perceived barriers for university students in Sierra Leone. International Journal of Entrepreneurial Behavior & Research, 30(7), 1750–1778. https://doi.org/10.1108/IJEBR-11-2022-0980
Chaudhary, K. (2025). Impact of Risk Perception, Overconfidence Bias and Loss Aversion on Investment Decision-Making. American Journal of Financial Technology and Innovation, 3(1), 14–22. https://doi.org/10.54536/ajfti.v3i1.4061
Chhillar, N., Sharma, K., & Arora, S. (2025). Exploring the role of digital financial literacy and personal financial behavior in shaping financial stress and well-being in the digital age. Acta Psychologica, 259, 1–18. https://doi.org/10.1016/j.actpsy.2025.105308
Chishti, M. F., Ali, F., Khan, M. R., Khan, I., Luong, N. T., & Ghouri, A. M. (2025). Understanding behavioural biases in investment decisions: empirical insights from an emerging market. Cogent Economics & Finance, 13(1), 1–20. https://doi.org/10.1080/23322039.2025.2567499
Chowdhury, T., Mahdzan, N. S., & Rahman, M. (2026). Impact of behavioural biases on stock market participation in the context of emerging markets: the moderating role of financial knowledge. South Asian Journal of Business Studies, 15(1), 100–121. https://doi.org/10.1108/SAJBS-07-2023-0250
Cohen, J. (1988). Statistical power analysis for the behavioral sciences (2nd ed.). Lawrence Erlbaum Associates.
Creswell, J. (2014). Qualitative, Quantitative, and Mixed Methods Approache.
Edeh, B. (2020). Behavioral Finance and Investors’ Stock Investments Decisions in West Africa: Evidence from the Nigerian Stock Market. Journal of Global Economics and Business, 1(3), 41–58. https://doi.org/10.31039/jgeb.v1i3.76
Enow, T. (2023). Investing in Emerging Markets: An Empirical Comparative Analysis. Journal of Accounting and Finance in Emerging Economies, 9(1), 1–12. https://doi.org/10.26710/jafee.v9i1.2560
Eshpulatov, D., Berdiev, G., & Artemenkov, A. (2025). Modeling the Determinants of Stock Market Investment Intention and Behavior Among Studying Adults: Evidence from University Students Using PLS-SEM. International Journal of Financial Studies, 13(3), 1–29. https://doi.org/10.3390/ijfs13030138
George, D., & Mallery, P. (2016). IBM SPSS Statistics 23 Step by Step. Routledge. https://doi.org/10.4324/9781315545899
Ghmari, O., Ghmari, I., Trid, S., & M’hamdi, M. (2024). Impact of behavioural finance on risk perception, psychological behaviour, and financial decisions of moroccan investors. Financial and Credit Activity Problems of Theory and Practice, 5(58), 244–263. https://doi.org/10.55643/fcaptp.5.58.2024.4451
Green, S. B. (1991). How many subjects does it take to do a regression analysis? Multivariate Behavioral Research, 26(3), 499–510.
Gupta, S. (2025). A Study on Behavioral Biases Influencing Investment Decisions Among Retail Investors in Bengaluru City. International Journal of Research and Scientific Innovation, XII(VII), 1914–1925. https://doi.org/10.51244/IJRSI.2025.120700188
Hidayati, Y., & Destiana, R. (2023). The Influence of Attitude, Subjective Norms, Perceived Behavioral Control, and Financial Literacy on Investment Intention. Return : Study of Management, Economic and Bussines, 2(7), 718–728. https://doi.org/10.57096/return.v2i7.137
Hou, H. (2025). Utility Theory Application in Decision-Making Behavior for Energy Use and Management: A Systematic Review. Energies, 18(8), 1–19. https://doi.org/10.3390/en18082125
Ibrahim, Y., & Arshad, I. (2017). Examining the impact of product involvement, subjective norm and perceived behavioral control on investment intentions of individual investors in Pakistan. Investment Management and Financial Innovations, 14(4), 181–193. https://doi.org/10.21511/imfi.14(4).2017.15
İpek, A., & Evrim, P. (2025). The relevance of behavioral biases to investment decision and performance: a meta-analytic review. Qualitative Research in Financial Markets, 1–36. https://doi.org/10.1108/QRFM-09-2024-0280
Junior, W., Hasan, S., & de Oliveira, F. (2026). A meta-analysis of technological adoption of financial services: investigating risk and trust perception effects. International Journal of Bank Marketing, 44(3), 393–421. https://doi.org/10.1108/IJBM-02-2025-0156
Kamberi, M. (2025). The types of intrinsic motivation as predictors of academic achievement: the mediating role of deep learning strategy. Cogent Education, 12(1), 1–16. https://doi.org/10.1080/2331186X.2025.2482482
Kandel, M., Basnet, B. J., & Aryal, M. (2024). Impact of Behavioral Biases on Investment Decisions. DEPAN, 6(1), 68–80. https://doi.org/10.3126/depan.v6i1.75495
Kaustia, M., Conlin, A., & Luotonen, N. (2023). What drives stock market participation? The role of institutional, traditional, and behavioral factors. Journal of Banking & Finance, 148, 1–32. https://doi.org/10.1016/j.jbankfin.2022.106743
Le, S.-T., Nguyen, T. N., & Dang, C. X. (2025). Why Do Some Join and Others Don’t? A Behavioral Exploration of Voluntary Social Insurance in Developing Countries. Sage Open, 15(4), 1–20. https://doi.org/10.1177/21582440251383689
Mahmood, F., Arshad, R., Khan, S., Afzal, A., & Bashir, M. (2024). Impact of behavioral biases on investment decisions and the moderation effect of financial literacy; an evidence of Pakistan. Acta Psychologica, 247, 1–9. https://doi.org/10.1016/j.actpsy.2024.104303
Morris, J., & Lieberman, M. (2018). Multicollinearity’s Effect on Regression Prediction Accuracy with Real Data Structures. General Linear Model Journal, 44(1), 29–34. https://doi.org/10.31523/glmj.044001.004
Mutuc, B. (2025). Exploring the Interplay of Life Attitude and Cognitive Ability in Shaping the Intention to Stock Market Participation Among Young Professionals in the Philippines. International Journal of Financial Studies, 13(4), 1–26. https://doi.org/10.3390/ijfs13040222
Mwiya, B., Wang, Y., Shikaputo, C., Kaulungombe, B., & Kayekesi, M. (2017). Predicting the Entrepreneurial Intentions of University Students: Applying the Theory of Planned Behaviour in Zambia, Africa. Open Journal of Business and Management, 05(04), 592–610. https://doi.org/10.4236/ojbm.2017.54051
Nadeem, A., Qamar, M. A. J., Nazir, M. S., Ahmad, I., Timoshin, A., & Shehzad, K. (2020). How Investors Attitudes Shape Stock Market Participation in the Presence of Financial Self-Efficacy. Frontiers in Psychology, 11, 1–17. https://doi.org/10.3389/fpsyg.2020.553351
Nair, P., Shiva, A., Yadav, N., & Tandon, P. (2023). Determinants of mobile apps adoption by retail investors for online trading in emerging financial markets. Benchmarking: An International Journal, 30(5), 1623–1648. https://doi.org/10.1108/BIJ-01-2022-0019
Natalia, E., & Sihombing, S. O. (2025). Attitude, subjective norm, perceived behavioral control, and information cascade effects on investment intention: financial literacy as antecedent to attitude. DeReMa (Development Research of Management): Jurnal Manajemen, 20(2), 111–134. https://doi.org/10.19166/derema.v20i2.10042
Ncube, M., Sibanda, M., & Matenda, F. R. (2023). COVID-19 Pandemic and Stock Performance: Evidence from the Sub-Saharan African Stock Markets. Economies, 11(3), 1–25. https://doi.org/10.3390/economies11030095
Nwoke, J. (2024). Digital Transformation in Financial Services and FinTech: Trends, Innovations and Emerging Technologies. International Journal of Finance, 9(6), 1–24. https://doi.org/10.47941/ijf.2224
Ocolișanu, A., Dobrotă, G., & Dobrotă, D. (2022). The Effects of Public Investment on Sustainable Economic Growth: Empirical Evidence from Emerging Countries in Central and Eastern Europe. Sustainability, 14(14), 1–25. https://doi.org/10.3390/su14148721
Onofrei, N., & Paşa, T. (2022). A study on how attitude, subjective norms and perceived behavioral control influence financial awareness. In ”30 Years of Inspiring Academic Economic Research – From the Transition to Market Economy to the Interlinked Crises of 21st Century” (pp. 685–698). Sciendo. https://doi.org/10.2478/9788366675261-047
Otinga, K., Obi, P., & Mugo-Waweru, F. (2024). Stock market participation puzzle: a systematic review and bibliometric analysis. Cogent Business & Management, 11(1), 1–24. https://doi.org/10.1080/23311975.2024.2396531
Pandurugan, V., & Al Shammakhi, B. N. S. (2024). Modelling the theory of planned behaviour to evaluate the investment intention of generation Z in the speculative market: stocks, Forex and cryptocurrencies. Arab Gulf Journal of Scientific Research, 42(4), 1900–1916. https://doi.org/10.1108/AGJSR-07-2023-0319
Rahadjeng, R., & Fiandari, R. (2020). The effect of attitude, subjective norms and control of behavior towards intention in share investment. Manajemen Bisnis, 10(2), 17–25. https://doi.org/10.22219/jmb.v10i2.13616
Raosoft, I. (2026). Raosoft Sample Size Calculator. http://www.raosoft.com/samplesize.html
Raut, K., Das, N., & Kumar, R. (2018). Extending the Theory of Planned Behaviour: Impact of Past Behavioural Biases on the Investment Decision of Indian Investors. Asian Journal of Business and Accounting, 11(1), 265–291. https://doi.org/10.22452/ajba.vol11no1.9
Riha, P., & Panakaje, N. (2022). Factors Influencing Stock Market Participation: A Review. International Journal of Case Studies in Business, IT, and Education, 831–861. https://doi.org/10.47992/IJCSBE.2581.6942.0236
Ryan, R., & Deci, E. (2020). Intrinsic and extrinsic motivation from a self-determination theory perspective: Definitions, theory, practices, and future directions. Contemporary Educational Psychology, 61, 101860. https://doi.org/10.1016/j.cedpsych.2020.101860
Saivasan, R., & Lokhande, M. (2022). Influence of risk propensity, behavioural biases and demographic factors on equity investors’ risk perception. Asian Journal of Economics and Banking, 6(3), 373–403. https://doi.org/10.1108/AJEB-06-2021-0074
Satsios, N., & Hadjidakis, S. (2018). Applying the Theory of Planned Behaviour (TPB) in Saving Behaviour of Pomak Households. International Journal of Financial Research, 9(2), 122–133. https://doi.org/10.5430/ijfr.v9n2p122
Shahzad, M., Jianguo, D., Jan, N., & Rasool, Y. (2024). Perceived Behavioral Factors and Individual Investor Stock Market Investment Decision: Multigroup Analysis and Major Stock Markets Perspectives. Sage Open, 14(2), 1–14. https://doi.org/10.1177/21582440241256210
Shamalime, M., & Yohane, R. (2024). Breaking Through Limits: Exploring Factors Hampering Growth in Zambia’s Capital Markets-Lusaka Securities Exchange Perspective. International Journal of Learning and Development, 14(2), 72–89. https://doi.org/10.5296/ijld.v14i2.22016
Shanbhag, P., Pai, Y., Kidiyoor, G., & Prabhu, N. (2023). Development and initial validation of a theory of planned behavior questionnaire: Assessment of purchase intentions towards products associated with CRM campaigns. Cogent Business & Management, 10(2), 1–37. https://doi.org/10.1080/23311975.2023.2229528
She, L., Rasiah, R., Weissmann, M. A., & Kaur, H. (2024). Using the Theory of Planned Behaviour to Explore Predictors of Financial Behaviour Among Working Adults in Malaysia. FIIB Business Review, 13(1), 118–135. https://doi.org/10.1177/23197145231169336
Spytska, L. (2024). The influence of psychological factors on investment decision-making: Psychological features of economic relations formation. Economics of Development, 23(3), 56–68. https://doi.org/10.57111/econ/3.2024.56
Strobl, R. (2022). Background risk, insurance and investment behaviour: Experimental evidence from Kenya. Journal of Economic Behavior & Organization, 202, 34–68. https://doi.org/10.1016/j.jebo.2022.07.010
Tian, Y. (2024). Behavioral Finance: Loss Aversion, Market Anomalies, and Prospect Theory in Financial Decision-Making. Highlights in Business, Economics and Management, 28, 276–280. https://doi.org/10.54097/h1wnk736
Utami, M., Gusni, G., Yuliani, R., & Pesakovic, G. (2025). Financial Knowledge and Social Influence on Generation Z Intention to Invest: The Mediating Role of Financial Attitude and Literacy. Media Ekonomi Dan Manajemen, 40(1), 121–147. https://doi.org/10.56444/mem.v40i1.5378
Wang, T. (2025). The impact of locus of control on financial market participation. Applied Economics Letters, 1–5. https://doi.org/10.1080/13504851.2025.2557357
Yang, M., Mamun, A. Al, Mohiuddin, M., Al-Shami, S. S. A., & Zainol, N. R. (2021). Predicting Stock Market Investment Intention and Behavior among Malaysian Working Adults Using Partial Least Squares Structural Equation Modeling. Mathematics, 9(8), 1–16. https://doi.org/10.3390/math9080873
Yuliawati, T., Nurhayati, N. S., Abdul Aziz, N. F., Nugraha, Sari, M., Purnamasari, I., & Harisandi, P. (2026). From Bias to Better Decisions: Behavioral Insights for Financial Literacy Curriculum Development in Higher Education. IJORER : International Journal of Recent Educational Research, 7(1), 303–321. https://doi.org/10.46245/ijorer.v7i1.984
Zhang, X., & Huang, C.-H. (2024). Investor characteristics, intention toward socially responsible investment (SRI), and SRI behavior in Chinese stock market: The moderating role of risk propensity. Heliyon, 10(14), 1–17. https://doi.org/10.1016/j.heliyon.2024.e34230