<abstract xmlns="http://www.w3.org/1999/xhtml"><p>The article deals with the psychological determinants of investment decisions made by an individual investor on the capital market. The purpose of this article is to try to assess the relationship between capital involvement and selected personality traits and how individuals perceive investments in securities of different nominal unit price. The author attempts to verify whether specific price thresholds affect respondents in a similar way as prices of goods and services to customers, in the context of capital investment. The results of the nationwide survey of 564 individual investors are based on analyses using the model of the willingness to invest in shares with a specific nominal value compared to the individual characteristics of the respondents. The results of the study indicate a significant relationship between personality traits and the tendency to choose stocks with relatively low or very high denomination (current transaction price).</p></abstract>

The article deals with the psychological determinants of investment decisions made by an individual investor on the capital market. The purpose of this article is to try to assess the relationship between capital involvement and selected personality traits and how individuals perceive investments in securities of different nominal unit price. The author attempts to verify whether specific price thresholds affect respondents in a similar way as prices of goods and services to customers, in the context of capital investment. The results of the nationwide survey of 564 individual investors are based on analyses using the model of the willingness to invest in shares with a specific nominal value compared to the individual characteristics of the respondents. The results of the study indicate a significant relationship between personality traits and the tendency to choose stocks with relatively low or very high denomination (current transaction price).

Determinants of Investment Decisions on the Capital Market

Faculty of Economics and Sociology, Corporate Finance Department

Financial Internet Quarterly

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

{"article-title":"Determinants of Investment Decisions on the Capital Market"}

The article deals with the psychological determinants of investment decisions made by an individual investor on the capital market. The purpose of this article...

Determinants of Investment Decisions on the Capital Market

Published Online: Feb 14, 2019

Page range: 1 - 8

Received: Nov 20, 2017

Accepted: Mar 26, 2018

DOI: https://doi.org/10.2478/fiqf-2018-0007

Keywords
Behavioral finance, investment, capital market, investment psychology, denomination effect

© 2018 Magdalena Jasiniak, published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Determinants of Investment Decisions on the Capital Market

Published Online: Feb 14, 2019

Page range: 1 - 8

Received: Nov 20, 2017

Accepted: Mar 26, 2018

DOI: https://doi.org/10.2478/fiqf-2018-0007

KeywordsBehavioral finance, investment, capital market, investment psychology, denomination effect

© 2018 Magdalena Jasiniak, published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Keywords
Behavioral finance, investment, capital market, investment psychology, denomination effect