Emotional Intelligence, Risk Aversion, Locus of Control and Risky Investment Intentions

Document Type : Original Research

Authors

Department of Accounting, Shandiz Institute of Higher Education, Mashhad, Iran

Abstract

The present study seeks to identify the three factors of emotional intelligence, risk aversion and locus of control over risky investment intentions, with the aim of assisting investors in making decisions that are more rational and examining the role of literacy and possible advice to investors to promote financial knowledge and understanding. The data were collected through a questionnaire and composed 219 individual investors. In order to achieve the objectives of the research, the method of structural equations modelling for direct hypotheses and hierarchical regression for indirect hypotheses were used. The results showed that emotional intelligence has no significant effect on risky investment intentions. In contrast, it was found that risk aversion can have a significant negative impact on risky investment intentions. It was also determined that the locus of control has no effect on risky investment intentions. The structural equations modeling is based on discover complex relationships between variables. Using this method helps to identify hidden relationships between components. Hierarchical regression method can also be useful to find the effects of variables. In this research, these two techniques have been used.

Keywords

Main Subjects


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©2022 The author(s). This is an open access article distributed under the terms of the Creative Commons Attribution (CC BY 4.0), which permits unrestricted use, distribution, and reproduction in any medium, as long as the original authors and source are cited. No permission is required from the authors or the publishers.

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