Understanding the Drivers of Investment Intention: A Systematic Literature Review

Atmaya Fitra Alfathya; Sumiati; Nur Khusniyah Indrawati

doi:10.55927/ajma.v4i3.14968

Authors

Atmaya Fitra Alfathya Universitas Brawijaya
Sumiati Universitas Brawijaya
Nur Khusniyah Indrawati Universitas Brawijaya

DOI:

https://doi.org/10.55927/ajma.v4i3.14968

Keywords:

Investment Intention, Systematic Literature Review, Financial Literacy, Theory of Planned Behavior, Social Media

Abstract

The increasing accessibility of financial markets has created more opportunities for individuals to invest, yet participation rates remain low in certain regions. This study examines key factors influencing investment intentions through a systematic literature review guided by the PRISMA framework, analyzing 44 articles. The findings classify investment intention determinants into five categories: personal, psychological, company-related, social, and technological. Financial literacy, the TPB’s component, and perceived risk are the most frequently discussed and significantly impact investment intention. Additionally, social media and influencers play a crucial role in enhancing financial awareness and information dissemination, thereby encouraging individual investment intentions. The growing interest in sustainable investment also opens new opportunities for individual investments. These results have significant implications for the development of investment intention literature and offer practical guidance to policymakers and financial institutions in formulating strategies that enhance individual investment intentions.

Downloads

Download data is not yet available.

References

Addury, M. M., Nugroho, A. P., & Khalid, S. (2020). The Intention of Investing Sharia Stocks on Millennials: The Role of Sharia Financial Literacy. Ihtifaz, 3(2), 89–104. https://doi.org/https://doi.org/10.12928/ijiefb.v3i2.3170

Adhiyogo, I., Dalimunthe, Z., Triono, R. A., & Arif, H. (2022). The Intention of Individual Investors to Invest in Green Bond in Indonesia. Global Business and Management Research, Suppl. Special Issue, 14(3), 513–522. https://www.proquest.com/scholarly-journals/intention-individual-investors-invest-green-bond/docview/2825885352/se-2?accountid=46437

Adil, M., Singh, Y., & Ansari, M. S. (2022). Does financial literacy affect investor’s planned behavior as a moderator? Managerial Finance, 48(9), 1372–1390. https://doi.org/https://doi.org/10.1108/MF-03-2021-0130

Ahuja, S., & Grover, K. (2023). Excessive Use of Social Networking Sites and Intention to Invest in Stock Market among Gen Z: A Parallel Mediation Model. Journal of Content, Community and Communication, 17(9), 63–79. https://doi.org/10.31620/JCCC.06.23/06

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

Akhtar, F., & Das, N. (2019). Predictors of investment intention in Indian stock markets: Extending the Theory of planned behaviour. The International Journal of Bank Marketing, 37(1), 97–119. https://doi.org/https://doi.org/10.1108/IJBM-08-2017-0167

Al-banna, H., & Jannah, S. M. (2024). What Drives Muslim Investors to Be Sri? The Role of Religiosity. Iranian Journal of Management Studies, 17(1), 147–168. https://doi.org/https://doi.org/10.22059/ijms.2023.349029.675396

Aliedan, M. M., Alyahya, M. A., Elshaer, I. A., & Sobaih, A. E. E. (2023). Who Is Going Green? Determinants of Green Investment Intention in the Saudi Food Industry. Agriculture (Switzerland), 13(5). https://doi.org/10.3390/agriculture13051047

Anisa, & Kholid, M. N. (2022). Examining the determinants of Islamic stock investment: An empirical study of Indonesian young investors. International Journal of Research in Business and Social Science, 11(2), 207–213. https://doi.org/https://doi.org/10.20525/ijrbs.v11i2.1667

Aren, S., & Hamamci, H. N. (2020). Relationship between risk aversion, risky investment intention, investment choices: Impact of personality traits and emotion. Kybernetes, 49(11), 2651–2682. https://doi.org/https://doi.org/10.1108/K-07-2019-0455

Aren, S., & Hamamci, H. N. (2023). The effect of individual cultural values and phantasy on risky investment intention. Journal of Economic and Administrative Sciences, 39(4), 847–866. https://doi.org/https://doi.org/10.1108/JEAS-06-2021-0111

Bhatia, S., Singh, N., & Jain, H. (2021). What Explains Millennials’ Intention to Invest in the Stock Market? An Extension to the Theory of Planned Behavior. The Journal of Wealth Management Fall, 24(2), 25–47.

Bin-Nashwan, S. A., Muneeza, A., & Kunhibava, S. (2022). What motivates retail investors to invest in government-issued digital sukuk during COVID-19? Journal of Islamic Accounting and Business Research, 13(3), 393–424. https://doi.org/10.1108/JIABR-12-2020-0387

Choudhary, S., Bondia, R., Srivastava, V., & Biswal, P. C. (2024). UNCOVERING THE BITCOIN INVESTMENT BEHAVIOR: AN EMERGING MARKET STUDY. Investment Management and Financial Innovations, 21(4), 35–48. https://doi.org/10.21511/imfi.21(4).2024.04

Dewi, M. K., & Tamara, D. (2020). The Intention to Invest in Retail Bonds in Indonesia. Academic Journal of Interdisciplinary Studies, 9(5), 188–205. https://doi.org/10.36941/ajis-2020-0097

Farish, N. A. M., & Karim, N. A. (2021). A Study on the Factors Affecting the Intention to Invest in Islamic Socially Responsible Investment in Malaysia. Global Business and Management Research, 13(4), 323–330. https://www.proquest.com/scholarly-journals/study-on-factors-affecting-intention-invest/docview/2825572588/se-2?accountid=46437

Geetha, E., Matha, R., Kishore, L., & Dmello, V. J. (2023). How does risk aversion shape investors’ intentions? Evidence from the Indian corporate bond market. Investment Management & Financial Innovations, 20(4), 211–226. https://doi.org/https://doi.org/10.21511/imfi.20(4).2023.18

Gupta, S., Gupta, S., Mathew, M., & Sama, H. R. (2021). Prioritizing intentions behind investment in cryptocurrency: a fuzzy analytical framework. Journal of Economic Studies, 48(8), 1442–1459. https://doi.org/https://doi.org/10.1108/JES-06-2020-0285

Handranata, Y. W., Arief, M., Warganegara, D. L., & Hamsal, M. (2022). Does stock influencer on social media and financial well-being affect the stock market participation of the young generations during the Covid-19 pandemic? Global Business & Finance Review, 27(5), 115–128. https://doi.org/https://doi.org/10.17549/gbfr.2022.27.5.115

Handranata, Y. W., Arief, M., Warganegara, D. L., & Hamsal, M. (2023). Financial Literacy, Hassle Factor, and Stock Market Participation: Empirical Evidence from Indonesia Stock Exchange. WSEAS Transactions on Business and Economics, 20, 730–739. https://doi.org/10.37394/23207.2023.20.67

Hasan, A., Alam, S., Habib, S., & Khan, M. A. (2024). Analysis of factors affecting investors’ decision towards cryptocurrency investments in Saudia Arabia: A moderating role of fear of missing out (FOMO) on decision-making. Journal of Infrastructure, Policy and Development, 8(9). https://doi.org/10.24294/jipd.v8i9.6419

Hassan, N. C., Rahman, A. A., Amin, S. I. M., & Hamid, S. N. A. (2023). Investment Intention and Decision Making: A Systematic Literature Review and Future Research Agenda. Sustainability (Switzerland), 15(5), 1–22. https://doi.org/10.3390/su15053949

Hemdan, W., & Zhang, J. (2024). Investors' intention toward green investment: an extension of the Theory of planned behavior. International Journal of Emerging Markets. https://doi.org/10.1108/IJOEM-06-2023-0874

Ji-Xi, J. Ter, Salamzadeh, Y., & Teoh, A. P. (2021). Behavioral intention to use cryptocurrency in Malaysia: an empirical study. The Bottom Line, 34(2), 170–197. https://doi.org/https://doi.org/10.1108/BL-08-2020-0053

Khan, S. U., Khan, I. U., Khan, I., Din, S. U., & Khan, A. U. (2020). Evaluating ṣukūk investment intentions in Pakistan from a social cognitive perspective. ISRA International Journal of Islamic Finance, 12(3), 347–365. https://doi.org/https://doi.org/10.1108/IJIF-12-2019-0194

Kumar, J., Rani, M., Rani, G., & Rani, V. (2024). All are interesting to invest, I fear of missing out (FOMO): a comparative study among self-employed and salaried investors. Journal of Financial Regulation and Compliance, 32(5), 646–664. https://doi.org/10.1108/JFRC-01-2024-0010

Kurniawan, P. I. (2021). Effect of Expected Return, Self Efficacy, and Perceived Risk on Investment Intention: An Empirical Study on Accounting Master Degree in Udayana University, Bali. Journal of Accounting, Finance and Auditing Studies, 7(1), 40–55. https://doi.org/https://doi.org/10.32602/jafas.2021.002

Lai, C.-P. (2019). Personality traits and stock investment of individuals. Sustainability (Switzerland), 11(19). https://doi.org/10.3390/su11195474

Lim, T. S., Mail, R., Karim, M. R. A., Ulum, Z. K. A. B., Mifli, M., & Jaidi, J. (2020). An Investigation of Financial Investment Intention using Covariance-Based. Global Business & Finance Review, 25(2), 37–50. https://www.proquest.com/scholarly-journals/investigation-financial-investment-intention/docview/2656420980/se-2?accountid=46437

Lim, T. S., & Qi, P. C. (2023). Investigating the Antecedents of Investment Intention and the Mediating Effect of Investment Self-efficacy among Young Adults in Shandong, China. Global Business & Finance Review, 28(2), 1–16. https://doi.org/https://doi.org/10.17549/gbfr.2023.28.2.1

Marwan, S., Ismail, S., Engku Ali, E. R. A., & Mohamed Haneef, M. A. (2024). Factors influencing intention to invest in Shariah-compliant social impact bonds in Malaysia. Journal of Islamic Accounting and Business Research, 15(8), 1338–1358. https://doi.org/10.1108/JIABR-12-2022-0340

Matha, R., Geetha, E., Raghavendra, Kishore, L., & Shivaprasad, S. P. (2022). Role of big-five personality traits in predicting behavioral intention: A case of Indian corporate bond investors. Problems and Perspectives in Management, 20(4), 638–652. https://doi.org/https://doi.org/10.21511/ppm.20(4).2022.48

Misra, S., Pham, Q., Phan, H., Cristofaro, M., & Giardino, P. (2021). Examining the Intention to Invest in Cryptocurrencies: An Extended Application of the Theory of Planned Behavior on Italian Independent Investors. International Journal of Applied Behavioral Economics, 10(3), 59–79. https://doi.org/https://doi.org/10.4018/IJABE.2021070104

Moher, D., Liberati, A., Tetzlaff, J., Altman, D. G., Antes, G., Atkins, D., Barbour, V., Barrowman, N., Berlin, J. A., Clark, J., Clarke, M., Cook, D., D’Amico, R., Deeks, J. J., Devereaux, P. J., Dickersin, K., Egger, M., Ernst, E., Gøtzsche, P. C., … Tugwell, P. (2009). Preferred reporting items for systematic reviews and meta-analyses: The PRISMA statement. In PLoS Medicine (Vol. 6, Issue 7). Public Library of Science. https://doi.org/10.1371/journal.pmed.1000097

Natsir, K., & Arifin, A. Z. (2021). The effect of product knowledge and influence of society on investment intention of stock investors with perceived risk as mediation. Estudios de Economia Aplicada, 39(12). https://doi.org/10.25115/eea.v39i12.6022

Pick-Soon, L., Sing, L. L., & Wasali, S. D. (2024). INVESTING IN SOCIALLY RESPONSIBLE INVESTMENT (SRI): THE ROLE OF RESPONSIBILITY, CONSCIOUSNESS AND LITERACY. Journal of Sustainability Science and Management, 19(2), 95–108. https://doi.org/10.46754/jssm.2024.02.005

Puspawati, D., Abas, N. I., & Permatasari, W. D. (2024). Beyond age stereotypes: Unveiling the investment intentions of young individuals during the COVID-19 pandemic. International Journal of Management and Sustainability, 13(1), 60–75. https://doi.org/10.18488/11.v13i1.3595

Rahman, M., Albaity, M., Baigh, T. A., & Masud, M. A. K. (2023). Determinants of Financial Risk Tolerance: An Analysis of Psychological Factors. Journal of Risk and Financial Management, 16(2), 1–12. https://doi.org/10.3390/jrfm16020074

Raut, R. K., Kumar, R., & Das, N. (2021). Individual investors' intention towards SRI in India: an implementation of the Theory of reasoned action. Social Responsibility Journal, 17(7), 877–896. https://doi.org/https://doi.org/10.1108/SRJ-02-2018-0052

Shehata, S. M., Abdeljawad, A. M., Mazouz, L. A., Aldossary, L. Y. K., Alsaeed, M. Y., & Sayed, M. N. (2021). The Moderating Role of Perceived Risks in the Relationship between Financial Knowledge and the Intention to Invest in the Saudi Arabian Stock Market. International Journal of Financial Studies, 9(1), 9. https://doi.org/https://doi.org/10.3390/ijfs9010009

Sukarno, A., Ono, S. T. H., Nusanto, G., Ambarwati, S. D. A., Sugandini, D., & Pamuji, W. A. (2024). The Effect of Financial Literacy, Motivation, Return to Investment, Social Media, and Fintech on Investment Intention in the Millennial Generation. Review of Integrative Business and Economics Research, 13(3), 431–440. https://www.proquest.com/scholarly-journals/effect-financial-literacy-motivation-return/docview/2886395044/se-2?accountid=46437

Thanki, H., Tripathy, N., & Shah, S. (2024). Investors’ Behavioral Intention in Mutual Fund Investments in India: Applicability of Theory of Planned Behavior. Asia-Pacific Financial Markets. https://doi.org/10.1007/s10690-024-09477-4

Torres-Carrion, P. V., Gonzalez-Gonzalez, C. S., Aciar, S., & Rodriguez-Morales, G. (2018). Methodology for systematic literature review applied to engineering and education. IEEE Global Engineering Education Conference, EDUCON, 2018-April, 1364–1373. https://doi.org/10.1109/EDUCON.2018.8363388

Wang, S., Hu, C., & Chen, S.-C. (2024). Exploring the mediating role of attitude in ESG investment intentions: insights from the Fogg behavior model. Industrial Management and Data Systems. https://doi.org/10.1108/IMDS-07-2024-0653

Wang, Y.-S., Duong, N. T., Ying, C.-H., & Chang, Y.-C. (2024). What Drives People’s Cryptocurrency Investment Behavior. Journal of Computer Information Systems. https://doi.org/10.1080/08874417.2024.2329127

Widagdo, B., & Kenny, R. (2022). The role of personality traits, financial literacy and behavior on investment intentions and family support as a moderating variable. Investment Management & Financial Innovations, 19(2), 143–153. https://doi.org/https://doi.org/10.21511/imfi.19(2).2022.12

Yoopetch, C., & Chaithanapat, P. (2021). The effect of financial attitude, financial behavior and subjective norm on stock investment intention. Kasetsart Journal of Social Sciences, 42(3), 501–508. https://doi.org/10.34044/j.kjss.2021.42.3.08

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). https://doi.org/10.1016/j.heliyon.2024.e34230