Role of Self-Monitoring on Individual Investors’ Investment Decisions, The mediating Role of Sensational Attitude

Purpose - Previous studies on investors’ financial behavior have revealed that a number of factors can have influence on the financial behavior of investors causing deviation from a normal and rational financial attitude. On this basis, this study has been conducted to analyze the impact of self-monitoring along with the mediating role of sensational attitude of investors on their investment decision making behavior.Research Approach - For this research, a structured questionnaire related to selected variables has been filled by 303 individual investors having distinctive backgrounds on the basis of their gender, age, education and occupation from different stock exchanges of Pakistan as a targeted sample population. Data has been examined by using AMOS 22 and applying it on structural equation modeling.Findings - Results of this study have found that self-monitoring quality of investors has direct influence on their decisions. In case of mediator; sensational attitude fully mediates the effects of self-monitoring while studying its relationship with individuals’ investment behaviors.Limitations – This study has been specifically conducted to analyze the Pakistani individual investors’ financial behavior with limited sample size. The findings for same study may vary from these if it would be conducted in any other geographical area with different sample size.Originality - This study helps to understand the behavior of individual investors having self-monitoring bias in their personalities under certain circumstances. It is a precise resource to have familiarity about investors psyche with self-monitoring feature while making financial decisions in Pakistani culture.

Keywords:

Behavioral Biases , Self-monitoring , Sensational attitude , Investment Behavior