Representative bias and investment decision: the moderating role of accounting disclosure. An empirical study using structural equation modelling approach
by Jafer Alsawalhah
International Journal of Productivity and Quality Management (IJPQM), Vol. 36, No. 1, 2022

Abstract: The purpose of this study is to clarify the relationship between representative bias and investment decision, along with the moderating role of accounting disclosure, as most literature conducted studies in well-developed financial markets, whereas less is known about investors in emerging-markets. The study proposes a novel model that suggests accounting disclosure as a moderating construct and is expected to moderate the negative effect of representative bias in shaping investment decision of investors during the investment-decision process. Collecting data, response from 258 active investors in the Amman Stock Exchange, through adopting a purposive convenience sampling was collected using a questionnaire-based-survey. To conduct a statistical analysis, structural equation modelling (SEM) was applied, and the result reported that representative bias negatively influenced investment decision, whereas accounting disclosure was a positive determinant for investment decision. Moreover, the proposed moderating role was able to reduce the negative effect of representative bias on investment decision. Accordingly, discussion and directions were provided.

Online publication date: Tue, 26-Jul-2022

The full text of this article is only available to individual subscribers or to users at subscribing institutions.

 
Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.

Pay per view:
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.

Complimentary Subscribers, Editors or Members of the Editorial Board of the International Journal of Productivity and Quality Management (IJPQM):
Login with your Inderscience username and password:

Username:        Password:          Forgotten your password?

Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.

If you still need assistance, please email subs@inderscience.com