THE IMPACT OF COGNITIVE FACTORS OVER INDIVIDUALS’ FINANCIAL DECISION

  • Marhanum Che Mohd Salleh International Islamic University Malaysia
  • Mohammad Abdul Matin Chowdhury International Islamic University Malaysia
  • Ahmad Fawwaz Bin Mohd Nasarudin International Islamic University Malaysia
  • Ririn Tri Ratnasari Universitas Airlangga

Abstract

Objectives - The objective of this paper is to examine the effect of cognitive factors which are financial planning, herding behaviour and financial knowledge towards individual financial decision.
Methodology- This research adopts quantitative methodology for data collection as well as data analysis. Multiple regression analysis is used to examine the effect of cognitive factors towards dependent variable.
Analysis Findings- Results indicate that only two cognitive variables which are financial planning and financial knowledge have significant effect toward financial decision. Herding behaviour is found to insignificantly effect the individual financial decision process.
Contribution- Results of this research would be significance to proof that other than external factors, internal factors which are cognitive elements are crucial to influence the individual financial decision
Published
Dec 28, 2020
How to Cite
SALLEH, Marhanum Che Mohd et al. THE IMPACT OF COGNITIVE FACTORS OVER INDIVIDUALS’ FINANCIAL DECISION. Management & Accounting Review (MAR), [S.l.], v. 19, n. 3, dec. 2020. ISSN 2550-1895. Available at: <http://arionline.uitm.edu.my/ojs/index.php/MAR/article/view/1246>. Date accessed: 24 sep. 2021. doi: http://dx.doi.org/10.24191/mar.v19i3.1246.