Published August 30, 2022 | Version CC BY-NC-ND 4.0
Journal article Open

Analyzing the Influence of Emotional Intelligence on Investor Behavior in Developing Regions: A PRISMA Systematic Review

Creators

  • 1. Department of Business, Hampton University, Virginia, USA.
  • 2. Department of Business Hampton University, Virginia, USA.

Description

Abstract: Background: This article aims to systematically review studies analyzing the influence of emotional intelligence (EI) on investor behaviors in developing countries (as defined by the United Nations Development Program) using PRISMA. In developing nations, the lack of investigation in this area is prevalent and nonexistent in some nations. Methods: EI and investor behavior-related papers in English were selected from ProQuest, EBSCO, and Google Scholar database searches in developing countries. Results: The review included 19 studies covering eight developing countries, extending the conclusion of a positive correlation between EI and investment decisions in growing regions. However, inconsistencies and gaps exist in the EI model adoption and investor behaviors. Evidence Limitation/Implications: Limitations include the need for extended EI and investor behavior dimensions and more geographic coverage. Important implication highlights include how EI helps investors enhance investment decision-making. Originality/value: This unprecedented PRISMA review of a comprehensive set of literature on the influence of EI on investor behavior in developing countries extends the current evidence base in this area.

Notes

Published By: Blue Eyes Intelligence Engineering & Sciences Publication (BEIESP) © Copyright: All rights reserved.

Files

L15100881222.pdf

Files (468.3 kB)

Name Size Download all
md5:4911954a4a9db81ecf771cc10faabe0f
468.3 kB Preview Download

Additional details

Related works

Is cited by
Journal article: 2394-0913 (ISSN)

References

  • Ahmad, M. (2018). Impact of neurotransmitters, emotional intelligence, and personality on investor's behavior and investment decisions. Pakistan Journal of Commerce and Social Sciences (PJCSS), 12(1), 330-362.
  • Aren, S., & Hamamci, H. N. (2020). Relationship between risk aversion, risky investment intention, investment choices: Impact of personality traits and emotion. Kybernetes.
  • Arora, M. (2016). Effect of Cognitive Abilities Emotional Intelligence and Self Esteem On Investment Decision Making A Prospect Theory Approach [Doctoral dissertation, Thapar Institute of Engineering and Technology] Shodhganga: a reservoir of Indian theses @INFLIBNET http://hdl.handle.net/10603/260020.
  • Asamoah, G., Baah-Adade, A. K., Ayikpah, Y. A., & Ayikpah, Y. A. A. (2021). Effects of emotional intelligence variables on investor behaviour in Ghana. Journal of Technology, Engineering, Management & Computational Sciences, 1(1), 130-240.
  • Aydemir, S. D., & Aren, S. (2017). Do the effects of individual factors on financial risk-taking behavior diversify with financial literacy? Kybernetes.
  • Bucciol, A., Guerrero, F., & Papadovasilaki, D. (2020). Financial risk-taking and trait emotional intelligence. Review of Behavioral Finance.
  • Dhiman, B., & Raheja, S. (2018). Do personality traits and emotional intelligence of investors determine their risk tolerance? Management and Labour Studies, 43(1-2), 88-99.
  • El-Chaarani, H. (2016). Exploring the impact of emotional intelligence on portfolio performance: An international exploratory study. Humanomics.
  • Goleman, D., Boyatzis, R. E., & McKee, A. (2013). Primal leadership: Unleashing the power of emotional intelligence. Harvard Business Press.
  • Goyal, K., Kumar, S., & Xiao, J. J. (2021). Antecedents and consequences of Personal Financial Management Behavior: a systematic literature review and future research agenda. International Journal of Bank Marketing.
  • Gupta, M. A., & Kumar, S. (2019) Do Emotional Intelligence Influence Investment Decision Making Among Generation Y?
  • Hadi, F. (2017). Effect of emotional intelligence on investment decision making with a moderating role of financial literacy. China-USA Business Review, 16(2), 53-62.
  • Jamil, N., & Bashir, T. (2021). Impact of Cognitive Dissonance Bias on Investors' Decisions: Moderating Role of Emotional Intelligence.
  • Johnsi, S., & Sunitha, K. A. (2019). Impact of personality and emotional intelligence on investor behaviour. sdmimd Journal of Management, 10(1), 21-29.
  • Lubis, H., Kumar, M. D., Ikbar, P., & Muneer, S. (2015). Role of psychological factors in individuals investment decisions. International Journal of Economics and Financial Issues, 5(1S), 397-405.
  • Munir, I.U., Hussain, S., Ijaz, M.S., ur Rehman, Z. and Zulfiqar, B., 2020. DO GENDER AND FINANCIAL LITERACY RELEVANT ON THE RELATIONSHIP BETWEEN EMOTIONAL INTELLIGENCE AND INVESTMENT BEHAVIOR? International Journal of Management (IJM), 11(8).
  • Munir, I. U., Yue, S., Ijaz, M. S., Zaidi, S. Y., & Hussain, S. (2018). Effect of emotional intelligence on behavior of investment: Possible role of financial literacy and gender. Asia Proceedings of Social Sciences, 2(2), 79-83.
  • Page, M. J., McKenzie, J. E., Bossuyt, P. M., Boutron, I., & Hoffmann, T. C. (2021). The PRISMA 2020 statement: an updated guideline for reporting systematic reviews. Systematic Reviews, 10, 1-11.
  • Pirayesh, R. (2014). A study on the effect of emotional intelligence on retail investors' behavior. Management Science Letters, 4(1), 43-48.
  • Raheja, S., & Dhiman, B. (2020). How do emotional intelligence and behavioral biases of investors determine their investment decisions? Rajagiri Management Journal.
  • Salehi, M., & Mohammadi, N. (2017). The relationship between emotional intelligence, thinking style, and the quality of investors' decisions using the log-linear method. Qualitative Research in Financial Markets.
  • Salovey, P. (2001). Applied emotional intelligence: Regulating emotions to become healthy, wealthy, and wise. Emotional intelligence and everyday life, 168-184.
  • Sashikala, V. (2017). Impact of Equity Investors Personality Emotional Intelligence and Risk Aversion on Behavioural Factors and Investment Intention [Doctoral dissertation, Avinashilingam Deemed University For Women] Shodhganga: a reservoir of Indian theses @INFLIBNET http://hdl.handle.net/10603/257524
  • Saweris, S., Sapuric, S., El Gazzar, S., & Georgiou (2022). The Impact of Neurotransmitters, Emotional Intelligence and Personality on Individual Investors' Investment Decisions: An Empirical Comparative Study. Emotional Intelligence and Personality on Individual Investors' Investment Decisions: An Empirical Comparative Study.
  • Sharma, R. (2020). The Impact of Behavioral Dispositions on Risk Endurance of Individual Investors: Application of Multiple Discriminant Analysis. IUP Journal of Financial Risk Management, 17(1), 16-42.
  • United Nations Development Programme (2021). Developing regions. Retrieved April 14, 2022, from https://hdr.undp.org/en/content/developing-regions
  • Varzaneh, N. S., & Aliahmadi, S. (2015). An Investigation of the Relationship between EQ and Decision-making Style of Investors in Stock Exchange Market (Case Study: Esfahan). Mediterranean Journal of Social Sciences, 6(3), 423-423.
  • Ziyaee-Pour A., & Miladiyan H. (2014). The effect of emotional intelligence on the financial behavior of investors in the Tehran Stock Exchange, Uct Journal of Management and Accounting Studies 2 (1–6).

Subjects

ISSN: 2394-0913 (Online)
https://portal.issn.org/resource/ISSN/2394-0913#
Retrieval Number: 100.1/ijmh.L15100881222
https://www.ijmh.org/portfolio-item/l15100881222/
Journal Website: www.ijmh.org
https://www.ijmh.org
Publisher: Blue Eyes Intelligence Engineering and Sciences Publication (BEIESP)
https://www.blueeyesintelligence.org