The Impact of Emotional Finance, and Market Knowledge and Investor Protection on Investment Performance in Stock and Real Estate Markets

Muhammad Irfan, Raima Adeel and Muhammad Shaukat Malik

SAGE Open, 2023, vol. 13, issue 4, 21582440231206900

Abstract: Investors are influenced emotionally when making financial investment decisions. Investing paradigms largely ignore emotions, a phenomenon explored in this study. This study used a survey to examine the relationship between emotional Finance (anxiety, happiness, and optimism), investor protection, and market knowledge and investment performance. Investors in real estate and stocks have provided us with data. We found that market knowledge plays a significant role in ensuring superior investment performance. Anxiety, happiness, and optimism are strong indicators of a higher-order construct of emotional Finance. The findings also showed that emotional Finance is positively associated with investment performance. At the same time, investor protection has been found to have no association with investment performance. Others may investigate additional components of emotions and financial decisions.

Keywords: emotional finance; market knowledge; psychological factors; investment performance; investor protection; stock market; real estate investment (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:sae:sagope:v:13:y:2023:i:4:p:21582440231206900

DOI: 10.1177/21582440231206900

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