EFFECT OF EMOTIONAL INTELLIGENCE ON INVESTORS BEHAVIOUR IN THE NIGERIA CAPITAL MARKET
1 Department of Business Administration, Kaduna State University
2 Department of Business Administration, Airforce Institute of Technology.
* Corresponding author: rahilatuahmadmuhammad@fmskasujournals.org.ng
2 Department of Business Administration, Airforce Institute of Technology.
* Corresponding author: rahilatuahmadmuhammad@fmskasujournals.org.ng
Abstract
The study investigate the effect of emotional intelligence on investors behavior in the Nigeria
capital market. Adopting survey research design, data were collected from 100 investor using
self-administered questionnaire. The research employed Partial Least Squares Structural
Equation Modeling (PLS-SEM) through Smart PLS to analyze the data and test the hypothesized
relationships. Findings reveal a significant and positive relationship between social awareness
and investor behavior, underscoring the pivotal role of emotional intelligence in shaping
investment decisions.. The study concludes that enhanced social awareness enables investors to
make informed decisions by effectively navigating emotional and cognitive biases. It
recommends leveraging social platforms, such as social media and company websites, to access
real-time market information and improve investment outcomes. This research contributes to
behavioral finance literature and highlights the importance of emotional intelligence in fostering
rational decision-making in the dynamic Nigerian capital market.
Keywords
Emotional Intelligence
social Awareness
investor behavior
References
- Akhtar, F., & Das, N. (2020a). Investor personality and investment performance: from the perspective of psychological traits. Qualitative Research in Financial Markets, 12(3), 333-352. https://doi.org/10.1108/qrfm-11-2018-0116
- Akhtar, F., & Das, N. (2020b). Investor personality and investment performance: from the perspective of psychological traits. Qualitative Research in Financial Markets, 12(3), 333-352. https://doi.org/10.1108/qrfm-11-2018-0116
- Bakar, S., & Yi, A. N. C. (2016). The impact of psychological factors on investors' decision making in Malaysian stock market: A case of Klang Valley and Pahang. Procedia Economics and Finance, 35, 319-328. https://doi.org/10.1016/s2212-5671(16)00040-x
- Cognitive and emotional behavioural finance factor and investors'investment decision making: empirical evidence from nigerian capital market. (2023). In o. Okonkwo & h. Jimba ibrahim (eds.), 9th annual international academic conference on ACCOUNTING AND FINANCE. https://www.researchgate.net/profile/Adesemowomodupeola/publication/381769224_the_effect_of_information_technology_on_tax_administration_in_lagos_state/links/667de36b0a25e27fbc10dc16/the-effect-of-information-technology-on-tax-administration-in-lagos-state.pdf#page=360
- Dhankar, R. S. (2019). Capital markets and investment decision making. In Springer eBooks. https://doi.org/10.1007/978-81-322-3748-8
- Elgazzar, S., Georgiou, I., Sapuric, S., & Saweris, S. A. (2024). The Impact of Neurotransmitters, Emotional Intelligence, and Personality traits on individual investors' investment decisions: An Empirical comparative study. Global Business & Economics Review, 1(1).
- EPRA International Journal of Environmental Economics, Commerce and Educational Management. (2020). EPRA International Journal of Environmental, Economics, Commerce and Educational Management. https://doi.org/10.36713/epra0414
- Gkintoni, E., Halkiopoulos, C., Dimakos, I., & Nikolaou, G. (2023). Emotional intelligence as Indicator for Effective Academic Achievement within the School setting: A Comprehensive Conceptual analysis. preprint.org. https://doi.org/10.20944/preprints202310.2029.v2
- Gignac, G. E., & Szodorai, E. T. (2024). Defining intelligence: Bridging the gap between human and artificial perspectives. Intelligence, 104, 101832. https://doi.org/10.1016/j.intell.2024.101832
- Hadi, N. F. (2017). Effect of emotional intelligence on investment decision making with a moderating role of financial literacy. USA-China Business Review., 16(2). https://doi.org/10.17265/1537-1514/2017.02.002
- Hair, J. F., Hult, G. T. M., Ringle, C. M., Sarstedt, M., Danks, N. P., & Ray, S. (2021). Partial Least Squares Structural Equation Modeling (PLS-SEM) using R. In Classroom companion: business. https://doi.org/10.1007/978-3-030-80519-7
- Hair, J. F., Risher, J. J., Sarstedt, M., & Ringle, C. M. (2019). When to use and how to report the results of PLS-SEM. European Business Review, 31(1), 2-24. https://doi.org/10.1108/ebr-11-2018-0203
- Idris, O. (2023, December 1). Discussion on the Role of Emotional Intelligence in Financial Decision-Making. https://resdojournals.com/index.php/jpo/article/view/338
- Marton, F., & Booth, S. (2013). Learning and awareness. In Routledge eBooks. https://doi.org/10.4324/9780203053690
- Moini, J., LoGalbo, A., & Ahangari, R. (2024). Cognitive functions. In Elsevier eBooks (pp. 211-228). https://doi.org/10.1016/b978-0-323-95975-9.00002-0
- Momtaz, P. P. (2020). CEO emotions and firm valuation in initial coin offerings: An artificial emotional intelligence approach. Strategic Management Journal, 42(3), 558-578. https://doi.org/10.1002/smj.3235
- Ogbebor, S. a. A. (2020). Individual investors' expectations and stock price behaviour: Evidence from the Nigerian stock market. Solid State Technology, 4028-4044. http://solidstatetechnology.us/index.php/JSST/article/view/2493
- Rahayu, E., & Rahadi, R. A. (2023). Exploring investor behavior and decision making in alternative investments. Zenodo (CERN European Organization for Nuclear Research). https://doi.org/10.5281/zenodo.8131692
- Raheja, S., & Dhiman, B. (2020). How do emotional intelligence and behavioral biases of investors determine their investment decisions? Rajagiri Management Journal, 14(1), 35-47. https://doi.org/10.1108/ramj-12-2019-0027
- Rowe, H. a. H. (2024). Problem solving and intelligence. https://doi.org/10.4324/9781032636696
- Sattar, M. A., Toseef, M., & Sattar, M. F. (2020). Behavioral finance biases in investment decision making. International Journal of Accounting, Finance and Risk Management, 5(2), 69. https://doi.org/10.11648/j.ijaifrm.20200502.11
- Shanmuganathan, M. (2020). Behavioural finance in an era of artificial intelligence: Longitudinal case study of robo-advisors in investment decisions. Journal of Behavioural and Experimental Finance, 27, 100297. https://doi.org/10.1016/j.jbef.2020.100297
- Sutejo, B. S., Sumiati, N., Wijayanti, R., & Ananda, C. F. (2023). Emotional intelligence and stock trading decisions: Indonesia's millennial generation in the COVID-19 era. Asian Economic and Financial Review, 13(12), 949-969. https://doi.org/10.55493/5002.v13i12.4893
- Wong, W., & Wong, S. C. (2019). Unbiased estimation methods of nonlinear transport models based on linearly projected data. Transportation Science. https://doi.org/10.1287/trsc.2018.0856
- Worley, J. A. (2023). Empathy as a wellness driver in the workplace. In Springer eBooks (pp. 231-250). https://doi.org/10.1007/978-3-031-35494-6_12
How to Cite
Muhammad, R. A., & Tamasi, S. A. (2024). EFFECT OF EMOTIONAL INTELLIGENCE ON INVESTORS BEHAVIOUR IN THE NIGERIA CAPITAL MARKET. Kaduna Marketing Review, 2(2), 159-171. https://doi.org/10.68022/kmr.2024.nyt27rqh
R. A. Muhammad, and S. A. Tamasi, "EFFECT OF EMOTIONAL INTELLIGENCE ON INVESTORS BEHAVIOUR IN THE NIGERIA CAPITAL MARKET," Kaduna Marketing Review, vol. 2, no. 2, pp. 159-171, December 2024. doi: 10.68022/kmr.2024.nyt27rqh