Risk Tolerance, Self-Attribution and Investment Decision among Retail Investors in the Stock Market, does Self-Control Matter?

Abstract

This study examined the moderating effect of self-control on the relationship between risk tolerance, self-attribution and investing decision of individual investors in the stock market using self-control as a moderator. The study employed sample of 388 investors and cross sectional research survey design through questionnaire items adapted from past studies. The study employed Partial least square structural equation modelling through SmartPLS 4.0. The results showed that while risk tolerance and self-control were significant in predicting investing decision, self-attribution was not significant in predicting investment decision. It further revealed that self-control significantly moderate the relationship between risk tolerance and investment decision, self-control does not significantly moderate the relationship between self-attribution and investment decision. In line with the findings, the study concludes that investment decision is affected by risk tolerance and self-control and self-control significantly moderates the relationship between risk tolerance and investment decision. The study therefore recommends that the NSE management, investment advisors, and the capital market authority organise trainings and workshops for the NSE investors and this will boost self-control strengths and raise their investing decision.