Real estate investment decisions in COVID-19 crisis: the effect of perception and behavioral biases

Author:

Ali Muhammad,Choi-Meng Leong,Aw Eugene Cheng-Xi,Puah Chin-Hong,Barut Abdulkadir

Abstract

Purpose This study aims to examine the interconnectedness between investors' perceptions of assets and their behavioral factors with investment decisions during the COVID-19 pandemic in the real estate business in Pakistan. In this regard, this study predicted investment decisions using individuals’ perceptions of the asset (perceived asset quality, perceived asset price and perceived asset value [PAV]),and behavioral biases (overconfidence [OC], herding [HD], disposition effect [DE] and risk aversion [RA]). Design/methodology/approach This study used a survey-based instrument to gather a total of 189 usable samples. The sample data were analyzed using partial least square structural equation modeling. Findings The findings of this study indicated that PAV, OC and HD significantly predicted the investment decision, whereas DE and RA had an insignificant impact on investment decisions in the real estate business. In addition, this study found that PAV is the most important factor to predict investment decisions in real estate during the COVID-19 crisis. Originality/value The authors are certain that the study findings reinforce policy implications for regulators, policymakers and financial institutions. The study findings are also useful and relevant if the real estate sector experiences a crisis in the future.

Publisher

Emerald

Subject

General Economics, Econometrics and Finance

Reference59 articles.

1. How financial literacy moderate the association between behaviour biases and investment decision?;Asian Journal of Accounting Research,2021

2. Investor behaviour and investment decisions: evidence from Pakistan stock exchange;Asian Academy of Management Journal(Early View),2023

3. Does stakeholder pressure matter in Islamic banks’ corporate social responsibility and financial performance?;International Journal of Ethics and Systems,2022

4. Service quality perception and customer satisfaction in Islamicbanks of Pakistan: the modified SERVQUAL model;Total Quality Management and Business Excellence,2017

5. Islamic home financing in Pakistan: a SEM-based approach using modified TPB model;Housing Studies,2017

Cited by 5 articles. 订阅此论文施引文献 订阅此论文施引文献,注册后可以免费订阅5篇论文的施引文献,订阅后可以查看论文全部施引文献

同舟云学术

1.学者识别学者识别

2.学术分析学术分析

3.人才评估人才评估

"同舟云学术"是以全球学者为主线,采集、加工和组织学术论文而形成的新型学术文献查询和分析系统,可以对全球学者进行文献检索和人才价值评估。用户可以通过关注某些学科领域的顶尖人物而持续追踪该领域的学科进展和研究前沿。经过近期的数据扩容,当前同舟云学术共收录了国内外主流学术期刊6万余种,收集的期刊论文及会议论文总量共计约1.5亿篇,并以每天添加12000余篇中外论文的速度递增。我们也可以为用户提供个性化、定制化的学者数据。欢迎来电咨询!咨询电话:010-8811{复制后删除}0370

www.globalauthorid.com

TOP

Copyright © 2019-2024 北京同舟云网络信息技术有限公司
京公网安备11010802033243号  京ICP备18003416号-3