Measuring aggressive decision-making behavior: A confirmatory factor analysis

Abstract

This research paper aims to develop and validate a questionnaire for measuring aggressive investor behavior (AIB). The design of the questionnaire holds significant importance, given the absence of validated questionnaires in the current body of literature. Currently, limited research is available on aggressive investor behavior. In order to integrate behavioral finance theory and market microstructure into the study of decision-making behavior, it is essential to develop and validate a questionnaire model for aggressive investor behavior. This research involved three stages. First, the compilation of a questionnaire. Second, test its validity and reliability. Finally, after conducting statistical analysis, a total of 40 investors participated in the pre-survey. A confirmatory factor analysis (CFA) was conducted with 324 investors as respondents. The questionnaire developed to assess aggressive investor behavior and its determinant factors has been proven valid and reliable. The questionnaire is composed in straightforward language, making it simple to understand. However, using this questionnaire in other areas may necessitate further adjustments and modifications. To the best of the authors' knowledge, no previous studies have developed a questionnaire to assess aggressive investor behavior from the perspective of the Indonesian stock market. The research findings offer valuable insights for scholars and financial institutions keenly interested in finance research. This study provides a guideline in the form of a valid questionnaire to facilitate research, especially concerning aggressive investor behavior. Additionally, this research contributes to the literature on financial behavior by providing a validated questionnaire for further exploration.