Understanding Investor Behavior: a Mixed-Methods Approach to Analyze Behavioral Factors Impacting Systematic Risk over Time

Purpose: Addressing a research gap in comprehensively understanding the interplay between investor behavior and systematic risk, this study employs a mixed-methods approach. This study aims to identify key indicators shaping investor behavior and quantitatively validate their relationships with temporal changes in systematic risk. Methodology: In the qualitative stage, systematic review and meta-synthesis techniques were employed to extract key indicators. The subsequent quantitative phase involved 384 participants, including investors, capital market professionals, and financial analysts, selected through available sampling. Structural equation modeling (SEM) with factor analysis using AMOS software was employed for data analysis. Findings: The research identifies six impactful dimensions shaping investor behavior: individual factors, personality factors, social factors, psychological factors, emotional components, and ethical components. These dimensions are ranked in order of significance. Empirical results affirm all research hypotheses, emphasizing the importance of these dimensions in understanding investor behavior and its influence on systematic risk. Conclusion: This study provides valuable insights into investor behavior's complex interplay with systematic risk. The amalgamation of qualitative and quantitative methodologies not only unveils key dimensions affecting behavior but also statistically validates these findings. The confirmed hypotheses underscore the relevance of understanding these dimensions for financial professionals, policymakers, and investors, emphasizing the need for a discerning approach in risk management and decision-making processes within the financial realm.