PRETESTING AND PILOTING THE RESEARCH INSTRUMENT TO EXAMINE THE CENTRAL ROLES OF RISK PERCEPTION AND ATTITUDE TOWARDS FINANCIAL INVESTMENT BEHAVIOURAL INTENTION AMONG MALAYSIANS
DOI:
https://doi.org/10.51200/jaaab.v0i0.1295Keywords:
risk perception, attitude, personal finance, pretesting, pilot testAbstract
Risk perceptions and attitude are important in the context of decision-making process involving risky options because individuals normally do not have perfect information and their decision making is affected by bounded rationality. The paper aims to analyse and develop the instrument for the examination of the central roles of risk perception and attitude, sequentially, in affecting the behavioural intention towards financial investment. Items included in the pre- test and pilot test stages were adapted from literature, but not specifically related to personal finance. The two stages have significant roles in ensuring and strengthening the content validity and the reliability of the instrument. The finalised survey instrument contained a total of 40 indirect measured items, which were then employed in the study.
References
Albaity, M., & Rahman, M., (2012). Behavioural finance and Malaysian culture. International Business Research, 5 (11) 65.
Beaton, D. E., Bombardier, C., Guillemin, F., & Ferraz, M. B. (2000). Guidelines for the process of cross-cultural adaptation of self-report measures. Spine, 25 (24) 3186–3191.
Blume, M. E., & Friend, I. (1973). A new look at the capital asset pricing model. Journal of Finance, 28 (1) 19–33.
Brennan, M. J. (1995). The individual investor. Journal of Financial Research, 18 (1) 59–74.
Brislin, R. W. (1970). Back-translation for cross-cultural research. Journal of Cross Cultural Psychology, 1,185–216.
Chapman, D. W., & Carter, J. F. (1979). Translation procedures for the cross-cultural use of measurement instruments. Educational Evaluation and Policy Analysis, 1 (3) 71–76.
Char, E. S., Kim, K. H., & Erlen, J. A. (2007). Translation of scales in cross‐cultural research: Issues and techniques. Journal of Advanced Nursing, 58 (4) 386–395.
Comrey, A. L., & Lee, H. B. (1992). Interpretation and application of factor analytic results. A first course in factor analysis, 2.
Cooper, D. R., & Schindler, P. S. (2003). Business research methods (8th Ed.). New York: McGraw Hill.
Dayala, R. (2012). The Capital asset pricing model, a fundamental critique. Business Valuation Review, 31 (1) 23–34.
Dempsey, M. (2013). The Capital Asset Pricing Model (CAPM): The history of a failed revolutionary idea in finance? ABACUS: A Journal in Accounting, Finance, and Business Studies, 49, 7–23.
Dulebohn, J. H., & Murray, B. (2007). Retirement savings behavior of higher education employees. Research in Higher Education, 48 (5) 545–582.
Fabrigar, L. R., Petty, R. E., Smith, S. M., & Crites, S. L. Jr. (2006). Understanding knowledge effects on attitude–behaviour consistency: The role of relevance, complexity, and amount of knowledge. Journal of Personality and Social Psychology, 90 (4) 567–577.
Fama, E., F., & French, K., R. (1992). The cross-section of expected stock returns. Journal of Finance, 47 (2) 427–465.
Field, A. (2009). Discovering statistics using SPSS (3rd Ed.). Singapore: Sage
Fink, A. (1995). The survey handbook, thousand oaks. California: Sage.
Flynn, L., R., & Goldsmith, R., E. (1999). A short, reliable measure of subjective knowledge. Journal of Business Research, 46, 57–66.
Guadagnoli, E., & Velicer, W., F. (1988). Relation of sample size to the stability of component patterns. Psychological Bulletin, 103 (2) 265 275.
Hair, J. F., Bush, R. F., & Ortinau, D. J. (2003). Marketing research within a changing information environment. New York: McGraw-Hill.
Hamid, F. S., Rangel, G. J., Taib, F. M., & Thurusamy, R. (2013). The relationship between risk propensity, risk perception and risk-taking behaviour in an emerging market. International Journal of Banking and Finance, 10 (1) 1–13.
Hoffman, A. O. I., Post, T., & Pennings, J. M. E. (2013). Individual investor perceptions and behavior during the financial crisis. Journal of banking and finance, 27, 60–74.
Hunt, S. D., Sparkman, R. D. Jr., & Wilcoc, J. B. (1982). The pretest in survey research: Issues and preliminary findings. Journal of Marketing Research, 19(2) 269–273
Jamaludin, N., & Gerrans, P. (2014). Retirement savings investment decisions: Evidence from Malaysia. Research paper, Social Science Research Network. Retrieve from http://ssrn.com/abstract=2399817 or http://dx.doi.org/10.2139/ssrn.2399817).
Jorgensen, B. L. (2007). Financial Literacy of College Students: Parental and peer influences (Student’s Thesis). Virginia Polytechnic Institute and State University, Blackburg, Virginia, United States.
Jorgensen, B. L., & Salva, J. (2010). Financial literacy of young adults: The importance of parental socialization. Family Relations, 59, 465–478.
Kent, R., (2001). Data construction and data analysis for survey research. Macmillan.
Kitchenham, A. B., & Pfleeger, L. S. (2002). Principles of survey research: Part 3: Constructing a survey instrument. ACM SIGSOFT Software Engineering Notes, 27(2) 20–24.
Kumar, M., Abdul Talib, S., & Ramayah, T. (2013). Business research methods. Shah Alam, Malaysia: Oxford Fajar Sdn. Bhd.
Lam, T., & Hsu, C. H. C. (2006). Predicting behavioral intention of choosing a travel destination. Tourism Management, 27, 589–599.
Lee, M. C. (2009). Predicting and explaining the adoption of online trading: An empirical study in Taiwan. Decision Support Systems, 47, 133–142
Litterer, J. A. (1965). The analysis of organization. New York: Wiley.
Luckas, B., Hair, J., & Ortinau, D. (2004). Marketing Research. North Ryde, NSW: McGrawHill.
Lusardi, A., & Mitchell, O. S. (2008). Planning and financial literacy. How do women fare? American Economic Review, 98 (2) 413–417.
MacCrimmon, K. R., & Wehrung, D. A. (1986). Taking risks: The management of uncertainty. The Free Press, A Division of Macmillan, Inc, New York
Matsunaga, M. (2015). How to factor-analyze your data right: Do’s, don’ts, and how-to’s. International Journal of Psychological Research, 3 (1) 97–110.
Nunnally, J. C., & Bernstein, I. H. (1994). Psychometric theory (3rd Ed.). New York: McGraw-Hill.
Ramayah, T., Rouibah, K., Gopi, M., & Rangel, G. J. (2009). A decomposed theory of reasoned action to explain intention to use Internet stock trading among Malaysian investors. Computers in Human Behavior, 25, 1222–1230.
Ricciardi, V., & Simon, H. K. (2000). What is behavioural finance? Business, Education, and Technology Journal, Fall, 2000, 1–9.
Roll, R. (1977). A critique of the asset pricing theory’s tests – Part I: On the past and potential testability of the theory. Journal of Financial Economics, 4, 129–176.
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2017 © Universiti Malaysia Sabah
This work is licensed under a Creative Commons Attribution 4.0 International License.
Total Views: 616
| 
Total Downloads: 2919
