Determination of Long-term Investment Intentions: Moderating Role of Construal Priming

Contemporary Economics (2020), Vol. 14 No. 4, pp. 418-427

10 Pages Posted: 10 May 2021

Date Written: December 22, 2020

Abstract

The current study investigates long-term investment intentions by linking the moderating role of construal priming in the causal relationship to defensive pessimism, which is a novel approach. The data was collected from 450 employees of private institutions by means of questionnaires and PLS-SEM was used in analysis. The results indicated a positive relationship between defensive pessimism, self-control, consumer financial product bias, and long-term investment. In addition, negative moderation role of the level of construal priming was observed, along with the links of defensive pessimism and long-term investment. Thus, the study provides crucial contexts for understanding long-term investment intentions from a behavioral perspective, which is often ignored in the financial management literature.

Keywords: Level of construal priming, defensive pessimism, long-term investment, consumer financial product bias

JEL Classification: G41, G51

Suggested Citation

Praja, Arief Kusuma Among and Takarinawati, Suryanti and Sinaga, Obsatar, Determination of Long-term Investment Intentions: Moderating Role of Construal Priming (December 22, 2020). Contemporary Economics (2020), Vol. 14 No. 4, pp. 418-427, Available at SSRN: https://ssrn.com/abstract=3840870

Arief Kusuma Among Praja (Contact Author)

Esa Unggul University ( email )

Arjuna Way North
West Jakarta
Indonesia

Suryanti Takarinawati

Esa Unggul University ( email )

Arjuna Way North
West Jakarta
Indonesia

Obsatar Sinaga

Padjadjaran University ( email )

Jl. Dipatiukur 35
Bandung, West Java 40132
Indonesia

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