The Impact of Investors' Emotional Intelligence On Investment Decision-Making

Abstract

In the present era, money has become a pivotal factor in every individual's life. This paper seeks to delve into the impact of emotional intelligence on investors' decision-making in the realm of investment. Given the closed size of 300 populations in this study population, non-probability sampling was employed, and sample selection was carried out via purposive sampling using a 5-point Likert scale questionnaire. The sample was confined to Chennai City in Tamil Nadu. The data collected underwent analysis using SPSS software, with the analysis methods consisting of descriptive statistics and simple linear regression analysis. The reliability test met the established criteria, validating the trustworthiness of the data for further scrutiny. Notably, the results uncovered a significant and affirmative correlation between emotional intelligence and investment decision-making. Financial investors displayed adeptness in managing their emotions and overcoming obstacles. Furthermore, possessing self-awareness, self-motivation, and empathy toward others' emotions and perspectives significantly enhanced their ability to make sound investments. This research is poised to guide investment advisors in recommending investments based on investors' emotional intelligence competencies.