(The Effect of Emotional Intelligence Sub-Dimensions Some of which are Stress Management and General Mood of Market Investors on The Investment Decisions They Take)

Abstract

Purpose – The aim of this article is to search whether there is a relation between the investment decisions which individual investors take in the course of investing in particular financial instruments and their emotional intelligence sub-dimensions some of which are stress management and general mood or not. Design/methodology/approach – In order to acquire data from the determined sample, Bar-On’s emotional intelligence scale and Kaya’s investment decision scale were used. The data acquired from this research was analyzed via SPSS. In this study, dimensions and models of emotional intelligence and also the subjects related to investment decisions were handled. In practice, the effect of investors’ stress management levels and general mood on investment decisions in financial instruments was searched. Findings – It has been determined that individual investors who are investing in Borsa Istanbul are affected by their emotional intelligence while making their investment decisions. According to these results, significant differences were found between investor characteristics and stress management and general mood, which is the lower dimension of emotional intelligence. Discussion – In this study, it was shown that emotional intelligence has more effect on investors than expected. In the literature part, the importance of behavioral finance which is not enough studies is emphasized and it is aimed to contribute to the related literature. This research can be updated on different group investors or companies and contribute to the relevant literature.