The Impact of Investment Behavior and Risk Appetite on Investment Decisions of Rural Investors
https://doi.org/10.26794/2587-5671-2026-30-3-230-242
Abstract
The research aims to investigate the impact of investment behavior and risk appetite on investment decision-making for rural investors, with frequent analysis of the demographic characteristics of rural investors. The research was based on a cross-sectional research design in which the data was collected from the rural areas of Haryana and Punjab; 486 individual investors’ data was collected using structured questionnaires from all 22 districts of Haryana and seven districts of Punjab. Frequency analysis of the demographic characteristics has been performed using SPSS version 26. For testing the reliability and validity of the questionnaire, the Cronbach alpha test, Composite reliability, and Discriminant validity and hypothesis testing have been done using Structural Equation Modelling [SEM] with Smart PLS 4. The results of the study reveal that investment behavior has a significant impact on investment decision-making. This implies that rural investors make decisions based on their behavioral aspects, i. e., needs, objectives, the history of particular assets. The results also show that risk appetite does not significantly affect the decision-making process of rural investors, implying that regardless of its level, it is not the major factor in investment decision-making.
Keywords
investment behaviour,
risk appetite,
investment decision-making,
rural investors,
structural equation modelling
JEL: G4, G5, R1, J1
About the Authors
B. Singh
Lovely Professional University
India
Competing Interests:
India
Bhawandeep Singh — Research Scholar at Mittal School of Business
Phagwara
Competing Interests:
The authors have no confl icts of interest to declare.
. Rekha
Lovely Professional University
India
Competing Interests:
India
Rekha — PhD, Prof. in the Finance and Banking Department of Mittal School of Business
Phagwara
Competing Interests:
The authors have no confl icts of interest to declare.
S. Sharma
Lovely Professional University
India
Competing Interests:
India
Swaty Sharma — PhD, Assis. Prof. in the Finance and Banking Department of Mittal School of Business
Phagwara
Competing Interests:
The authors have no confl icts of interest to declare.
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For citations:
Singh B., Rekha , Sharma S. The Impact of Investment Behavior and Risk Appetite on Investment Decisions of Rural Investors. Finance: Theory and Practice. 2026;30(3):230-242. https://doi.org/10.26794/2587-5671-2026-30-3-230-242
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