International Journal of Academic Research in Business and Social Sciences

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Emotional Intelligence and Investment Decision-Making among Malaysian Retail Investors

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Emotional intelligence (EI) has received increasing attention as an individual capability associated with judgment and decision-making, particularly in situations involving uncertainty and risk. This study examines the relationship between emotional intelligence and investment decision-making among Malaysian retail investors from an organisational behaviour and psychological perspective. A quantitative, cross-sectional design was employed using survey data from 308 retail investors in Malaysia. The data were analysed using Partial Least Squares Structural Equation Modelling (PLS-SEM). The measurement model demonstrated satisfactory reliability and validity. The findings revealed that emotional intelligence was positively and significantly related to investment decision-making (? = .186, p = .006), supporting the proposed hypothesis. However, the effect size was small (f² = .030), indicating that emotional intelligence represents one contributing factor within a broader decision-making process. The findings extend the examination of emotional intelligence beyond conventional organisational settings by demonstrating its relevance to individual decision-making in an uncertain investment environment. The study contributes to the behavioural understanding of investment decision-making by highlighting the role of emotional capabilities alongside financial and informational considerations.
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