Investors Behaviour and Psychological Factors Impact on Saudi Arabia Stock Market Sustainability through Investment Decisions

Abstract

This research investigates the influence of behavioural and psychological factors on the sustainability of the Saudi Arabian stock market via investment decisions. Data from 358 active investors was collected through a survey employing convenient sampling. The study utilized a quantitative research approach with a cross-sectional design. Results from Partial Least Square (PLS)-Structural Equation Modelling (SEM) revealed a positive and statistically significant impact of behavioural and psychological aspects on investment decisions by stock market investors. Additionally, the study demonstrated a significant positive effect of investment decisions on the sustainability of the Saudi Arabian stock market. These findings underscore the pivotal role of non-financial factors in shaping investment behaviours and contributing to financial market sustainability. The theoretical aspect emphasizes the necessity of integrating behavioural elements into conventional financial models, while practical implications advocate for personalized interventions to foster sustainable investment practices.