IMPACT OF BEHAVIORAL FACTORS ON THE STOCK INVESTMENT DECISIONS OF GENERATION Z IN VIETNAM

Abstract

The study used Structural Equation Modeling (SEM) to analyze the influence of behavioral factors on the investment decisions of Vietnam's Generation Z. 558 valid survey respondents revealed that overconfidence, fear of missing out, representativeness, and risk attitude had a positive, significant effect on decision-making. On the other hand, framing and herding were found to be unrelated to investment decisions. Fear of missing out is frequently studied in consumer psychology, shopping, and entertainment but has received little attention in investment research. Therefore, the "fear of missing out" effect variable is considered a new point in research. Based on this, the authors proposed several suggestions to promote Generation Z's securities investment in Vietnam. These recommendations include the need for Generation Z investors to exercise control over high-frequency, high-risk transactions, maintain a calm disposition, and analyze investments based on predetermined strategies and methods while avoiding being influenced by negative psychology in investment behavior. Furthermore, personal finance and investment management should be included in both general and university education programs. Misinformation in the media should be monitored, and securities companies should be held accountable with sanctions for information manipulation.