The Roles of Investment Prospect, Trust and Confidence toward Investors’ Willingness to Buy in Market Uncertainty

Abstract

Investors look for companies that demonstrates promising prospect and increasing growth, to ensure they can obtain a high return from their investments. This study aims to explore investors sentiment on Pre-IPO stage on uncertainty situation when they make investment decisions. The investors perceive the Pre-IPO company as an “investment package” with a promising growth profile. The lucrative potential for the firms will influence investors’ decision-making process. Data gathered from institutional investors as respondents are analyzed by CB-SEM and processed by LISREL software. There are 6 hypotheses tested, which 5 of the hypotheses were accepted. The result of the study is the more prospective the company, the more it gains trust and confidence of investors to invest. Depending solely on Investors’ Trust is not pretty strong to influence investors to participate, therefore it should be amplified by boosting their confidence. Hence, establishing trust and confidence simultaneously are essential on attracting investors willingness to buy.