The impact of cognitive factors on individuals’ financial decisions

Marhanum Che Mohd Salleh, Mohammad Abdul Matin Chowdhury, Ahmad Fawwaz Bin Mohd Nasarudin, Ririn Tri Ratnasari

Research output: Contribution to journalArticlepeer-review

2 Citations (Scopus)


The objective of this paper is to examine the effect of cognitive factors which are financial knowledge, herding behaviour and financial planning towards individuals’ financial decisions. A total of 173 survey data were collected from university staff consisting of administrative and academic members. This research adopted a quantitative methodology for data collection as well as data analysis. Multiple regression analysis was used to examine the effect of cognitive factors towards the dependent variable which is financial decision. Results indicate that only two cognitive variables which are financial knowledge and financial planning have a significant effect toward financial decisions. Herding behaviour was found to insignificantly effect the individual financial decision process. Results of this research would be of significance to proof that other than external factors, internal factors which are cognitive elements are crucial in influencing individual financial decisions.

Original languageEnglish
Pages (from-to)69-88
Number of pages20
JournalManagement and Accounting Review
Issue number3
Publication statusPublished - Dec 2020


  • Cognitive factor
  • Financial decision
  • Financial knowledge
  • Financial planning
  • Herding behaviour


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