Defining Investment Decision Making in the Stock Market: A Literature Review

Abstract

Investment Decision Making (IDM) is closely related to the important role of stocks in the national economy. Investment decision-making becomes a research topic that is studied by researchers with various research designs. However, through initial observations, it was found many theoretical frameworks define investment decision-making. This article aims to define stock investment decision making including theoretical frameworks and their paired variables. A Systematic Literature Review (SLR) with data analysis using excel and NVivo 12 was employed as the research method. Accordingly, the results show that various definitions of IDM were used by researchers and most of which define it as IDM rational activity with varied underlying theories that were mostly based on the bounded rationality theory and determined by their paired variables.