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Predictors of Investment Decision among Selected Individuals in Key Cities of Laguna: An Extended Theory of Planned Behavior Approach

Year: 2026

Type: article

Abstract: Investment participation in the Philippines remains limited, and decisions to invest are shaped not only by financial capacity but also by evaluative beliefs, risk appraisal, institutional trust, and perceived readiness to engage with capital markets. Guided by an extended Theory of Planned Behavior, this study examined correlates and predictors of investment decision among 483 respondents from Calamba City, Santa Rosa City, and Biñan City, Laguna. A descriptive, cross-sectional design was implemented using an online questionnaire that measured risk tolerance, attitude toward capital markets, knowledge on capital markets (financial literacy), government trust/political climate, attitude toward investment, and self-reported investment decision using a six-point scale. Descriptive results indicated relatively high ratings for risk tolerance (M = 4.81, SD = 1.19) and attitude toward capital markets (M = 4.60, SD = 1.23), moderate capital market knowledge (M = 4.10, SD = 1.32), and comparatively lower government trust (M = 3.85, SD = 1.33). Investment decision differed significantly by sex (p = .002) and by monthly salary bracket (p < .001). Investment decision also showed positive associations with capital market knowledge (r = .210, p = .001) and attitude toward investment (r = .179, p = .003). Stepwise regression identified attitude toward investment (coefficient = 0.345) and monthly salary (coefficient = 0.368) as significant predictors, explaining 16.2% of the variance (R² = 0.162, p < .001). The findings suggest that investment-readiness initiatives should integrate capability-building in capital market knowledge with attitude-focused interventions, while addressing socioeconomic constraints that shape the feasibility of investing.

Source: Journal of Enterprise Strategy and Management Innovation

DOI: 10.65166/a60b0c75

Authors: Liezl Marie Lantin-Magana, Cherry Ann Marie H. Espelita, Cherie Ann Habana, Ramon George O. Atento, Andrea Gwyneth Atento

Institutions: Collins Aerospace (United States), Pamantasan ng Cabuyao, First Asia Institute of Technology and Humanities

Language: English

Topic: Financial Literacy, Pension, Retirement Analysis

Subfield: Accounting

Field: Business, Management and Accounting

Domain: Social Sciences

Open Access status: hybrid

OpenAlex ID: W7129056738

FWCI: 20.43

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Cited by: 1

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