Factors in Decision Making for Buying and Selling Stocks for Indonesian Diaspora in Qatar

Abstract

This research aims to explore the internal and external factors that influence the stock investment decision-making of the Indonesian diaspora residing in Qatar, with a focus on understanding how these factors impact their achievement of long-term financial goals. Employing a quantitative approach, the study utilizes a structured survey methodology and Structural Equation Modeling (SEM) with the Partial Least Squares (PLS) technique to analyze data collected from purposively sampled Indonesian diaspora in Qatar. The research examines variables such as financial literacy, risk tolerance, market information, social influences, and decision-making processes, considering their mediating roles in the relationship between internal/external factors and financial goal attainment. The findings reveal that both internal factors—particularly financial literacy and self-efficacy—and external factors such as regulatory clarity, transparency, and dividend yield significantly influence the decision making in buying and selling stocks. These internal factors have a positive effect on long-term financial goals, reinforcing the importance of enhancing financial knowledge and behavioral competencies among Indonesian diaspora in Qatar. External factors also play a crucial role by fostering trust and confidence in market environments, which facilitates better investment outcomes. The study concludes that improving internal capabilities through targeted financial education and strengthening external regulatory frameworks can enhance the decision-making processes of Indonesian diaspora in Qatar. Recommendations include developing tailored financial literacy programs for the Indonesian diaspora in Qatar and encouraging supportive policy measures to facilitate access to diversified investment instruments and promoting longitudinal research to track behavioral changes over time. The results highlight the need for a comprehensive, behaviorally informed approach to investment decision-making that aligns internal competencies with external market conditions, ultimately helping investors achieve their long-term financial goals effectively.