Validation of the Model of Factors Affecting the Selection of Investment Strategies in Investment Companies
Keywords:
Investment strategies, investment companies, structural equation modeling, financial decision-making, portfolio managementAbstract
This study aimed to validate a comprehensive model of factors influencing the selection of investment strategies in investment companies across causal, contextual, intervening, strategic, and outcome dimensions. The study was applied in nature and employed a quantitative descriptive-survey design. The statistical population consisted of financial experts and investment professionals, from which 30 participants were selected using purposive sampling. Data were collected using a researcher-developed questionnaire with 20 items measuring five main constructs using a five-point Likert scale. Data analysis was conducted using SPSS and SmartPLS software. Reliability was assessed using Cronbach’s alpha and composite reliability, while construct validity was examined through confirmatory factor analysis, average variance extracted (AVE), and the Fornell-Larcker criterion. Structural equation modeling was applied to test the relationships among variables. The results indicated that all structural paths were statistically significant (p<0.05). Causal conditions (β=0.42), contextual conditions (β=0.31), and intervening conditions (β=0.38) had significant positive effects on investment strategies. Investment strategies also had a strong and significant effect on outcomes (β=0.74). Additionally, causal (β=0.29), contextual (β=0.24), and intervening conditions (β=0.27) directly influenced outcomes. The R² values for investment strategies (0.68) and outcomes (0.71) indicated substantial explanatory power, and model fit indices were within acceptable ranges. The findings demonstrate that investment strategy selection is a multidimensional process influenced by the interaction of individual, organizational, and environmental factors, with investment strategies playing a central mediating role in determining performance outcomes.
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Copyright (c) 2025 Arsalan Ahmadali (Author); Faegh Ahmadi (Corresponding author); Seyed Nima Valinia , Morteza Bavaghar (Author)
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
