Has financial attitude impacted the trading activity of retail investors during the COVID-19 pandemic?

Financial attitude influences the financial behavior of retail investors. Although the extant research has acknowledged and examined this relationship, the measures of financial attitude and behavior still vary widely and are generally posed as a series of questions rather than statements. In addition to this, there is insufficient knowledge regarding retail investors' behavior in the face of a health crisis, such as the current COVID-19 pandemic. This study addresses these gaps in the prior literature by examining the relative influence of six dimensions of financial attitude, namely, financial anxiety, optimism, financial security, deliberative thinking, interest in financial issues, and needs for precautionary savings, on the trading activity of retail investors during the pandemic. Data were collected from 404 respondents and analyzed using the artificial neural network (ANN) method. The results revealed that all six dimensions had a positive influence on trading activity, with interest in financial issues exerting the strongest influence, followed by deliberative thinking. The study thus contributes important inferences for researchers and managers.

Automated summary

This study examined the influence of financial attitudes on the trading activity of retail investors during the COVID-19 pandemic using artificial neural network analysis. Results showed that all six dimensions of financial attitude positively influenced trading activity, with interest in financial issues and deliberative thinking exerting the strongest influence. The findings provide important insights for researchers and managers in understanding investor behavior during health crises.