Why Does Accessing Financial Information on Mobile Devices Lead to Irrational Investment Judgements? Multi-analytic Insights from PLS-SEM and ANN

This study investigates how using mobile phones to access investment-related information leads to a distracted frame of mind, overconfidence bias and confirmation bias, ultimately resulting in irrational investment judgement. The study incorporated the moderation effect of the fear of missing out on investment-related information (I-FoMO). The data were collected from 331 non-professional retail investors and analysed using a multi-analytic, two-staged approach comprising partial least squares structural equation modelling (PLS-SEM) and artificial neural network (ANN). The study identifies a statistically significant positive association of mobile phone usage with a distracted frame of mind and overconfidence bias. Confirmation bias is the most significant predictor of irrational investment judgement. The study also confirms the significant moderating role of I-FoMO in various hypothesized relationships. With their significant implications for rationalizing investment judgement, the study results shed new light on the impact of mobile device use on investment decisions.