Enhancing purchasing stock intention in investor–brands interaction: the moderated mediation role of sector knowledge

Abstract

Purpose

This study seeks to investigate the interrelationships among sector reputation, purchasing stock intention, sector engagement and attitude toward the sector. Moreover, it aims to explore the moderating role of sector knowledge in the indirect relationship between sector reputation and purchasing stock intention, mediated by sector engagement and/or attitude toward the sector.

Design/methodology/approach

Drawing upon the theory of planned behavior, the research framework is empirically tested. A survey involving 300 potential and actual investors was conducted, representing individuals investing in tourism brands within the Egyptian stock market. The validity and reliability of the constructs were assessed using AMOS, while Hayes’s PROCESS macro was employed to examine the mediation and moderated mediation effects.

Findings

The findings reveal that sector reputation significantly influences sector engagement, attitude toward the sector and purchasing stock intention. Furthermore, the attitude toward the sector serves as an explanatory factor for investors’ propensity to purchase stocks of tourism brands. The study confirms the serial mediation effect of sector engagement and attitude toward the sector, respectively, in the relationship between sector reputation and purchasing stock intention. Additionally, it confirms the moderated mediation role of sector knowledge in the relationship between sector reputation and purchasing stock intention, mediated by attitude toward the sector.

Practical implications

The research outcomes suggest that executives in the tourism industry should identify key determinants to enhance purchasing stock intention by fostering greater sector engagement and fostering positive attitudes toward the tourism sector.

Originality/value

This study contributes to the existing literature by shedding light on the importance of maintaining a positive brand reputation and emphasizing the influential role of investors’ knowledge, engagement and attitude in shaping investment decisions in the stock market. These insights contribute to the understanding of investor behavior and have practical implications for organizations in managing their brand reputation and fostering positive customer–brand interactions in the stock market context, thus the current study was conducted.

Citation

Ismail, E., Elsharnouby, M.H. and Abd Elaal, M.H. (2024), "Enhancing purchasing stock intention in investor–brands interaction: the moderated mediation role of sector knowledge", Management & Sustainability: An Arab Review, Vol. 3 No. 1, pp. 43-68. https://doi.org/10.1108/MSAR-05-2023-0026