The Role of Emotional Intelligence in Risk Perception of Financial Market Players: A Systematic Review

Nauval Habibulloh; Iswinarti

doi:10.59890/ijels.v3i4.17

Authors

Nauval Habibulloh Universitas Muhammadiyah Malang
Iswinarti Universitas Muhammadiyah Malang

DOI:

https://doi.org/10.59890/ijels.v3i4.17

Keywords:

Emotional Intelligence, Risk Perception, Investment, Cryptocurrency, Behavioral Finance

Abstract

In recent decades, the rapid development of the global economy has brought significant changes in investment decision-making. Emotional Intelligence (EI) and Risk Perception have become increasingly important factors in the context of investment, especially in the volatile cryptocurrency market. This study aims to explore the relationship between EI and risk perception in investment decision-making in the cryptocurrency market through a systematic review. Using the SPIDER method, this study collected and analyzed 14 relevant journals from various academic databases. The results showed that individuals with high EI tend to have more rational risk perceptions, which results in wiser investment decisions. In contrast, individuals with low EI are more prone to cognitive biases and impulsive decision-making. This study contributes to the behavioral finance literature by highlighting the importance of EI in managing risk and optimizing investment strategies. The implications of this study include the need for financial education that focuses on strengthening EI to improve the quality of investment decisions in an uncertain market.

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