Investment decision is one of the core activities that operates the company. The investment
decision did not limit into purchasing of securities and shares but the hiring of the
employees within the company. To accomplish a successful investment decision, we must
consider all the factors that affect the situation. The study was done driven by the
emergence of socially responsible investment movement. Nowadays, the investors also
looking into other factors while making investment decision such as heuristics (a mental
alternate route that enables individuals to settle on choices and take care of issues rapidly
and efficiently), risk attitude, uses of financial tools and targeted firm’s corporate
governance. A set of established questionnaires being distributed to the 140 investmentrelated
public listed companies in Malaysia in this study. Based on the findings, there is
high level of effectiveness of investment made by the company. There is also positive
relationship between heuristics, risk aversion, use of financial tools and targeted company’s
corporate governance with the investment decision. The targeted company’s corporate
governance was recognized as the most significant factor that influences the effectiveness
of investment decision. This study beneficial especially for financial practitioner and could
be useful for educational purpose.
