An Empirical Study of Determinants of Investors’ Behaviour in Stock Market

Abstract

This study aims to identify the effect of factors affecting investor choice in Indian Stock Market. The sample size was 200 for balancing the gender and income effect. Reliability test was used to evaluate reliability of scale. Internal consistency test was applied to check the consistency of the questionnaire. Factor Analysis was applied to identify the underlying factor of variables used in study. Exploratory Factor Analysis was applied to check the sampling adequacy. MANOVA analysis of variance was applied to check the relationship between variable investment choices, gender along with Income. Tax constant and valuation, reporting on external and internal environment, expected events, psychological factors, financial statements and time factor, stock value and dividends, institutional holdings, recommendation of the financial community, diversification and ethical issues, international operations, current economic indicators are the factors elicited from factor analysis. MANOVA result confirms that age has significant impact on reporting on external and internal environment and financial statements and time factor and income group has significant impact on expected events.