Abstract
Purpose: This study aimed to identify the investors’ perceptions towards investment decision in stock market of Bangladesh and to compare the identified influential factors with respect to the demographic characteristics of the investors. Methodology: Data have been collected from 160 investors of Dhaka Stock Exchange through structured closed-ended questionnaire designed with 5 point Likert scale having 25 variables. Factor analysis has been used to identify 7 core factors: internal, informational, economic, individual, strength and affordability, goodwill and external factor that are affecting investor’s preferences. Independent Samples t-test, ANOVA and Welch test have been used to identify gender, age, education and income wise differences. Findings: The study found that there were no significance differences in 24 out of 25 variables in terms of gender, 20 out of 25 variables in terms of age, 10 out of 25 variables in terms of education and 23 out of 25 variables in terms of occupation of the investors. Value: Listed companies, authorities and concerned parties in Securities and Exchange Commission and government will be benefited from this study.
Highlights
This study aims to expand knowledge about key factors that affects investment behavior and the ways these factors impact on trading decision making process among people of different age groups, educational background, occupation and income level
Business Review- A Journal of Business Administration Discipline, Khulna University, Volume: 11, Number: 1&2,January-December 2016, pp.67-82 (ISSN 1811-3788). Investors and their perception regarding the identified factors, to determine mostly preferred factors and to examine whether the preference is affected by their gender, age, level of education, occupation and level of income
Capital market is essentially driven by the expectations of the investors
Summary
This study aims to expand knowledge about key factors that affects investment behavior and the ways these factors impact on trading decision making process among people of different age groups, educational background, occupation and income level. The stock market is one of the most important sources for companies to raise money. It is a symbol of the nation’s economy and strength. A country whose stock market is sound and going up is considered to be in great economic status. This is one of the reasons why government, industries and financial institutions always keep track of the stock market trends. The most important factors in their investment decision are crucial because this would shape their future financial plans. Identifying the most important factors on investor’s behavior would affect the required legislation’s and additional procedures needed in order to convince investor’s decisions. Other factors are friends and family suggestions, environmental influence, political risk, government rules and regulations, the impact of information technology and market rumor
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