scholarly journals Determinants of Investment Decisions on the Capital Market

e-Finanse ◽  
2018 ◽  
Vol 14 (2) ◽  
pp. 1-8
Author(s):  
Magdalena Jasiniak
Keyword(s):  
Personality Traits ◽  
Capital Market ◽  
Capital Investment ◽  
Investment Decisions ◽  
Nationwide Survey ◽  
Individual Characteristics ◽  
Unit Price ◽  
Individual Investors ◽  
Psychological Determinants ◽  
The Capital Market

AbstractThe article deals with the psychological determinants of investment decisions made by an individual investor on the capital market. The purpose of this article is to try to assess the relationship between capital involvement and selected personality traits and how individuals perceive investments in securities of different nominal unit price. The author attempts to verify whether specific price thresholds affect respondents in a similar way as prices of goods and services to customers, in the context of capital investment. The results of the nationwide survey of 564 individual investors are based on analyses using the model of the willingness to invest in shares with a specific nominal value compared to the individual characteristics of the respondents. The results of the study indicate a significant relationship between personality traits and the tendency to choose stocks with relatively low or very high denomination (current transaction price).

Impact of Personality Traits on Risk Tolerance and Investors' Decision Making

2019 ◽  
Vol 8 (1) ◽  
pp. 1-20 ◽  
Author(s):  
Misbah Sadiq ◽  
Hareem Amna
Keyword(s):  
Personality Traits ◽  
Big Five ◽  
Descriptive Analysis ◽  
Investment Decisions ◽  
Risk Tolerance ◽  
Primary Data ◽  
Individual Investors ◽  
Confirmatory Factor ◽  
The Relationship ◽  
Practical Implications

This article investigates the relationships between personality traits, risk tolerance, and investment decisions and highlights the importance of personality traits in determining risk tolerance levels and investment decisions. Personality traits are classified according to the Big Five taxonomy: extroversion, agreeableness, conscientiousness, neuroticism and openness to experience. Primary data was collected from 330 individual investors from Islamabad. Descriptive analysis of the data was run on SPSS, reliability of the constructs was assessed through Confirmatory Factor Analysis (CFA), whereas, Structural Equational Modelling (SEM) was used to conduct hypothesis testing through path analysis. As per the results of CFA, the constructs were found to be reliable. Mediation analysis confirmed that risk tolerance partially mediated the relationship between personality traits and investment decisions. This study and results have theoretical and practical implications for the investors, financial planners and managers.

scholarly journals Factors Influencing Investment Decisions in Capital Market: a Study of Individual Investors in Nigeria

2013 ◽  
Vol 4 (1) ◽  
pp. 141-161 ◽  
Author(s):  
Tomola Marshal Obamuyi
Keyword(s):  
Influencing Factors ◽  
Capital Market ◽  
Investment Decisions ◽  
Individual Investors ◽  
Past Performance ◽  
Test Analysis ◽  
Factors Influencing ◽  
Leadership Crisis ◽  
Corporate Earnings ◽  
Post Hoc

The study seeks to determine the main factors influencing investment decisions of investors and how these factors are related to the investors’ socio-economic characteristics in the Nigerian Capital Market. The study covers individual investors using convenient sampling method to obtain information from 297 respondents through a modified questionnaire developed by Al-Tamimi (2005). Independent t- test, Analysis of variance (ANOVA) and post hoc tests were employed. The results indicate that the five most influencing factors on investment decisions of investors in Nigeria are past performance of the company’s stock, expected stock split/capital increases/bonus, dividend policy, expected corporate earnings and get-rich-quick. Also, the five least influencing factors include religions, rumors, loyalty to the company’s products/services, opinions of members of the family and expected losses in other investments. The study finds that the socio-economic characteristics of investors (age, gender, marital status and educational qualifications) statistically and significantly influenced the investment decisions of investors in Nigeria. With regard to the past performance of the company’s stock as an assessing factor, groups of investors statistically differed in factor assessment, as segments of a group considered the factor as the most important/unimportant. Since the identified most influencing factors are usually classified as wealth maximising factors, the study recommends that the investment climate and the market environment be made friendly and conducive to attract investors by creatively developing programmes and policies that impact on investors’ decisions in order to maximise the value of the firms and enhance the wealth of the investors. The market players should re-organise the market and implement accommodating policies which will eliminate fraud and resolve the leadership crisis in the market.

scholarly journals Capital Markets in India: A Conceptual Framework

2019 ◽  
Vol 8 (1) ◽  
pp. 53-59
Author(s):  
Harish Tigari ◽  
R Aishwarya
Keyword(s):  
Capital Market ◽  
Capital Investment ◽  
18Th Century ◽  
Wealth Distribution ◽  
Secondary Data ◽  
Stock Exchanges ◽  
Indian Government ◽  
New Economic Policy ◽  
East Indian ◽  
The Capital Market

The history of Indian capital market goes back to the 18th century when the securities of East Indian company was traded. The contribution of Indian capital market for the sustainability of Indian economy is considerably since the year 1890’s. The capital market plays a   role in terms of wealth distribution and economic development of a country like India.  Capital market acts as a transformer of savings into capital investment. The capital market has witnessed a major reforms since the implementation of New Economic Policy 1991 and thereafter. The Indian government and SEBI have adopted the various reforms in order to enhance the performance of Indian stock exchanges. The present study tries to analyze the recent reforms in Indian capital market from the year 2010 onwards. The present research is largely based on the secondary data.  The statistical facts and figures regarding the growth and development of the capital market was available from various journals, publications and websites.

scholarly journals THE ALBANIAN ECONOMY IN THE STOCK MARKET PERSPECTIVE

2019 ◽  
Vol 31 (1) ◽  
pp. 149-155
Author(s):  
Bajram Lamaj ◽  
Stefan Simeonov
Keyword(s):  
Interest Rates ◽  
Capital Market ◽  
Banking Sector ◽  
Stock Exchange ◽  
Banking System ◽  
Financial System ◽  
Economic Benefits ◽  
Stock Index ◽  
Individual Investors ◽  
The Capital Market

Since the origin of the capitalist economic system, Albania suffers from a shrinking financial system. The financial system lacks what is perhaps the most important and dynamic part in developed economies: a capital market. It is an important element for the country's economic and financial development, as it is a very competitive alternative to the banking sector, reducing intermediation costs for businesses and all economic operators by enabling cheaper alternatives to fund the activity. Today, the banking system has almost exhausted opportunities to be a business financing promoter. And this is the stage where the Albanian economy has come to. Businesses cannot meet all the financing needs of the banking system, while on the other hand, there are individuals who, at the moment, have little choice of investment of their savings. Interest rates, both for bank deposits and government securities, have already reached an extremely low level and are not at all attractive for individual investors, which makes them look for far more attractive investment alternatives. In this way the scholarship will bring an alternative that individuals can invest savings in shares or other securities of companies that will be interested in trading in Albania thus developing the capital market and taking advantage of all the economic benefits that it brings. In this paper, we will firstly address the concept of the capital market and the elements that shape it as well as its development in Albania. The main purpose of this paper is to identify the problems faced by Tirana's former scholarship, to study the situation and the current opportunities of the Albanian economy to develop this structure of the capital market, namely the stock exchange, and to create a stock index model with which Albania can develop this structure and why not be represented in the regional and international markets.

scholarly journals Keputusan Investasi Saham Dengan Pendekatan Price Earning Ratio Pada Perusahaan Rokok yang Terdaftar di Bursa Efek Indonesia

2020 ◽  
Vol 7 (1) ◽  
pp. 32-36
Author(s):  
Seno Hadi Saputro ◽  
Kartika Yuliantari
Keyword(s):  
Quantitative Analysis ◽  
Capital Market ◽  
Sampling Method ◽  
Applied Research ◽  
Stock Exchange ◽  
Investment Decisions ◽  
Purposive Sampling ◽  
Stock Investment ◽  
Ratio Approach ◽  
The Capital Market

Investing in the capital market is one way to improve investor welfare in the future. Investors invest in the capital market to benefit from the funds invested sourced from businesses that have funds. This study aims to analyze stock investment decisions with the Price Earning Ratio approach to cigarette companies listed on the Indonesian stock exchange. This type of research is applied research (Applied Research) with descriptive quantitative analysis. In this study, sampling was conducted based on purposive sampling method with sample criteria, namely companies listed on the Indonesia Stock Exchange from December 2015 - September 2019 and showed positive profits from December 2015 - September 2019. The results of this study are warehouses Garam Tbk, HM Sampoerna Tbk and Wismilak Inti Makmur Tbk are in an Undervalued condition and if the company is in these conditions it is recommended to buy these shares or if they already have can add to their shares. Keywords: stock investment, Price Earning Ratio, cigarette company

scholarly journals Capital Market Linkage to Economic Growth in Nepal

2020 ◽  
Vol 4 (1) ◽  
pp. 43-56
Author(s):  
Jhabindra Pokharel
Keyword(s):  
Economic Growth ◽  
Capital Market ◽  
Time Series Data ◽  
Secondary Market ◽  
Market Development ◽  
Series Data ◽  
Individual Investors ◽  
Fair Price ◽  
Market Capitalization ◽  
The Capital Market

This article examines the causal relationship between capital market development and economic growth in Nepal using annual time series data from 1994-2019. Total market capitalization is used as a proxy of secondary market development and the total public issue of securities in a particular year is taken as an indicator of primary market development. Using the Johansen cointegration test and vector error correction method (VECM) in regression analysis, the study reveals that capital markets in Nepal are supporting economic growth through efficient fundraising, efficient allocation of resources, fair price determination and liquidity. The findings from this study conclude that there is a unidirectional causality running from capital market development to economic growth in both the long-run and short-run. However, this study found no support for causality running from economic growth to the capital market. Therefore, the findings from this study recommend policies that increase the reach of the capital market to small and medium enterprises (SMEs) and individual investors. Keywords: capital market, market capitalization, primary market, economic growth, Nepal

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