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Individual investors’ stock buying behavior: Does experience matter in a developing economy stock market

Osaro Agbontaen and Enase Okonedo

No 7104, EcoMod2014 from EcoMod

Abstract: Investigate how retail investors determine their stock trading through experience to achieve the desired portfolio returns. To examine how retail investors coordinate their expected returns and perceived risk. Verify how retail investors’ trade potentials augment transactions on the stock market in a developing economy. Ascertain how retail investors’ forecasting ability is influenced by their trading experiences. Disclose how experience aids the prospects of trade performance and deduces how retail investors adjust their risk trading behavior.Fixed regression modelThe results obtained revealed that experience do not strongly dictate retail investors’ willingness to carry out a purchase on the stock market but experience is essential for stock sales transactions. We obtained evidences that it influences trade quality. Overconfidence in trading was noticed to influence retail investors’ transactions on the stock market. Subsequently, they adjusted their possibilities to trade which in turn enhanced their prospects to trade off their investments.

Keywords: Nigeria; Finance; Developing countries (search for similar items in EconPapers)
Date: 2014-07-03
New Economics Papers: this item is included in nep-fmk
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