Investment Decisions in Emerging Market: Demographic Analysis of Individual Investor in Indonesia Stock Exchange

David Nathanael Sutyanto (), Noer Azam Achsani (), Roy Sembel () and Trias Andati ()

Asian Economic and Financial Review, 2022, vol. 12, issue 2, 99-120

Abstract: The number of individual investors in Indonesia has continued to grow in recent times and has reached 97.67% of the total investors in Indonesia. Due to this high number, the investment decisions of individual investors should be an important benchmark in the movement of Indonesia’s capital market. Investment behavior between individuals is very different and easy to change, but there is a pattern or model that can provide an overview of the activities carried out. Not only psychological factors, but demographic factors are also suspected to be determinants that influence investors’ decisions. The diversity of investment behaviors can be described by stock ownership. In Indonesia, blue-chip stocks are represented in the LQ45 index group. Although investors have different characteristics, their demographics are often used as second references to determine investment behavior. This study aims to determine the investment behavior using four important inherent characteristics of investors including gender, age, occupation, and income. The secondary data obtained from 3,911 investors were analyzed using analysis of variance (ANOVA). The results showed a unique pattern of investment behavior; therefore, the demographics of investors need to be analyzed regularly.

Keywords: ANOVA; Demographics; Investment behavior; Individual investor. (search for similar items in EconPapers)
Date: 2022
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