Unlocking the secrets of stock market investment behaviour: A comparative study among rural and urban investors in an emerging economy

Jitender Kumar, Manju Rani, Garima Rani and Vinki Rani

Studies in Economics and Econometrics, 2025, vol. 49, issue 2, 178-194

Abstract: This paper aims to determine how investors’ financial planning and investment intention mediate the relationship between attitude and investment behaviour in the stock market. This research contains two cross-sectional surveys on 386 rural (R) and 392 urban (U) investors through “partial least square-structural equation modelling (PLS-SEM)”. The outcomes exhibited that social influence significantly influences whereas perceived risk insignificantly influences financial attitude in both studies. Further, financial knowledge significantly influenced the financial attitude in Study U; however, it insignificantly influenced Study R. Further, the results exhibited that there is a substantial association exist between financial attitude, financial planning, investment intention and investment behaviour in both studies. Based on cumulative prospect theory, this unique and timely research contributes in the prior literature by delivering an in-depth understanding of why investors are hesitant to invest in stock market. The current article extends the academic literature with new conceptual insights that researchers have not studied earlier in developing nations.

Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:taf:rseexx:v:49:y:2025:i:2:p:178-194

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DOI: 10.1080/03796205.2024.2441826

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