Factors Influencing Individual Investor Participation in Stock Market
Dorika Jeremiah Mwamtambulo ()
Additional contact information
Dorika Jeremiah Mwamtambulo: Wroclaw University of Economics and Business
A chapter in Contemporary Trends and Challenges in Finance, 2021, pp 57-74 from Springer
Abstract:
Abstract Modern Portfolio Theory requires individual investors to hold some risky assets in their portfolio. Many of these risky assets are traded in capital markets; hence the expectation for significant participation by individual investors. Evidence has shown this not to be the case; many individual investors around the world are opting to invest in less risky assets. Tanzania, like many countries around the world, is facing the problem of low individual investors’ participation in its capital market. This study aimed at determining the factors behind the low individual investors’ participation in the Dar es Salaam Stock Exchange. Using data collected from 1600 individuals in the country, it is observed that demographic factors of gender, age and education to have insignificant influence on the participation decision of an individual investor. Only those individuals with a risk-taking attitude are willing to participate in capital markets. The properties of companies offering financial products in these markets have a significant influence on the participation decision. Friends, relatives and brokers advice plays a substantial role in the level of participation of individual investors. To increase individual investors’ participation in Tanzania’s capital market, factors of household income, information availability and capital market awareness should be addressed.
Date: 2021
References: Add references at CitEc
Citations:
There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.
Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:spr:prbchp:978-3-030-73667-5_4
Ordering information: This item can be ordered from
http://www.springer.com/9783030736675
DOI: 10.1007/978-3-030-73667-5_4
Access Statistics for this chapter
More chapters in Springer Proceedings in Business and Economics from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().