THE INFLUENCE OF DEMOGRAPHIC FACTORS ON INVESTORS' DECISION TO INVEST IN MANUFACTURING STOCKS – EVIDENCE FROM NIGERIA

ROSEMARY NNEKA IKEOBI, PETER E ARINZE

Abstract


The inability of the Nigerian capital market to more effectively serve as a source of long-term funding for the producing sectors of the economy has been a cause for concern. A number of factors have been found to influence the individual investors' decision to invest in the capital market. One group, demographic factors have been found to determine the type and level of investment an investor makes. The aim of this paper is to determine the influence of demographic factors on individual investors'
decision to invest in the manufacturing stocks in the Nigerian capital market. Primary data obtained through a structured questionnaire administered to 130 respondents were analyzed using simple descriptive techniques which employed frequencies and percentages. Chi-square test was conducted to assess the effect of demographic factors on the proportion of investment held in manufacturing stocks. Findings show limited influence of demographic characteristics on investors' decision to invest in manufacturing stocks. Demographic factors like gender, marital status, employment status, income and years of capital market investing had no significant effect on investor's investment in manufacturing stocks. Only two factors, age and educational qualification had significant effect on investors' investment in manufacturing stocks. These findings should act as a guide to policy makers in coming up with policies aimed at repositioning the Nigerian capital market to mobilize funds more efficiently for investment in the manufacturing sector.

Keywords


Demographic factors, Individual investors, Manufacturing stocks, Nigerian capital market.

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International Journal of Management Science Research ISSN ISSN 2536 – 605X(Print)

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