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Socio-demographic characteristics of investors in the Warsaw Stock Exchange – How they influence the investment decision

Author

Listed:
  • Agata Kliber

    (Poznan University of Economics, Department of Applied Mathematics)

  • Blanka Let

    (Poznan University of Economics, Department of Applied Mathematics)

  • Aleksandra Rutkowska

    (Poznan University of Economics, Department of Applied Mathematics)

Abstract

The aim of the study was to investigate how age, gender, experience and education influence the investment decisions of individual investors in the Warsaw Stock Exchange. The source of data were two surveys sent to individual investors through the Polish Association of Individual Investors. In order to assess the significance of the given characteristics, we estimated a series of ordered logit regression models. Based upon the obtained answers and our estimations, we conclude, inter alia, that the Polish female investors typically have higher risk aversion and they trust the expert opinion, while the men are more likely to take risk. Less educated investors are also more eager to take higher risk, while the less experienced ones are more risk-averse. Unlike the more experienced market participants, they tend to estimate the risk of their portfolio through standard deviation or expected shortfall and use technical analysis more often.

Suggested Citation

  • Agata Kliber & Blanka Let & Aleksandra Rutkowska, 2016. "Socio-demographic characteristics of investors in the Warsaw Stock Exchange – How they influence the investment decision," Bank i Kredyt, Narodowy Bank Polski, vol. 47(2), pages 91-118.
    • Handle: RePEc:nbp:nbpbik:v:47:y:2016:i:2:p:91-118
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    References listed on IDEAS

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    More about this item

    Keywords

    Warsaw Stock Exchange; individual investment; investment style;
    All these keywords.

    JEL classification:

    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
    • G02 - Financial Economics - - General - - - Behavioral Finance: Underlying Principles
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis

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