IDEAS home Printed from https://ideas.repec.org/h/spr/prbchp/978-3-030-73667-5_4.html
   My bibliography  Save this book chapter

Factors Influencing Individual Investor Participation in Stock Market

In: Contemporary Trends and Challenges in Finance

Author

Listed:
  • Dorika Jeremiah Mwamtambulo

    (Wroclaw University of Economics and Business)

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.

Suggested Citation

  • Dorika Jeremiah Mwamtambulo, 2021. "Factors Influencing Individual Investor Participation in Stock Market," Springer Proceedings in Business and Economics, in: Krzysztof Jajuga & Hermann Locarek-Junge & Lucjan T. Orlowski & Karsten Staehr (ed.), Contemporary Trends and Challenges in Finance, pages 57-74, Springer.
    • Handle: RePEc:spr:prbchp:978-3-030-73667-5_4
    DOI: 10.1007/978-3-030-73667-5_4
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:prbchp:978-3-030-73667-5_4. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.