Financial Risk Management
Factors Influencing the Investment Behavior of Women Investors: An Empirical Investigation

Article Details
Pub. Date : Dec, 2019
Product Name : The IUP Journal of Financial Risk Management
Product Type : Article
Product Code : IJFRM31912
Author Name : Sanjeet Kumar and Prashant Kumar
Availability : YES
Subject/Domain : Finance Management
Download Format : PDF Format
No. of Pages : 21

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Abstract

Women are now financially independent and actively participate in investing their savings by analyzing the various factors such as degree of risk associated with investment, influence of family members and friends, and the capability of investing in modern and innovative investment avenues. Thus, it is imperative to study the factors that force women investors to select various investment avenues. It plays a crucial role in determining the behavior of women investors and their disposition effect. Women usually avoid investing their money in stock market due to high volatility in the financial market, lack of adequate knowledge, improper guidance and many other factors. Therefore, it is desirable to analyze the investment behavior of women to check their risk-bearing capacity and factors that affect their behavior because investment behavior of women is an issue of concern across the world. In this study, a survey is conducted to mainly identify the factors that influence the choice of women investors. This study is exploratory in nature and uses primary data collected through a modified questionnaire from 400 women investors based in Haryana region. Using factor analysis, the present study identifies seven factors that influence the investment decisions of women investors. The results reveal that the total variance explained through factor analysis is 86.16% and seven factors are extracted based on eigenvalues. The study labels these factors as sociocultural factors, personal factors, market-related factors, economic factors, investment-specific factors, firm-related factors and accounting information. This would help many researchers and stakeholders to understand how women investors behave while making investment decisions and would especially aid financial institutions to design such products and financial options that can address the needs of women investors.


Description

Today’s women are financially independent and ready to pool their savings in a profitable avenue to maximize their wealth. Women are actively participating in investing their savings by analyzing the various factors such as degree of risk associated with investment, influence of family members and friends and the capability of investing in modern and innovative investment avenues. Investment is the allocation of funds to the profit-generating asset in future. The selection of investment is a difficult task which requires considerable skills and knowledge for analysis of available options. Moreover, a sound investment decision in stock market may lead to higher return and maximum satisfaction. But it seems difficult for people to analyze the various options to find out suitable investment avenues because of lack of awareness as people do not even know where to invest and how much to invest.


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ISBN: 978-81-314-2793-4
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