Driving Forces of Individual Investors in Stock Market Participation

(Pages 73-79)

Candauda Arachchige Saliya*
College of Business, Fiji National University, P.O. Box 7222, Nasinu, Fiji.
DOI: https://doi.org/10.55365/1923.x2021.19.08


The purpose of this study is to estimate the impact of sociocultural factors on investors’ behavior in the South Pacific Stock Market (SPX) participation in Fiji using a novel methodological framework. We constructed a higher order factor: individual investors’ willingness to participate in the SPX by confirming second-order Factor Structure and Overall Model Fit of the underpinning socioeconomic, cultural and psychic motivating factors thereof. The theoretical framework is primarily based on the Theory of Planned Behavior (TPB). Four dimensions were hypothesized: Attitudes, Perceived Power, Social Norms, and Financial Knowledge, and showed significant and substantial loadings towards the investment willingness, with an acceptable model fit. The results confirm that four hypothesized dimensions are identifiable and distinct aspects; Social Norms dimension showed significant positive association (β =.159, p <.05) while, more importantly, the Perceived Power dimension showed a highly significant negative association (β = -0.246, p <.01) with investment activities of the participants. These findings may be useful in designing policies and strategies for stimulating the financial market in Fiji, especially, the SPX.


decision making; financial markets; investment culture; judgement; socio-economic environment.

JEL Classification:

B41- Economic Methodology; B26 - Financial Economics; G41- Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making in Financial Markets (Neurofinance).

How to Cite:

Candauda Arachchige Saliya. Driving Forces of Individual Investors in Stock Market Participation. [ref]: vol.19.2021. available at: https://refpress.org/ref-vol19-a8/

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