Impact of Demographic Characteristics on Investment Amount: A Study on the general Investors of Dhaka Stock Exchange, Bangladesh

Abstract

The purpose of this paper is to examine the association between demographic characteristics of general investors such as age, education level, occupation, experience and income level and the stock market investment amount. Survey techniques have been applied on a sample size of 300 general investors selected from Dhaka Stock Exchange and the average amount of investment per year has been determined from the structured questionnaire. The frequency table was used to demonstrate how many investors made this particular investment. To identify whether there is any interaction between two demographical characteristics on the yearly average investment amount of the investors two-way ANOVA test was employed. Results indicate that selected demographic characteristics make difference in the average amount of investment in different types of shares. The paper explores for the first time the link between demographic characteristics and investment amount of general investors. This study provides notable insights towards the understanding of stock investment made by general investors having different demographic characteristics.

Keywords: demographic characteristics, investors, investment amount, stock market