FACTORS INFLUENCING INVESTMENT DECISIONS IN CAPITAL MARKET: A STUDY OF INDIVIDUAL INVESTORS IN NIGERIA (original) (raw)

e study seeks to determine the main factors in uencing investment decisions of investors and how these factors are related to the investors' socioeconomic characteristics in the Nigerian Capital Market. e study covers individual investors using convenient sampling method to obtain information om 297 respondents through a modi ed questionnaire developed by Al-Tamimi (2005). Independent t-test, Analysis of variance (ANOVA) and post hoc tests were employed. e results indicate that the ve most in uencing factors on investment decisions of investors in Nigeria are past performance of the company's stock, expected stock split/capital increases/bonus, dividend policy, expected corporate earnings and get-rich-quick. Also, the ve least in uencing factors include religions, rumors, loyalty to the company's products/services, opinions of members of the family and expected losses in other investments. e study nds that the socioeconomic characteristics of investors (age, gender, marital status and educational quali cations) statistically and signi cantly in uenced the investment decisions of investors in Nigeria. With regard to the past performance of the company's stock as an assessing factor, groups of investors statistically di ered in factor assessment, as segments of a group considered the factor as the most important/unimportant. Since the identi ed most in uencing factors are usually classi ed as wealth maximising factors, the study recommends that the investment climate and the market environment be made iendly and conducive to a ract investors by creatively developing programmes and policies that impact on investors' decisions in order to maximise the value of the rms and enhance the wealth of the investors. e market players should re-organise the market and implement accommodating policies which will eliminate aud and resolve the leadership crisis in the market.

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