Vol. 7 No. 1 (2020)
Articles

The Influence of Demographic Factors on Investment Behaviour of Individual Investors: A Case Study of Edo State, Nigeria

Agbo, Ezekiel
Department of Economics, Faculty of Social Sciences, University of Benin, Benin City, Edo, Nigeria.
Abu, Prince Oshoke
Department of Economics, Faculty of Social Sciences, University of Benin, Benin City, Edo, Nigeria.

Published 2020-07-02

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Keywords

  • Demographic factors, Individual investors’ Behaviour, Multinomial Logit Equations.

How to Cite

Ezekiel, A., & Oshoke, A. P. (2020). The Influence of Demographic Factors on Investment Behaviour of Individual Investors: A Case Study of Edo State, Nigeria. Economy, 7(1), 69–77. https://doi.org/10.20448/journal.502.2020.71.69.77

Abstract

This study empirically examines the influence of demographic factors on investment behaviour of individual investors using Edo state, Nigeria as its case study. Using the maximum likelihood method of estimation to estimate four multinomial logit equations, the results showed that educational level, occupation and marital status are the main demographic determinants of individual investors’ behaviour. Also, age and gender have strong influences on individual investor’s risk preference. Therefore, we recommend that it is pertinent that macroeconomic policies aimed at boosting investment should consider the expansionary effect of targeting civil servants and those in professional practice by providing them with investment incentives as these categories of persons have a much higher affinity for risk for investment purposes.

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