Factors Influencing Stock Market Investment Behavior of Management Students

Abstract

This study examines the factors influencing stock market investment behavior of management students, emphasizing financial literacy, savings, investment information sources, peer influence, and risk perception. An explanatory cross-sectional research design has been used. Primary data were collected from 406 management students through a structured questionnaire. The sample size was determined using Cochran's (1963) formula and respondents were selected through purposive sampling techniques. The descriptive analysis, reliability test, validity test, correlation, and multiple regression were employed to analyze the data. The results indicated that savings behavior, investment information sources, peer influence, and risk perception have significant positive effects on investment behavior; on the other hand, financial literacy has no significant effect. Among all explanatory variables, risk perception was found to be the most influential predictor of investment behavior. The explanatory ability of the regression model is good at 79.0%. It can be inferred from the study that the investment behavior of management students depends on behavioral, information-based, and social factors rather than their financial knowledge. This study could be helpful to management students for investment decision to devise strategies to enhance awareness about stock market investment behavior.