Factors Influencing Investor Share Purchase Behaviour In South Africa

Abstract

The recent turmoil in the world’s equity markets has led many individuals to be concerned with equities as an investment option. However equities remain an important part of any individuals retirement planning. Despite the importance of individual investment decisions, little is known about the factors that influence them. This study identifies characteristics that are important to individual retail investors using traditional conjoint analysis and ranks them according to their relative importance. Cluster analysis and discriminant analysis are used to identify subgroups with different attitudes and approaches to equity investing. Four groups were identified in the sample each with distinctly different investment approaches and goals. The results have implications for providers of financial services to individual retail investors and also for those involved in educating individual retail investors