Open AccessSocio-Demographics Characteristics on Investment Objectives of Individual Investors: Empirical Study in Indonesia
Author(s) -
Nevi Danila,
Zaiton Ali,
Bunyamin Bunyamin,
D K Marlinda
Publication year - 2019
Publication title -
journal of accounting-business dan management/journal of accounting, business and management
Language(s) - English
Resource type - Journals
eISSN - 2622-2167
pISSN - 0216-423X
DOI - 10.31966/jabminternational.v26i2.410
Subject(s) - business , investment (military) , order (exchange) , finance , demographics , government (linguistics) , investment decisions , test (biology) , unit investment trust , open ended investment company , return on investment , economics , behavioral economics , linguistics , philosophy , demography , sociology , politics , political science , law , macroeconomics , production (economics) , paleontology , biology
Every investor has a unique choice of investment based on customized needs and goals. Each investment has its characteristics. This study investigates the association between socio-demographic characteristics of individual investors and the objectives of the investments. Employing Pearson’s chi-square test with 125 respondents from securities companies in Indonesia, we suggest that the decision of investors in investing their money depends on the association between sociodemographic characteristics and the characteristics of investments' goals. The results of this study can benefit both individual investors and securities firms. For individual investors, this study can be a guideline for them to make an investment decision by considering an investment objective that suits them the most. While for the securities companies, they can market their products to investors appropriately by looking into the demographic factors of the investors and indirectly know the investors’ investments preference. More, the government needs to enhance the infrastructure of the financial sector in order to increase individuals participation in the sector