Factors Affecting Investors’ Perception towards Investment in Stock Market in Bangladesh: A Study on Investor’s of Khulna City

Abstract

Purpose: This study aimed to identify the investors’ perceptions towards investment decision in stock market of Bangladesh and to compare the identified influential factors with respect to the demographic characteristics of the investors.
Methodology: Data have been collected from 160 investors of Dhaka Stock Exchange through structured closed-ended questionnaire designed with 5 point Likert scale having 25 variables. Factor analysis has been used to identify 7 core factors: internal, informational, economic, individual, strength and affordability, goodwill and external factor that are affecting investor’s preferences. Independent Samples t-test, ANOVA and Welch test have been used to identify gender, age, education and income wise differences.
Findings: The study found that there were no significance differences in 24 out of 25 variables in terms of gender, 20 out of 25 variables in terms of age, 10 out of 25 variables in terms of education and 23 out of 25 variables in terms of occupation of the investors.
Value: Listed companies, authorities and concerned parties in Securities and Exchange Commission and government will be benefited from this study.