Behaviour of Investors in the Stock Market: Does Age Matter?

Authors

  •   Karunanithy Banumathy Ph.D. Research Scholar, Department of Commerce, Kanchi Mamunivar Centre for Postgraduate Studies, (Autonomous "A" Grade Centre with Potential for Excellence by UGC), (Government of Puducherry) Pondicherry University, Puducherry - 605 008
  •   Ramachandran Azhagaiah Associate Professor, Department of Commerce, Kanchi Mamunivar Centre for Postgraduate Studies, (Autonomous "A" Grade Centre with Potential for Excellence by UGC), (Government of Puducherry) Pondicherry University Puducherry - 605 008

DOI:

https://doi.org/10.17010/aijer/2014/v3i4/55980

Keywords:

Age Difference

, Behavioural Finance, Investment Decision, Investors' Behaviour, Saving Objective

G02

, G10, G11

Paper Submission Date

, September 29, 2013, Paper sent back for Revision, February 5, 2014, Paper Acceptance Date, April 17, 2014.

Abstract

Most financial theories are based on the concept that individuals act rationally and consider all available information in the decision-making process. Behavioural finance is the study of the methodical errors made by market participants due to psychological biases. The primary objective of the study was to look at the behaviour of investors among different age groups. This paper investigated how investors in the young, middle, and old age groups differed in their investment behaviour. A survey of 100 investors from Pondicherry was conducted through personal interviews with the help of a structured questionnaire. The data were analyzed using the Kruskal-Wallis H Test and F test. The study proves that there is a significant difference between the age group of the investors with respect to their saving objectives, experience, and proportion of investment. The study concludes that there existed significant differences between the investors belonging to different age groups, and particularly, investors in the young and old age groups differed while making investments in the stock market.

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Published

2014-08-01

How to Cite

Banumathy, K., & Azhagaiah, R. (2014). Behaviour of Investors in the Stock Market: Does Age Matter?. Arthshastra Indian Journal of Economics & Research, 3(4), 7–16. https://doi.org/10.17010/aijer/2014/v3i4/55980

Issue

Volume 3, Issue 4, July-August 2014

Section

Articles
Crossref
Scopus
Google Scholar
Europe PMC

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