THE RELATIONSHIP BETWEEN DEMOGRAPHIC FACTORS AND INVESTMENT DECISION IN SURABAYA
ABSTRACT: The financial
literature supports an increasing role for behavioral aspects of investment decision
making. Among other factors, demographic factor may influence investors’ risk tolerance
and investment preferences. This paper explores the relationship between
demographic factors, such as gender, age, marital status, education, income,
and family members, and investor’s risk tolerance as well as investment
preference. First of all, it attempts to reveal the relationship between
investor’s demographic factors (gender, age, marital status, education, income,
and number of family) and investor’s risk behavior (risk seeker, risk averse.
Secondly, it tries to see the relationship between investor’s demographic
factors (gender, age, marital status, education, income, and number of family)
and types of investment (bank products, capital market instruments, and
physical assets). Finally, it endeavors to uncover the relationship between
investor’s demographic factors (gender, age, marital status, education, income,
and number of family) and types of investment (bank products, capital market
instruments, and physical assets). Using a sample of 84 investors in Surabaya, this
study shows that demographic factors explain investor’s risk tolerance and
investment preference. The results also reveal a significant relationship
between investors’ risk tolerance and their investment preferences.
Author: Lutfi
Journal Code: jpakuntansigg100021
