Decision Factors Affecting Investing Activities in the Equity Market

Abstract

This study aims to assess the extent of influence of the factors on equity market investment decisions. Specifically, it attempts to answer the following questions: a) profile of the respondents; b) the respondents’ assessment of the factors on equity market investment decisions when they are grouped according to Personal Factors, Company, and Industry Factors, and Economic Factors; and c) significant difference in the respondents’ assessment of the factors on equity market investment decisions when they are grouped according to profile. The target respondents of the study were the individual online investors of the Philippine equity market. A total of 395 respondents were surveyed using the non-probability sampling technique. Based on the results, most of the respondents were 18 to 30 years old, female, single, bachelor’s degree graduates, earning P20,000 or less per month, private employees, investing in both blue and non-blue chip stocks for 1 to 3 years, and were attending less than 4 trainings/seminars per year. The study also determined that the top 3 decision factors by order of influence were Investment Objective, Past Performance, and Interest Rate. The results assume that these online investors are using the Bottom-up Approach in their investment analysis. Certain recommendations were drawn for Stockbrokerages or Trading Participants, Philippine Stock Exchange, Bangko Sentral ng Pilipinas, government agencies, and private companies to address the issues revealed in the study.