IIARD International Institute of Academic Research and Development

INTERNATIONAL JOURNAL OF ECONOMICS AND FINANCIAL MANAGEMENT (IJEFM )

E-ISSN 2545-5966
P-ISSN 2695-1932
VOL. 10 NO. 4 2025
DOI: 10.56201/ijefm.v10.no4.2025.pg33.57

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Determinants of Investment Behaviour in The Nigerian Stock Market: Survey of Households in Nigerian Universities in Abia State, Nigeria

Ogbulu, Onyemachi Maxwell. & Uruakpa, Peter Chinyere

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Abstract

The capital market plays a vital role in mobilizing long-term funds from surplus units and channeling the same to deficit units to boost investment in real physical assets, thereby leading to sustained economic growth and poverty alleviation. However, how efficient and effective the capital market is in discharging this all-important function of fund mobilization depends on whether capital market operators understand and identify the parameters and factors that influence and shape the investment behavior and actions of surplus units in the economy. The objective of this research project was to examine and identify the factors that influence the investment behavior of households in the Nigerian University Communities with emphasis on Universities in Abia State namely, Abia State University, Uturu (ABSU) and Michael Okpara University of Agriculture, Umudike (MOUA). Data for the project were sourced from a sample of households in Abia State University, Uturu and Michael Okpara University of Agriculture, Umudike using structured questionnaire. The data analysis techniques employed for the project include descriptive statistics, correlation and regression analysis, and factor analysis. Based on the analysis of the research using different analytical techniques, the findings of the research reveal, among others, that (i) Corporate earnings have a positive and significant influence on the behaviour of households in taking share investment decisions, (ii) Declared corporate dividends positively influence the behaviour of households in making decisions concerning investment in shares. (iii) Past trends in stock prices positively influence the behaviour of existing and potential shareholders. (iv) A person’s attitude to risk negatively influences the person’s behaviour towards share investment. (v) a negative but insignificant relationship exists between household income and share investment (x) a positive but insignificant relationship exists between gov

keywords:

stock market, shares, investment determinants, investment behaviour, financial institutions

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