Socioeconomic Factors Shaping Investor Behaviour: A Stock Market Perspective from Odisha

Abstract

The research question is as follows: To what extent do income level, knowledge level, age, gender, and employment type contribute to influencing the behaviour of retail investors in Odisha in terms of shares' investment frequency, amount, product type, and risk appetite? Through a cross-sectional survey method, a total number of 420 economic investors from the retail group were questioned about shares with the application of a stratified sampling technique. This study analysed four categories: socioeconomic profile, financial literacy, risk appetite, and investment behaviour. Data was analysed using descriptive statistics, one-way ANOVA, an independent sample t-test, χ² tests, and a forward stepwise multiple linear regression. Results depicted income level (β = 0.412), risk appetite (β = 0.318), and educational qualification (β = 0.287) as the three most significant predictors of the frequency of investment (Adjusted R² = 0.471, F = 54.17, p < 0.001). Findings were suggestive of a significant difference between the mean scores in the various types of quantified investments by way of ANOVA (F = 14.62, p < 0.001, η² = 0.095). Major differences in risk appetite due to gender (t = 3.847, p < 0.001, d = 0.421) were severe, while they were significantly observed in the case of income categories (t = 2.615, p = 0.088, d = 0.379). In drawing the conclusion, socioeconomic diversity fashioned a sort of behavioural diversification for investors in Odisha. A kindred financial awareness programme, low-pressure entry-level investment products, and intermediary network-presence policies, all aimed at bridging the existing gap, are some likely interventions for commerce.