The Influence of Demographic Factors on Investment Behaviour of Individual Investors: A Case Study of Edo State, Nigeria

Abstract

This study empirically examines the influence of demographic factors on investment behaviour of individual investors using Edo state, Nigeria as its case study. Using the maximum likelihood method of estimation to estimate four multinomial logit equations, the results showed that educational level, occupation and marital status are the main demographic determinants of individual investors' behaviour. Also, age and gender have strong influences on individual investor's risk preference. Therefore, we recommend that it is pertinent that macroeconomic policies aimed at boosting investment should consider the expansionary effect of targeting civil servants and those in professional practice by providing them with investment incentives as these categories of persons have a much higher affinity for risk for investment purposes.