Driving Forces of Individual Investors in Stock Market Participation

Abstract

The purpose of this study is to estimate the impact of sociocultural factors on investors' behavior in the South Pacific Stock Market (SPX) participation in Fiji using a novel methodological framework. We constructed a higher order factor: Individual investors' willingness to participate in the SPX by confirming second-order Factor Structure and Overall Model Fit of the underpinning socioeconomic, cultural and psychic motivating factors thereof. The theoretical framework is primarily based on the Theory of Planned Behavior (TPB). Four dimensions were hy-pothesized: Attitudes, Perceived Power, Social Norms, and Financial Knowledge, and showed significant and sub-stantial loadings towards the investment willingness, with an acceptable model fit. The results confirm that four hy-pothesized dimensions are identifiable and distinct aspects; Social Norms dimension showed significant positive as-sociation (β =.159, p