Abstract:
Aim of this research is to identify the factors that influences the Sri Lankan’s individual
investor behavior. The study attempts to determine principal factors considered
important by retail investors in choosing an equity share traded in Colombo Stock
Exchange (CSE) and to examine whether there are any significant differences in
these factors across demographic characteristics of respondents. To achieve the
objectives, this study collected a data from a sample of 50 individual investors in the
district of Gampaha through convenience sampling and analyzed them using
Descriptive analysis (Mean, Standard deviation and coefficient of variance) and chisquire
test for examine whether there is any relationship with independent factors and
Demographic factors. The findings of the study reveal that the most important
principal factors influencing retail investors are company past performances,
Company reputation and Stock broker’s advices. Findings also suggest that amount
of importance given to each of the factor significantly differs with at least one
demographic characteristics of sample respondents like gender, age, income and
education. Company earnings and Information from social media differently affect
with age levels. Stock broker’s advices, advice of others are also having varying
impact with gender. On the other hand impact of company reputation, risk reduction,
affordable share price differ with the educational level.
