Individual’s Investment Decisions in the Muscat Security Market (MSM), Oman

Abstract

Purpose

The objective of the study is to investigate the influence of the personal factors, economic factors, and social factors of individual investors at MSM, from different demographic backgrounds such as age, gender, education.

Design/methodology/approach

A random sampling method was used and 100 samples were collected from the totality of investors at MSM, and interviews were also conducted with the brokers from different financial companies.  The data was concerning each of the three factors –personal, social, and economic that affect the individual investor’s decision and performance. Chi-square test of independence and non-parametric correlation analysis was executed using Statistical Package for Social Sciences (SPSS).

Findings

The results of the study reveal that the investors transact at MSM at younger ages.  The investment experience and the age were highly dependent. Similarly the current occupation and the purpose of investment are highly dependent. This implies that investors were investing in capital growth and to meet emergency needs.

Research Implications

The respondents in the private sector were interested to invest more than employees of the public sector. This might be due to the employees in the private sector feel less secured than public sector employees.

Originality/Value

No study has been done to examine the investment decision-making traits of individuals in relates to Muscat Securities Market, Oman and it is a first-hand study of its kind and the results will be useful to the stakeholders.