Acceso usuarios
Navajit Borah
, Yarso Awungshi
Purpose: The focus of this study is to measure the relative worth of antecedents of perceived risk in equity market and contrast the same across socio economic characteristics.
Theoretical framework: Risk perception is crucial for equity investors as it influences their investment decisions. In this study the risk perception of the retail investors about the antecedents of risk, relative worth wise, was tried to be tested through13 antecedents grouped under two dimensions i.e., Company and Market- Regulatory Linked Information based on age and income groups.
Design/methodology/approach: The study used descriptive design. 204 retail investors were surveyed from Jorhat, India. The Relative Importance Index (RII) and Kruskal- Wallis test were used to measure and compare the antecedents.
Findings: The study found that under Company-Linked Information, "Market share" and "Composition and fame etc., of Board of Directors of the companies" were the most and least influential antecedents. Secondly, "Further Public Offer" and "Trends in the Fluctuations in the price of Gold" were the most and least influential antecedents under Market-Regulatory Linked Information. Moreover, retail investors' risk perception significantly differed across three income groups under the Company -linked information.
Research, practical and social implications: The equity market investors, data analyst and academicians may be benefited by depending on more objectively carved out relative importance of the antecedents based on the findings of this study.
Originality/value: The value of the research lies in its endeavor to prioritize the antecedents that potentially impact the risk behaviour of investors, thereby facilitating informed decision-making.
