World Summit on Management Sciences
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Accepted Abstracts

The Determinants of Capital Market Participation

Mohamad Fazli Sabri*
Universiti Putra Malaysia, Malaysia

Citation: Sabri MF (2020) The Determinants of Capital Market Participation. SciTech Management Sciences 2020. Thailand 

Received: February 24, 2020         Accepted: February 27, 2020         Published: February 27, 2020

Abstract

In this dynamic world, investment has become an important tool to secure their financial security. There are several reasons or advantages of investment such as financial security, prepare for emergency cases, fulfilling financial goals, wealth creation and fighting inflation. From economic scene, investment is a significant tool to make the sufficient cash flows between the deficit spending unit and surplus spending unit. On the other words, investment will helps boosting up the economic growth and maintain the financial stability in the country. However, there awareness of investment among Malaysian is maintaining low due to several reasons. Most Malaysians will struggle to cope with individual financial problem, while personal will face difficulties on own financial goals and huge expenses on daily basis because they have no enough income to cover all these costs. The capital market provides a broad range of investment opportunities that can match various investment and risk appetites. There are different stock counters and products offering different rates of possible risks and returns, which can translate into good value growth. According to Bursa Malaysia (2018) the participation of retail investors or individual investors in the Malaysian capital market is currently at 22%. The objective of this study is to determine the Malaysians’ capital literacy and factors affecting their participation in the capital market. A self-administered questionnaire was distributed to a sample of 1,500 respondents across the nation. The results reveal that the demographic characteristics, financial status, capital literacy, financial capability were significant factors determining the participations of Malaysians’ in the capital market. The study adds to the literature of capital market participation and it provides useful insights to capital market practitioners to devise strategies that enforce an improved participation
 
Keywords: Capital market, Participation, Capital literacy, Financial capability