The determinants of stock market participation: Evidence from individual investors in Zimbabwe.

Abstract

The participation of individual investors at the Zimbabwe Stock Exchange (ZSE) is very low. The reasons for the low participation rate are not well known. It is from this background that this study sought to understand the major drivers of individual participation at the stock market with a view to devise strategies that enforce an improved participation. Using data collected from stock broking managers, asset managers, fund/ investment managers, regulators, and investment/research analysts, the findings indicate that financial education, social interaction, awareness, transaction costs, access to internet, cognitive skills, perceptions, life satisfaction, liquidity constraints and age are significant predictors of stock market participation by individual investors. However, gender, trust and health status are insignificant predictors.