Active trading and retail investors in Malaysia


Khan, Mohammad Tariqul Islam and Tan, Siow Hooi and Chong, Lee Lee (2017) Active trading and retail investors in Malaysia. International Journal of Emerging Markets, 12 (4). pp. 708-726. ISSN 1746-8809

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The purpose of this paper is to investigate who trade actively in the Malaysian stock market and what determines investors’ active trading decisions. Using a cross-sectional survey on individual investors, the study identifies active and inactive investors and then, investigates active trading by estimating binary logistic regression. Active investors in Malaysia are more likely to be male, working in non-finance-related sectors and are more experienced. The likelihood of active trading increases with the number of hours spent on researching investment, very short-term favorable unemployment and economic growth expectations (three-month) and past investment outcomes, whereas this probability decreases with higher cognitive ability and short-term unemployment expectations.

Item Type: Article
Uncontrolled Keywords: Retail trade, Malaysia, Active trading, Investment characteristics, Macroeconomic expectations, Past investment outcome
Subjects: H Social Sciences > HF Commerce > HF5001-6182 Business > HF5428-5429.6 Retail trade
Divisions: Faculty of Management (FOM)
Depositing User: Ms Rosnani Abd Wahab
Date Deposited: 22 Oct 2020 16:30
Last Modified: 22 Oct 2020 16:30


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