Gender Differences and Factors that Affect Stock Investment Decision of Western Canadian Investors

This study examines the effects of: 1) investment expertise, 2) familiarity with accounting information, 3) knowledge of 'neutral information', 4) consultation with investment advisors on investors' decisions to invest in stocks. Investors from Western Canada were surveyed in order to gather information and estimate these factors and their relationship with their investment decisions. Subjects were asked about their beliefs and feelings regarding their decision to invest in the stock market. We found that their degree of stock investment decision is related to the degree of their own perceptions about their: 1) investment expertise, 2) general knowledge of neutral information, 3) consultation with investment advisors. We also found that the effects of these factors differ with investors' familiarity with accounting information. Gender plays an important role and the nature of the relationship between these factors and the propensity and intensity of investment in stocks differs between male and female individuals. The findings may be useful for investment managers.