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Entrepreneur’s Awareness and Risk Perception to Equity Market on Stock Investing

Received: 14 February 2020     Accepted: 13 April 2020     Published: 29 April 2020
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Abstract

This study determined the awareness and risk perception of entrepreneurs to equity market with their motivation to engage in stock investing. Specifically it aimed to accomplish the following: (1) Determine background characteristics of the selected entrepreneurs and their business (2) Determine the awareness to equity market as to investing through Stock Exchange Market and investing through Over-the-Counter Market, (3) Determine the risk perception to equity market as to Aggressive Risk Tolerance, Moderate Risk Tolerance and Conservative Risk Tolerance, (4) Determine the motivation to engage in stock investing in terms of Conservative Investing and Aggressive Investment Strategy, (5) Determine the relationship of the entrepreneurs’ profile with their motivation to invest in equity market, and (6) Determine the relationship of awareness and risk perception to equity market with the entrepreneurs’ motivation to engage in stock investing. The researchers used descriptive-correlational design with 360 respondents who were selected among the sole-proprietor entrepreneurs of Lucena City. A self-constructed questionnaire was utilized having a 4-point scale with ordinal codes. Part one is the background characteristics, second part is the awareness to equity market, third part is the risk perception to equity market, and the last part is the motivation to engage in stock investing. Frequency, weighted mean, and chi-square were used for the interpretation of data. Based on the results, there is evidence that the awareness and risk perception of the respondents in all industries has no relationship with their motivation to engage in stock investing.

Published in International Journal of Finance and Banking Research (Volume 6, Issue 2)
DOI 10.11648/j.ijfbr.20200602.11
Page(s) 17-27
Creative Commons

This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.

Copyright

Copyright © The Author(s), 2020. Published by Science Publishing Group

Keywords

Awareness, Risk Perception, Equity Market, Motivation to Invest

References
[1] Rappler Report (2016). Foreign direct investments in PH up 94.9% in H1 2016. Retrieved from https://www.rappler.com/business/economy-watch/146084-ph-fdi-june-2016.
[2] Quek, C. (2016, March 7). Philippines through the eyes of local startups. Retrieved October 8, 2016, from https://www.techinasia.com/talk/philippines-eyes-local-startups.
[3] Rivera (2015). Stock, Preferred Stock, Stock Market, Common Stock, Conservative Investing, Conservative Growth. Retrieved September 28, 2016. /www.investopedia.com.
[4] Stock Investment Strategy | Low | Moderate | Aggressive (2015). Retrieved from http://www.pfhub.com/choosing-your-investment-strategy/.
[5] Philippine Stock Exchange.(n.d.) from https://en.wikipedia.org/wiki/Philippine_Stock_Exchange.
[6] Stock exchange (n.d.). Retrieved https://en.wikipedia.org/wiki/Stock_exchange.
[7] Finance & Development (n.d.). Retrieved from http://www.imf.org/external/pubs/ft/fandd/basics/markets.html.
[8] Ultimate Guide on How to Invest Stocks in the Philippines (2016). Retrieved from http://philpad.com/ultimate-guide-on-how-to-invest-in-stocks-in-the-philippines/.
[9] How many Filipinos invest in the stock market? (n.d.) Retrieved from http://www.pinoymoneytalk.com/2015-philippines-number-stock-market-investors.
[10] Risk Tolerance. Retrieved from http://www.moneycontrol.com/news-topic/risk-tolerance/
[11] The Five Most Commonly-used Risk Tolerance Categories. (n.d.). Retrieved from http://www.toolsformoney.com/investment_risk_tolerance.html.
[12] Stock Investing. Retrieved from http://www.forbes.com/sites/duncanrolph/2013/10/30/5-rules-of-the-road-how-to-invest-a-conservative-portfolio-in-the-current-environment/#22cef87b2359.
Cite This Article
  • APA Style

    Leomar Miano. (2020). Entrepreneur’s Awareness and Risk Perception to Equity Market on Stock Investing. International Journal of Finance and Banking Research, 6(2), 17-27. https://doi.org/10.11648/j.ijfbr.20200602.11

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    ACS Style

    Leomar Miano. Entrepreneur’s Awareness and Risk Perception to Equity Market on Stock Investing. Int. J. Finance Bank. Res. 2020, 6(2), 17-27. doi: 10.11648/j.ijfbr.20200602.11

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    AMA Style

    Leomar Miano. Entrepreneur’s Awareness and Risk Perception to Equity Market on Stock Investing. Int J Finance Bank Res. 2020;6(2):17-27. doi: 10.11648/j.ijfbr.20200602.11

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  • @article{10.11648/j.ijfbr.20200602.11,
      author = {Leomar Miano},
      title = {Entrepreneur’s Awareness and Risk Perception to Equity Market on Stock Investing},
      journal = {International Journal of Finance and Banking Research},
      volume = {6},
      number = {2},
      pages = {17-27},
      doi = {10.11648/j.ijfbr.20200602.11},
      url = {https://doi.org/10.11648/j.ijfbr.20200602.11},
      eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijfbr.20200602.11},
      abstract = {This study determined the awareness and risk perception of entrepreneurs to equity market with their motivation to engage in stock investing. Specifically it aimed to accomplish the following: (1) Determine background characteristics of the selected entrepreneurs and their business (2) Determine the awareness to equity market as to investing through Stock Exchange Market and investing through Over-the-Counter Market, (3) Determine the risk perception to equity market as to Aggressive Risk Tolerance, Moderate Risk Tolerance and Conservative Risk Tolerance, (4) Determine the motivation to engage in stock investing in terms of Conservative Investing and Aggressive Investment Strategy, (5) Determine the relationship of the entrepreneurs’ profile with their motivation to invest in equity market, and (6) Determine the relationship of awareness and risk perception to equity market with the entrepreneurs’ motivation to engage in stock investing. The researchers used descriptive-correlational design with 360 respondents who were selected among the sole-proprietor entrepreneurs of Lucena City. A self-constructed questionnaire was utilized having a 4-point scale with ordinal codes. Part one is the background characteristics, second part is the awareness to equity market, third part is the risk perception to equity market, and the last part is the motivation to engage in stock investing. Frequency, weighted mean, and chi-square were used for the interpretation of data. Based on the results, there is evidence that the awareness and risk perception of the respondents in all industries has no relationship with their motivation to engage in stock investing.},
     year = {2020}
    }
    

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    T1  - Entrepreneur’s Awareness and Risk Perception to Equity Market on Stock Investing
    AU  - Leomar Miano
    Y1  - 2020/04/29
    PY  - 2020
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    T2  - International Journal of Finance and Banking Research
    JF  - International Journal of Finance and Banking Research
    JO  - International Journal of Finance and Banking Research
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    AB  - This study determined the awareness and risk perception of entrepreneurs to equity market with their motivation to engage in stock investing. Specifically it aimed to accomplish the following: (1) Determine background characteristics of the selected entrepreneurs and their business (2) Determine the awareness to equity market as to investing through Stock Exchange Market and investing through Over-the-Counter Market, (3) Determine the risk perception to equity market as to Aggressive Risk Tolerance, Moderate Risk Tolerance and Conservative Risk Tolerance, (4) Determine the motivation to engage in stock investing in terms of Conservative Investing and Aggressive Investment Strategy, (5) Determine the relationship of the entrepreneurs’ profile with their motivation to invest in equity market, and (6) Determine the relationship of awareness and risk perception to equity market with the entrepreneurs’ motivation to engage in stock investing. The researchers used descriptive-correlational design with 360 respondents who were selected among the sole-proprietor entrepreneurs of Lucena City. A self-constructed questionnaire was utilized having a 4-point scale with ordinal codes. Part one is the background characteristics, second part is the awareness to equity market, third part is the risk perception to equity market, and the last part is the motivation to engage in stock investing. Frequency, weighted mean, and chi-square were used for the interpretation of data. Based on the results, there is evidence that the awareness and risk perception of the respondents in all industries has no relationship with their motivation to engage in stock investing.
    VL  - 6
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Author Information
  • College of Administration, Business, Hospitality, and Accountancy (CABHA), Southern Luzon State University, Lucban, Quezon, Philippines

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