Chapter IV

CHAPTER IV
RESULTS AND DISCUSSION
This chapter presents the gathered data using the aforementioned methods, tools for
analysing the data gathered by the researchers and the interpretation of the data gathered
relative to the technique adopted on the previous research.
Profile of the Respondents
Table 1 shows the distribution of respondents according to gender. The results reveal
that most of the respondents are male with a frequency count of 51.9%. While female
respondents compromise a frequency of 48.1%. Based on the results, most of the respondents
are dominated by men. This shows that more men are investing in stocks than women.
Table 1: Gender
Gender Frequency Percent
Male 83 51.9
Female 77 48.1
Total 160 100.0
The results were supported by the study of Dwyer et al (2002) in which he discussed
that more men are investing due to the fact that women tend to be more risk-averse. Men are
likely to favour new and untested shares while women tend to invest on tried-and-trusted,
recognisable brands (HSBC Private Banking, 2018). In addition men display more confidence
about their investments whereas women tend to be more goal-directed and trade less (Jasen,
2015).
Table 2 shows the distribution of respondents according to age. The majority of the
respondents (60%) ranging from 18-30 years old, this was followed by (24%) ages 31-40.
Based on the results, there are more respondents whose age ranges from 18-30 years old. This
means that most of the respondents are young adults.
Table 2: Age
Age Frequency Percent
18-30 years old 96 60.0
31-40 years old 39 24.4
41-50 years old 19 11.9
51-60 years old 4 2.5
60 and above 2 1.3
Total 160 100.0
Results are further supported by an online article by Dalton (2018) in which he argued
that it would be much better if an individual invest at a young age because it would provide an
individual more benefits and more money in the future. In addition, Lodhi (2014) also stated
that as the age of the investors increases as well its experience on the stock market decreases
the investors’ preference on investments that are risky.
Table 3 shows the distribution of respondents according to marital status. This
indicates that majority of the respondents are single with a frequency point of 59.4% while
respondents who are already married has a frequency of 41%.
Table 3: Marital Status
Marital Status Frequency Percent

Single 95 59.4
Married 65 40.6
Total 160 100.0
Ton & Nguyen (2014) argued that investors that are single tend to take higher risk than
married investors.
Table 4 shows the distribution of respondents according to income. The majority of the
investors are earning P10,000- P30,00 with a frequency point of 63% . While the others were
earning less than Php 10,000 (19%) and Php 31,oo and above (18%).
Table 4: Income
Income Frequency Percent
Less than P 10,000 31 19.4
P 10,000 to P 30,000 101 63.1
Above P 30,000 28 17.5
Total 160 100.0
Jain & Mandot (2012) revealed that level of income of the investors has a positive
correlation on the investment decision.
Table 5 shows the distribution of respondents according to educational level. The
majority of the investors are bachelor degree holder (53%). This was followed by investors
who are in college/university with an average of 29%.

Table 5: Educational Level
Educational Level Frequency Percent
High School and

8 5.0
Lower
College/University 46 28.8
Bachelor 85 53.1
Masters/ PhD
18 11.3
Degree
Others 3 1.9
Total 160 100.0
Cited in the study of Al-Alawi (2017), Bhandari and Deaves (2006) found that
investors with a higher degree are confident than those in lower degree. It is also supported
that investors who are highly educated have effective and efficient risk preference.
Table 6 shows the distribution of respondents according to years of experience in the
market. The majority (56%) of the investors have less than 3 years of experience in the
market. This was followed by (28%) with 3 to 5 years of experience in the market. Mostly of
the respondents are in the age of 18-30 in which they just started investing. Furthermore,
Table 6: Years of Experience in the Market
Years of Experience
Frequency Percent
in the Market
Less than 3 90 56.3
3-5 years 44 27.5
6-10 years 14 8.8
More than 10 years 12 7.5

Total 160 100.0
Korniotis & Kumar (2011) stated that investors with a longer years of experience to
have a greater knowledge, hence, the investment skills weaken due to the adverse effect of
cognitive aging.
Table 7 shows the distribution of respondents according to occupational. This indicates
that majority of the investors are private organization employed with an average of 58%
followed by self-employed (18%).
Table 7: Occupation
Occupation Frequency Percent
Govt Employed 12 7.5
Private Employed 93 58.1
Self Employed 28 17.5
Unemployed 27 16.9
Total 160 100.0
Bhavani & Shetty (2017) indicated that age, gender, education as well as occupation
significantly influence the selection of investment avenues of investors.

Perception of the respondents on the Factors influencing Investment Decision
Table 8 presents the perception of the respondents on positive psychological capital
influencing their investment decision. Results revealed that item no. 7 and 14 gained the
highest mean score (4.23) for the Positive Psychological Factor followed by item no. 2, 3 and
9 with an overall mean score of 4.19, 4.18 and 4.18 respectively. Furthermore, the results also
showed that positive psychological factor has an overall mean score of 4.05 which is
equivalent to an overall verbal interpretation of “Agree”. This means that respondents have
high perception towards positive Psychological factor in terms of investment decision making.
Table 8: Positive Psychological Capital Factor
Positive Psychological Capital Factors: Mean Verbal

Interpretation
1. In uncertain times, I usually expect the best. 3.63 Agree
2. I always look on the bright side of things. 4.19 Agree
3. Overall, I expect more good things to happen to 4.18 Agree

me than bad.
4. I have confidence in my ability to solve my 4.06 Agree

investment problems in a creative way.
5. I am good at further developing the 3.92 Agree
ideas of others.
6. I have the ability to listen carefully to concerns 4.08 Agree
and solve problems creatively.
7. I have the ability to make a plan for my goals 4.23 Strongly Agree
for the next five years.
8. I feel confident analyzing a long-term 4.01 Agree
problem to find a solution.
9. I feel confident at helping to set targets/goals in 4.18 Agree
my area of work.
10. I can think of many ways to get out of any 4.05 Agree
problem.
11. I usually meet the goals that I set for myself. 3.92 Agree
12. My past experiences have prepared me well for 4.16 Agree
my future.
13. I usually manage difficulties one way or 4.03 Agree
another at work.
14. I am determined to overcome difficulties 4.23 Strongly Agree
that I encounter in my investment.
15. When I have a setback in my job search, 3.89 Agree
I usually do not have trouble recovering from
it.
Overall Mean 4.05 Agree
Al-Alawi & Salim (2017) signify that positive psychological factor has the smallest
influence among the internal factors, thus, it was found out that it has a positive significant on
the investment decision on both Kingdom of Saudi Arabia and the Sultanate of Oman.
Table 9 shows the perception of the respondents on religiosity factor influencing their
investment decisions. Results revealed that item no.17 obtained the highest mean score for
religiosity factor (3.89) followed by item no. 16 and 18 with an overall mean score of 3.86 and
3.05 respectively. The data also showed that the overall mean score for religiosity facor was
3.54 which is equivalent to a verbal interpretation of “Agree”. This implies that respondents
have high perception on their investment decision in terms of religion.
Table 9. Religiosity Factor
Religiosity Factor: Mean Verbal

Interpretation
16. My religion helps me to have a better life. 3.68 Agree
17. I believe that my God helps me to make a 3.89 Agree

decision.
18. I seek to make my investment decisions based 3.05 Neutral

on my religious belief.
This result is supported from the study of Al-Alawi (2017), discussing that investors
typically affected by their religion in which stock investors believes that their God helps them
to make decision and have a better life.
Table 10 presents the perception of the individual stock investors on investment
decision in terms of psychological factor. The results showed that item no. 20 had the highest
mean score (3.86) followed by item no.26 and 27 with a mean score of 3.78 and 3.73
respectively. Furthermore, results also revealed that psychological factor gained an overall
mean score of 3.55 which is equivalent to a verbal interpretation of “Agree”. This implies that
respondents have high perception on psychological factor when it comes to investment
decision making.
Table 10: Psychological (Cognitive and Emotions) Factor
Psychological (Cognitive and Emotions) Factor: Mean Verbal

Interpretation
19. I rely on my investment decision on the past 3.73 Agree

returns of the stock, as an indicator of future returns.
20. Good stocks are firms with past consistent 3.86 Agree
earnings growth.
21. I buys hot stocks and avoid stocks that perform 3.64 Agree
poorly.
22. I tend to invest in the stocks of companies that 3.60 Agree
have a local or regional business presence more than
those that do not.
23. I believe that I am less likely than many others to 3.54 Agree
suffer from bad events.
24. I use predictive skills to set my investment 3.68 Agree

decision-making.
25. I feel more confident in my own investment 3.68 Agree

opinions over the opinions of my colleagues or friends.
26. I believe that my skills and knowledge about stock 3.78 Agree
market can help me to outperform the market.
27. After a prior loss, I become more risk averse. 3.65 Agree
28. I prefers to invest in low risk/return stocks with a 3.44 Agree

steady performance.
29. I feel nervous when large paper losses (price 3.38 Neutral
drops) occur in my invested stocks.
30. I would increase the sum of my stock market 3.50 Agree

holdings if in the last month the aggregate trading
volume in the stock market was higher than usual.
31. Other investors' decisions of choosing stock types 3.34 Neutral

have an impact on my investment decisions.
32. I react quickly to the changes of other 3.07 Neutral

investors' decisions and follow their reactions to the
stock market.
33. I use the purchase price of stock as a reference 3.70 Agree

point in stock trading.
34. I am unlikely to buy a stock if it was more 3.19 Neutral

expensive than last year.
35. I am able to anticipate good or poor market 3.48 Agree

returns in stock markets.
36. I would expect the value of the index to decrease 3.49 Agree
in the next month if in each of the last six months the
price of the shares index value increased.
37. I tend to treat each element of my investment 3.68 Agree
portfolio separately.
38. I avoid selling shares that have decreased in 3.50 Agree

value and readily sell shares that have increased in
value.
This was further supported from the study of Barayandema & Ndizeye (2018), it is
stated that psychological factor was ranked second as one of the most influential factor with
an average mean of 3.96.
Table 11 represents the perception of individual stock investors towards on investment
decision in terms of political factor. The results revealed that item no. 39 gained the highest
mean (3.42) for the political factor followed by item no. 40 and 41 which gained a mean score
of 3.29 and 3.23 respectively. Furthermore, political factor also gained an overall mean score
of 3.31 which is equivalent to a verbal interpretation of “Agree”. This implies that individual
stock investors have high perception towards political factor in terms of investment decision
making.
Table 11: Political Factor
Political Factor: Mean Verbal

Interpretation
39. The internal political events affect my 3.42 Agree

investment decisions.
40. I play close attention to the political news. 3.29 Neutral
41. I play close attention to the government’s 3.23 Neutral

suggestions.

. It is stated in the article of Cruz (2016) that investment decision are influenced by
many factors and one of which is the political risk. It is affected by the actions of the
government by then interfere the transaction of a business. In the philippine government, it is
shown that formulating policies and implementing it maintains a positive feedback in the
business world.
Table 12 shows the perception of the individual stock investors in Batangas on their
investment decision in terms of economic factor. The results showed that item no. 52 gained
the highest mean score (4.01) for the economic factor followed by item no. 51 and 46 which
gained a mean score of 3.94 and 3.80 respectively. Results also revealed that economic factor
gained an overall mean score of 3.75 which is equivalent to a verbal interpretation of “Agree”.
This implied that the individual stock investors have high perception on economic factor when
it comes to investment decision making.
Table 12: Economic Factor
Economic Factors Mean Verbal

Interpretation
42. Interest rate influences my investment 3.71 Agree

decision in the stock market.
43. Inflation rate influences my investment 3.71 Agree

decision in the stock market.
44. My investment decisions in the stock market 3.49 Agree

are Influenced by the investment substitution.
45. The share price affordability by the firm 3.66 Agree

influences my investment decisions in the stock
market.
46. I consider the published corporate financial 3.80 Agree
statements in my investment decisions.
47. To set up my investment decision I use 3.71 Agree

financial models for investment.
48. I utilize technical analysis while making 3.70 Agree

investment Decision.
49. Increase/decrease in the company's profits 3.77 Agree

has affected my investment decisions.
50. The distribution of stock dividends 3.73 Agree

influences my investment decision.
51. The expectation of higher stock price 3.94 Agree

influences my Investment decisions.
52. The expected performance of the company 4.01 Agree

play an Important role in my investment decisions
This result was supported from the study of Khan et al (2015), stating that economic
factor was one of the factor that has a great influence on the investment decision making of
individual stock market investor
Table 13 represents the perception of the individual stock investors on their investment
decision in terms of corporate governance. Results revealed that item no. 60 obtained the
highest mean score (3.61) followed by item no. 59, 53 and 58 with a mean scores of 3.60, 3.56
and 3.56 respectively. Furthermore, results also showed that corporate governance factor
obtained an overall mean score of 3.40 which is equivalent to a verbal interpretation of
“Neutral”. The results implied that the individual stock investors have moderate perception on
corporate governance when it comes to investment decision making.

Table 13: Corporate Governance Factor
Corporate Governance and Social Factors: Mean Verbal
Interpretation
53. I consider the recommendations by a 3.56 Agree

reputable and trusted brokerage house in my
54. My investment decisions are affected by 3.13 Neutral

friends/co-workers’ recommendations..
55. My investment decisions are affected by 3.23 Neutral

individual stock brokers’ advice.
56. Rumours from the market affected my 3.03 Neutral

57. I consider the company's shareholders profile 3.42 Agree

for investment.
58. I take the governance strengths of companies 3.56 Agree

into account when making investment decisions.
59. The firm's affiliation with a business group 3.60 Agree

affects my investment decisions.
60. The size of firm's shareholder ownership 3.61 Agree

influences my investment decisions.
61. I expect a firm that pays a dividend to be 3.48 Agree

better governed than one that is non-dividend
paying, thus such indicators of dividend-paying
firms influence my investment decisions.
Overall Mean 3.40 Neutral
. This result was supported by the study of Al-Ajmi (2009) in which corporate
financial statement has a big role in the investment decision because it provide information for
their decision making. Furthermore, in the study of Jagongo & Mutswenje (2014) stated that
advocate recommendation has a moderately effect in the investment decision of the investors
in the NSE.
Table 14 indicates the level of perception of individual stock investors on investment
decision making in terms of cultural factor. Results revealed that item no. 64 obtained the
highest mean score for the cultural factor (4.05) followed by item no. 63 and 62 which
obtained a mean scores of 3.68 and 3.58 respectively. Results also showed that cultural factor
obtained an overall mean score of 3.59 which is equivalent to a verbal interpretation of
“Agree”. This implies that respondents have high perception on cultural factor when it comes
to investment decision making.
Table 14: Cultural Factor
Cultural Factors: Mean Verbal

Interpretation
62. I respect the culture values in share 3.58 Agree

investment.
63. I tend to perceive industrial and technological 3.68 Agree

risks as opportunities rather than threats to those
companies I invest in.
64. I prefer to invest in companies that have a 4.05 Agree

high degree of integrity.
65. I prefer to invest in companies whose CEO is 3.40 Neutral

of a similar cultural origin.
66. I have limited market knowledge about the 3.24 Neutral

product/service I buy/sell from those companies I
invest-in.

This result was in contrast by the study of Aregbeyen & Mbadiugha (2012), it appears
on their study that cultural factor seemed to have a least influence on the investment decision
on the Nigerian investors due to cultural differences.
Table 15 represents the perception of the individual stock investors on investment
decision in terms of ethical and environment factor. The results revealed that item no.69
obtained the highest mean score (3.94) for ethical and environmental factor followed by item
nos. 71 and 72 which obtained a mean scores of 3.83 and 3.81 respectively. Moreover, the
results also showed that ethical and environmental factor gained an overall mean score of 3.77
which is equivalent to a verbal interpretation of “Agree”. This further implied that respondents
have high perception on ethical and environmental factor in terms of investment decision
making.
Table 15: Ethical and Environmental Factor
Ethical and Environmental Factors: Mean Verbal

Interpretation
67. I consider corporate social investment while 3.63 Agree

making investment decisions.
68. I prefer to invest in those companies that 3.68 Agree

engage in corporate social investments.

comply with state law and professional codes.

comply with internal rules and procedures.

comply with individual principles and beliefs.
72. I consider the company's environmental 3.81 Agree
impact of product and services in my investment
decision.
73. The environmental record (awards/penalties) 3.76 Agree

of the company affects my investment decision.
74. Environmental reporting influences my 3.66 Agree

investment decision.
Lincoln and Holmes (2011) supported the result by which investors consider ethics
from the company that they chose to invest in and distinguishing companies which provides
non harmful products to lessen the risk.
Table 16 shows the level of investor decision as to the following internal and external
factors. Results revealed that item no. 78 obtained the highest mean score (3.79) followed by
item nos. 79 and 76 which obtained mean scores of 3.76 and 3.75 respectively. Results also
revealed that the investor decision making obtained an overall mean of 3.66 which is
equivalent to a verbal interpretation of “Agree”. This further implied that respondents have
high level of investor decision as to the following internal and external factors.
Table 16: Level of investor decision as to the following internal and external factors
Investor Decision Making Mean Verbal

Interpretation
75. My investment in stocks has a high degree of 3.59 Agree
safety.
76. My investment has the ability to meet interest 3.75 Agree

payments.
77. My investment has a lower risk compared to 3.42 Agree
the market generally.
78. My investment in stocks has demonstrated 3.79 Agree

increased revenue growth in the few past years.
79. My investment in stocks has demonstrated 3.76 Agree

increased cash flow growth in the past few years.
The results implied the individual stock investors in Batangas have high level of
investor decision as to the internal and external factors. Kadariya (2012) cited that factors such
as capital structure, average pricing method, belief on luck and political factor were found to
have an influence on the investor’s decision making.
Influence of the factors on Investment Decision Making
Table 17 represents the multiple regression analysis indicating the influence of the
factors on investment decision making. The results implied that all factors are deemed to have
a positive influence on investment decision making. However, psychological factor was the
only factor deemed to have a positive significant influence on investment decision making
(Beta =.472, p-value>0.05). In addition, the results also implied that among all the factors,
psychological factor had the greatest contribution on investment decision.
Table 17: Influence of the Factors on Investment Decision
Unstandardized Standardized
Coefficients Coefficients
Model t Sig. Verbal Interpretation
Std.
B Beta
Error
(Constant) .678 .317 2.139 .034 Significant
Positive Psychological
Capital
.064 .089 .055 .717 .474 Not Significant
Religious .007 .043 .011 .171 .865 Not Significant
Psychological .472 .103 .403 4.562 .000 Significant

Not Significant
Political .019 .050 .031 .377 .707
Not Significant
Economic .125 .082 .137 1.513 .132
Not Significant
Corporate Governance .024 .074 .033 .330 .742
Not Significant
Cultural .052 .083 .060 .628 .531
Ethics and
Environment
.061 .077 .076 .789 .431 Not Significant
The result was consistent with the findings of Talha (2016) and Gigerenzer &
Gaissmaier (2011) which they have argued that investors are rational and they depend on
psychological (emotional & cognitive) when it comes to investment decision making and they
also believed that judgements based on emotional and cognitive instincts will more precise by
ignoring a part of the information which they deemed not substantial or not useful for their
Difference of the internal and external factors when grouped according Profile
Table 18 shows that the investment decision of the respondents vary according to
religious, positive psychological capital, and corporate governance when grouped according to
gender. The data shows that male respondents have higher positive psychological factor than
female respondents. This means that male individual stock investors are given superior self-
efficacy, coping skills, and ability to secure social support than female individual stock
investors.
Table 18: Difference on each of the eight factors when grouped according to gender
Verbal
Mean F- value p-value
Interpretation
Positive Psychological Male 4.1523 5.033 .026 Significant
Capital Female 3.9409
Male 3.3695 4.623 .033 Significant
Religiosity Female 3.7274
Male 3.4717 2.715 .101 Not significant
Psychological Female 3.6247
Male 3.2372 .764 .383 Not Significant
Political Female 3.3936
Economic Female 3.6860
Male 3.2477 4.788 .030 Significant
Corporate Governance Female 3.5642
Male 3.5060 1.921 .168 Not Significant
Cultural Female 3.6805
Ethical and Environment Female 3.7760
The findings were congruent to the Bernstein and Volpe’s (2016) study wherein
positive masculinity was deemed to have the highest level of positive psychological capital
whereas positive femininity was found to have lower levels.
However, the data also implied that female respondents are deemed to have higher
religiosity than male respondents. This indicates that female investors are more religious
affiliated when making investment decisions than male investors. This is further supported by
the Pew Research Center (2016) wherein they argued that women are more likely to say that
religion is very important in their lives rather than men which further indicates that women
takes more consideration on religion when making various decisions than men.
Results also indicated that female respondents have higher corporate governance rather
than men. This result was supported by the study of Rosenblum and Roithmayr (2015) which
indicated that women have more varying approaches when it comes to decision making than
of men and that women are more likely to sort out social responsibility issues.
Table 19 indicates that there is significant difference on religiosity factor when
grouped according to age. The data shows that individual stock investors in Batangas who are
aged 60 and above have significant higher religiosity factor. This further indicate that
investors aged 60 and above are more religious affiliated in terms of investment decision
making.
Table 19: Difference on each of the eight factors when grouped according to Age
Verbal
Mean F-Value p-value
Interpretation
18-30 years old 4.0009 1.010 .404 Not Significant
31-40 years old 4.1895
Positive Psychological 41-50 years old 3.9726
Capital 51-60 years old 4.3325
60 and above 3.9000
18-30 years old 3.6355 2.723 .032 Significant

31-40 years old 3.1367
Religiosity 41-50 years old 3.7895
51-60 years old 3.4175
60 and above 4.8350
18-30 years old 3.5396 .644 .632 Not significant

31-40 years old 3.4821
Psychological 41-50 years old 3.7316
51-60 years old 3.4000
60 and above 3.5750
18-30 years old 3.3957 .581 .677 Not Significant

31-40 years old 3.1113
Political 41-50 years old 3.3684
51-60 years old 2.9175
60 and above 3.5000
31-40 years old 3.5603
Economic 41-50 years old 3.8853
51-60 years old 3.8850
60 and above 3.4100
31-40 years old 3.2628
Corporate Governance 41-50 years old 3.4142
51-60 years old 3.1400
60 and above 3.0000
18-30 years old 3.7104 2.242 .067 Not Significant
31-40 years old 3.4513
Cultural 41-50 years old 3.4947
51-60 years old 2.9500
60 and above 2.7000
18-30 years old 3.8649 1.759 .140 Not significant
31-40 years old 3.6082
Ethical and Environment 41-50 years old 3.8305
51-60 years old 3.6275
60 and above 2.5000
This finding is further supported by Pew Research Center (2018) which indicated that
older adults tend to be more religious than young adults. The findings also argued that people
will find religion very important in their lives, especially when making decisions, as they age.
Table 20 indicates that there is no significant difference between the eight factors
when grouped according to marital status. This means that regardless of marital status, the
respondents share the same perception in terms of the internal and external factors.
Table 20: Difference on each of the eight factors when grouped according to marital status
Verbal
Mean F-value p-value
Interpretation
Positive Psychological Single 4.0142 .849 .358 Not Significant
Capital Married 4.1037
Single 3.6104 .974 .325 Not Significant
Religiosity 3.4414
Married
Single 3.4863 2.358 .127 Not Significant
Psychological 3.6315
Married
Political 3.3642
Married
Economic 3.6925
Married
Corporate Governance 3.4446
Married
Cultural 3.6338
Married
Ethical and Environmental 3.7406
Married
This result is supported by the study of Ali & Javed (2013) in which marital status has
no significant in the investors financial decision making.
Table 21 indicates that there is a significant difference between psychological,
political, corporate governance and cultural factor when grouped according to income. The
data shows that respondents who are earning a salary of Php 30,000 and above have higher
psychological.
Table 21: Difference on each of the eight factors when grouped according to income
Verbal
Interpretation
Less than P 10,000 4.0471 .509 Not Significant
Positive Psychological 4.0188 .677
P 10,000 to P 30,000
Capital 4.1689
Above P 30,000
Less than P 10,000 3.8929
3.4785 2.220 .112 Not Significant
Religiosity P 10,000 to P 30,000
Above P 30,000 3.3811
Less than P 10,000 3.5194
3.4644 5.402 .005 Significant
Psychological P 10,000 to P 30,000
Above P 30,000 3.8661
Less than P 10,000 2.9142 .001 Significant
3.2608 6.812
Political P 10,000 to P 30,000
Above P 30,000 3.9400
Less than P 10,000 3.6771 .237 Not Significant
3.7086 1.451
Economic P 10,000 to P 30,000
Above P 30,000 3.9675
3.3279 3.484
Corporate Governance P 10,000 to P 30,000
Above P 30,000 3.8093
3.4911 3.629
Cultural P 10,000 to P 30,000
Above P 30,000 3.9429
Less than P 10,000 3.8926
Ethical and 3.6552 2.996 .053 Not Significant
P 10,000 to P 30,000
Environmental 4.0782
Above P 30,000
This means that investors who are earning more tend to take more risk when it comes
to investing. Investors who are earning more income tend to invest in more volatile portfolios
consisting of more volatile stocks than those who are earning less. These findings were
congruent with the findings of Lutfi (2010) and Sadiq & Ishaq (2014).
The results also shows that respondents who are earning a salary of Php 30,000 and
below have lower consider political factor when making investment decision. Investors who
are earning lesser income are more risk averse than those who earn more (Lutfi, 2010). They
are likely to avoid investing in countries that are perceived to have political charges or high
political risk (Ozorio et. al, 2013).

Corporate governance was also deemed to have a significant relationship when
grouped according to income. The results revealed that respondents who are earning Php
30,000 and above have higher perception on corporate governance. Supported by an online
article by Aguilar (2014), she further explained that investors who are well-paid in their jobs
deemed corporate governance as an essential part of their decision making. Investors believe
that good corporate governance would help create stability for capital markets in the economy
as well as protection for the investors.
Results also revealed that respondents who are earning Php 30,000 and above have
higher perception on culture in terms of investment decision making. This means that
investors who are earning more tend to invest on companies that have high consideration in
culture. Supported by an online article by Investment Master Class (2017), investors are
highly attracted to businesses/companies that are perceived to have healthy cultures because
these businesses are assumed to perform better. The better the performance of a certain
company the more that an investment will succeed.
Table 22 indicates that there is significant difference between psychological,
economic, political, corporate governance and cultural factors when grouped according to
educational level. The results indicated that respondents who earned a bachelor degree have
higher perception on psychological factor. This implies that investors with higher level of
education such as those with bachelor degree are more rational when it comes to investment
decision making because they have attained greater knowledge than those with lower level of
education.
Table 22: Difference on each of the eight factors when grouped according to educational level
Verbal
Interpretation
High School and Lower 3.7163 2.408 .052 Not Significant
College/University 3.9524
Positive Psychological Bachelor 4.1758
Capital Masters/ PhD Degree 3.8522
Others 4.0900
Religiosity Bachelor 3.5336
Masters/ PhD Degree 3.2956
Others 4.1100
High School and Lower 3.5625 3.225 .014 Significant
Psychological Bachelor 3.6876
Others 3.6167
Political Bachelor 3.5926
Others 4.1100
Economic Bachelor 3.9221
Others 3.9100
Corporate Governance Bachelor 3.6301
Others 3.6300
Cultural Bachelor 3.8424
Others 3.4000
Ethical and Bachelor 3.9448
Environmental Masters/ PhD Degree 3.5644
Others 3.5433
This is in line with the study of Lutfi (2010) and Obamuyi (2013) wherein they
explained that it is understood that individual investors have different educational attainment
which will result to diversified investment decisions. The higher the education the more an
investor understands the concept of investing and the higher the tolerance for risk in
investment decision.
Respondents who earned a higher level of education consider economic factor in
investment decision. The result was supported by the study of Fachrudin (2016), economic
events influence financial decision of the investors of the UAE who have a higher degree.
Cultural factor has an influence on those respondents who earned bachelor degree.
According to Mujahid et.al. (2014), investors who are highly educated can decided and
calculate way better in their investment when in highly risky. Supported by the study of
Weber (2013), investors cultural background influences risk taking individual investor.
Results also showed that respondents who did not earned any of the given educational
attainment are deemed to have a higher perception towards political factor in terms of
investment decision making. Under the educational level others which it includes vocational
course and certification such as TESDA a government agency in charge of managing and
supervising technical education and skills development. According to Rodriguez (2014), they
are mostly influenced by the political events happening in the Philippines such as the
implementation of reforms and new constructed policies.
Table 23 shows that there is no significant difference between the eight factors when
grouped according to years of experience in the market. This results implied that regardless of
years of experience in the market, the respondents share the same perception on the following
internal and external factors.
Table 23: Difference on each of the eight factors when grouped according to years of experience in the
market
Mean F-value p-value Verbal Interpretation
Less than 3 3.9932 1.161 .327 Not Significant
Positive Psychological 3-5 years 4.1682
Capital 6-10 years 4.1586
More than 10 years 3.9233
Less than 3 3.6449 .816 .487 Not Significant
3-5 years 3.3707
Religiosity 6-10 years 3.3571
3-5 years 3.5636
Psychological 6-10 years 3.6464
3-5 years 3.4168
Political 6-10 years 3.2379
3-5 years 3.7727
Economic 6-10 years 3.8164
3-5 years 3.3711
Corporate Governance 6-10 years 3.6914
3-5 years 3.5773
Cultural 6-10 years 3.8857
Ethical and 3-5 years 3.7834
Environmental 6-10 years 4.0214
Table 24 indicates that there is no significant difference between the eight factors
when grouped according to occupation. The results implied that the respondents share the
same perception on the following internal and external factors regardless of occupational type.
Table 24: Difference on each of the eight factors when grouped according to occupation
Verbal
Interpretation
Govt Employed 3.9167 .271 .846 Not Significant
Positive Psychological Private Employed 4.0699
Capital Self Employed 4.0764
Unemployed 4.0167
Private Employed 3.4444
Religiosity
Self Employed 3.6904
Unemployed 3.7415
Govt Employed 3.2583 1.432 .236 Not Significant
Psychological
Unemployed 3.6315
Political
Unemployed 3.1856
Economic
Unemployed 3.6500
Corporate Governance Self Employed 3.4493
Unemployed 3.2093
Cultural Self Employed 3.6000
Unemployed 3.4889
Ethical and Private Employed 3.8610
Environmental Self Employed 3.6125
Unemployed 3.7515

Chapter IV

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Chapter IV

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CHAPTER IV

RESULTS AND DISCUSSION

relative to the technique adopted on the previous research.

Profile of the Respondents

Gender Frequency Percent

Total 160 100.0

means that most of the respondents are young adults.

Age Frequency Percent

18-30 years old 96 60.0

31-40 years old 39 24.4

41-50 years old 19 11.9

51-60 years old 4 2.5

60 and above 2 1.3

Total 160 100.0

the investors’ preference on investments that are risky.

Table 3 shows the distribution of respondents according to marital status. This

respondents who are already married has a frequency of 41%.

Table 3: Marital Status

Marital Status Frequency Percent

Total 160 100.0

Income Frequency Percent

Less than P 10,000 31 19.4

P 10,000 to P 30,000 101 63.1

Above P 30,000 28 17.5

Total 160 100.0

correlation on the investment decision.

Table 5 shows the distribution of respondents according to educational level. The

who are in college/university with an average of 29%.

Educational Level Frequency Percent

High School and

Total 160 100.0

Table 6 shows the distribution of respondents according to years of experience in the

Table 6: Years of Experience in the Market

Less than 3 90 56.3

3-5 years 44 27.5

6-10 years 14 8.8

More than 10 years 12 7.5

Table 7 shows the distribution of respondents according to occupational. This indicates

followed by self-employed (18%).

Occupation Frequency Percent

Govt Employed 12 7.5

Private Employed 93 58.1

Self Employed 28 17.5

Total 160 100.0

significantly influence the selection of investment avenues of investors.

Table 8 presents the perception of the respondents on positive psychological capital

Table 8: Positive Psychological Capital Factor

Positive Psychological Capital Factors: Mean Verbal

2. I always look on the bright side of things. 4.19 Agree

3. Overall, I expect more good things to happen to 4.18 Agree

4. I have confidence in my ability to solve my 4.06 Agree

Overall Mean 4.05 Agree

have high perception on their investment decision in terms of religion.

Table 9. Religiosity Factor

Religiosity Factor: Mean Verbal

17. I believe that my God helps me to make a 3.89 Agree

18. I seek to make my investment decisions based 3.05 Neutral

Overall Mean 3.54 Agree

to make decision and have a better life.

Table 10 presents the perception of the individual stock investors on investment

respondents have high perception on psychological factor when it comes to investment

Table 10: Psychological (Cognitive and Emotions) Factor

Psychological (Cognitive and Emotions) Factor: Mean Verbal