Factors Influencing Stock Market Participation Intentions among Millennials

Abstract

Stock market participation is an essential topic related to the level of financial literacy. This is because a high level of financial literacy is more likely to involve in stock market investment, which needs a good conceptual understanding of financial management, risk management, return of investment and money compounding. Millennials are the main workforce contributors to economic growth in Malaysia, while there is still low involvement in the stock market among them (stock market participation puzzle).  This study integrated behavioural factors in the Theory of Planned Behaviour (TPB) and financial literacy toward stock market participation intentions. Therefore, this study aims to understand the relationship of behavioural factors with the presence of financial literacy as adding factor. This study quantitatively analysed the conceptual framework using Statistical Package for Social Sciences (SPSS) Statistics 27, SPSS AMOS 24 and SPSS PROCESS 4.1 among 308 respondents from millennial naval officers of the Royal Malaysian Navy (RMN). The results show that attitudes, subjective norms, perceived behavioural control and financial literacy are significantly related to stock market participation intentions. This study will provide a more likely bridge the gap between the stock investors and non-investors regarding financial literacy level comparison and moderation effects of financial literacy in understanding stock market participation puzzle phenomenon.