ASSESSING THE INFLUENCE OF INVESTOR PSYCHOLOGY ON INVESTMENT INTENTIONS IN THE STOCK MARKET, ZAMBIA
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This study assessed the influence of investor psychology on investment intentions in Zambia’s stock market, where the behavioural drivers of participation had remained insufficiently understood. Guided by the Theory of Planned Behaviour and Self-Determination Theory, the study employed a positivist, quantitative correlational design using survey data collected from 310 investors across major urban centres. Correlation and hierarchical multiple regression analyses revealed that all four psychological factors (attitude toward behaviour, subjective norms, perceived behavioural control and past behavioural biases) were positively and significantly associated with investment intention. Attitude toward behaviour and subjective norms emerged as the strongest positive predictors, and the full model explained 88.3% of the variance in investment intention (R² = 0.883). Perceived behavioural control and past behavioural biases were positive and significant predictors when first entered, but their unique effects became negative once subjective norms and attitude were controlled, indicating that their positive influence was largely shared with social and attitudinal factors.
The findings highlighted the critical role of social influence, confidence and prior experience in shaping investment behaviour. The study therefore recommended that policymakers, capital market regulators, financial institutions and investor educators adopt behaviourally informed investor education and awareness programmes that leverage trusted social networks, build investors’ confidence and address behavioural biases, complemented by trust-enhancing market structures, in order to stimulate broader participation in Zambia’s capital market.
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