Correlating disposable incomes and investing in equities in the Nigerian capital market

Abstract

Capital markets in all economies globally, signify the economic performance and level of growth and development of the country. A vibrant market indicates positive performance and a non-vibrant market reflects economic downturn. For investors to engage in capital market activity, there must be interest and appropriate incomes that are disposable. The level of poverty plays a great role in allowing the investor to have incomes that will allow such investment activity. This study intends to update literature by using a behavioural approach to look at investment in equities in the Nigerian capital market. Specifically, the level of disposable incomes towards investing in equities. The objective of the study is to investigate the behaviour of investors on disposable incomes and investing in equities in the Nigerian capital market. The research question formulated to guide the study was to what extent are additional income of investors having an effect on investing in equities in the Nigerian capital market? The research is a qualitative study. Primary data was used to conduct the research through questionnaires. The dependent variable was capital market proxy by awareness on equities in the Nigerian capital market, and the independent variable was disposable income proxy by additional income of investors, savings of investors, and investors interest. SPSS was used to analyse the data, and the results revealed that additional income of investors had no effect on investing in equities in the Nigerian capital market.