Sociological and Cultural Influence on Choice of Capital in Emerging Markets

International Journal of Economics and Management Studies

© 2019 by SSRG - IJEMS Journal

Volume 6 Issue 9

Year of Publication : 2019

Authors : George Obeng

10.14445/23939125/IJEMS-V6I9P105

How to Cite?

George Obeng, "Sociological and Cultural Influence on Choice of Capital in Emerging Markets," SSRG International Journal of Economics and Management Studies, vol. 6,  no. 9, pp. 56-65, 2019. Crossref, https://doi.org/10.14445/23939125/IJEMS-V6I9P105

Abstract:

A world of scarce resources oriented the theory of choice embedded in the process of investment decision.Risking the scarce resources to take up investment opportunities requires choices, a decision making process explained severally by classical theories.These theories emphasize a syndrome of rationality of investment decision by rational investors with their behavioural antecedents and socio-cultural aptitude missing out.The study investigates how societaland sociological settings in any given culture can influence investment decisions to make funds available for entrepreneurship development.Randomly 250 potential investors weretargeted in a surveyusing questionnaireto find out how socio-cultural dispositionsimpinge and influence investment decision and choice. The study reveals that there is strong significance of gender; age and education influencing investment decision making.It encourages the development of the bond market for entrepreneurial development particularly empowering women in emerging economies. Capital structure is not as determined by management but optional response of investors to management behaviour.

Keywords:

Behavioural Finance, Capital Structure, Culture, Entrepreneurship, Sociology

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