Determinants of Investment Participation: A Gender-Based Analysis of Behavioral and Structural Factors

Abstract

This study examines the determinants of investment participation with a focus on gender-based differences using primary survey data from 71 respondents in the United States. A cross-sectional quantitative research design is employed to analyze the role of behavioral factors, including financial confidence, risk perception, and early financial exposure, alongside structural variables, particularly income. Descriptive statistics are used to summarize demographic characteristics, investment behavior, and asset allocation patterns. A chi-square test of independence is conducted to assess the association between gender and investment participation. To identify predictors of participation, linear regression models are estimated. A baseline model examines the effect of gender on investment behavior, while an extended model incorporates financial confidence, risk-taking, risk-awareness, and income as explanatory variables. An interaction term between gender and financial confidence is also included to test for moderating effects. The results indicate a statistically significant association between gender and investment participation. Regression analysis shows that gender is significant in the baseline model; however, in the extended specification, income emerges as the only statistically significant determinant. Behavioral variables, including financial confidence and risk-related measures, are not statistically significant, and the interaction effect is also insignificant. Overall, the study provides empirical evidence on the relative importance of structural and behavioral factors in explaining variation in investment participation across gender.