The Influence Variables of the Investment Tendency on the Korea and China Stock Investor
Authors:   Asia-Europe Perspective Association, Kim Eunjeong , Lee Ho 
Published: June 2018

Investment behavior in the stock market where the situation is uncertain is more complex and important decisions making behavior than other consumer purchase decisions. The understanding and protection for investor are more needed in China as well as Korea when stock investment is activated. The prediction of investor behavior is necessary in order to protect and understand the investor behavior. The identifying investment tendency for investor can laid the groundwork for molding the protection and understanding the investor behavior. Based on previous research, this paper intends to search factor affecting the tendency of Korea and China stock investors by using logistic analysis. Also, we investigate synchronization phenomena of investment behavior by comparing factors affecting the tendency of investors between Korean and Chinese investors.
For the analysis, the two types of investment tendency (risk aversion vs. risk seeking) is used as the dependent variables. Demographic variables (gender, age, income, education), investment behavior variables (total stock investment amount, the price of trading stocks per share, stock holding period, stock trading method) and psychological variable (involvement) is used as the independent variables.
The consequence of this paper are presented as follows : In the case of Korean investor, male investors show stronger risk seeking investment tendency than do female investors. The younger investors are, the lower they were educated, the higher the income level of investors is, the more expensive the price of trading stocks per share they invest, the more the total investment amount of shares, the shorter the stock holding period and the higher the involvement of equity investment, the stronger risk seeking investment tendency is showed. And in the case of Chinese inverstor, male investors show stronger risk seeking investment tendency than do female investors. The younger investors are, the lower they were educated, the more expensive the price of trading stocks per share they invest, the more the total investment amount of shares and the higher the involvement of equity investment, the stronger risk seeking investment tendency is showed. Gender, age, educational level, the price of trading stocks per share, total investment amount and involvement are identified as significant common variables that affect investor for Korean and Chinese.
In recent years, more and more savings and investment options are entering financial industry. The availability of more investment instrument with varied risk-return combination would make investors more choosy. This study is an attempt to understand the financial behavior of Korea and China stock investors in connection with the investment tendency. Managing a successful financial institution requires complete understanding of stock market and also the psyche of the individual investor. Under such a situation, it is hoped that the finding of this study will have some useful managerial implication for financial institutions in their product design and marketing and would be interest to individual investors.