Article

Perceptions of Women Investors Management and Labour Studies

42(4) 316–338
in Relation to Stock Market © 2017 XLRI Jamshedpur, School of
Business Management
& Human Resources
SAGE Publications
sagepub.in/home.nav
DOI: 10.1177/0258042X17731979
Neeraj Maini1 http://mls.sagepub.com

Abstract
Investors are the major source of providing risk capital and therefore are considered as the soul of
capital market. A package of reforms consisting of measures to liberalize, regulate and develop the
securities market to improve market efficiency, enhance transparency, prevent unfair trade practices
and bring the Indian market up to international standards has been in implementation since the 1990s.
Over the years, a number of checks have been set up to protect investors, enhance their confidence
and to avoid systematic failure of the market. As the economy is developing, the mindset of people
is also changing at a very fast pace. Over a period of time, there has been a change in the economic
status of women. Financial planning is becoming imperative for women now. The Indian capital market
also makes initiative steps to motivate women investors in stock market. This shows a gradual increase
and interest of women investors to participate in trade practices and also show their success in
the investment. No doubt India’s security market has transformed itself into a major global market
but the task is however only partly done. The woman investor is still not aware or confident of
investing opportunities in the markets. Therefore, the present study has been conducted to analyse the
perceptions of women investors regarding development and operations of stock market. The study is
based on primary data collected through the random sample of 500 women investors of Punjab and
Chandigarh spread over five major cities. The study found that majority of respondents agreed to the
perceptions formed. Results also showed that education did affect the agreement level but working
status could not alter the agreement level of women investors regarding the perceptions.

Keywords
Women investors, perceptions of women investors, working status of women investors, education
level of women investors, stock market operations and development

1
Associate Professor, P.G. Department of Commerce & Business Administration, Kanya Maha Vidyalya, Jalandhar, India.

Corresponding author:
Neeraj Maini, Associate Professor, P.G. Department of Commerce & Business Administration, Kanya Maha Vidyalya, Jalandhar,
India.
E-mail: maini.neeraj_10@yahoo.co.in
Maini 317

Introduction
The capital market is a market for long-term funds with both equity and debt and funds were raised
within and outside of the country. The history of the capital market in India dates back to the eighteenth
century when East India company securities were traded in the country. It has been a long journey for the
Indian capital market. Now the capital market is organized, fairly integrated, mature, more global and
modernized. The Indian equity market is one of the best in the world in terms of technology as well as
value-cum-volume of business. An aggregate of `13,004 billion was raised by the government and the
corporate sector in FY 2013–2014 compared with `12,109 billion in FY 2012–2013 (an increase of
7.4%). The exchanges in the country offer screen-based trading system. There were 9,411 trading mem-
bers registered with SEBI at the end of March 2014. The market capitalization has grown over the
period, indicating that more companies are using the trading platform of the stock exchange. The market
capitalization on NSE was around `74152,960 million at the end of March 2014 (Indian Securities
Market Review (ISMR), 2014). A package of reforms consisting of measures to liberalize, regulate and
develop the securities market to improve market efficiency, enhance transparency, prevent unfair trade
practices and bring the Indian market up to international standards has been in implementation since the
1990s. The securities market is regulated by various agencies, such as the Department of Economics
Affairs (DEA), the Department of Company Affairs (DCA), the Reserve Bank of India (RBI) and the
SEBI. A number of checks have been set up to protect investors, enhance their confidence and avoid
systematic failure of the market. As the economy is developing, the mindset of people is also changing
at a very fast pace. Over a period of time, there has been a change in the economic status of women.
Financial planning is becoming imperative for women now. Moreover, a woman plays a vital role at this
state of affairs in our nation. With the savings invested in various options available to the women, money
acts as the driver for growth of our country (Baskara & Ramji, 2012). The Indian capital market also
makes an initiative step to motivate women investors in stock market. This shows a gradual increase and
interest of women investors to participate in trade practices and also show their success in the invest-
ment. Investment is made an avowed objective of maximizing the wealth. No doubt India’s securities
market has transformed itself into a major global market but despite the market and regulatory reforms
already implemented, women investors still lack confidence in the market.

Review of Literature
Gupta (1991) revealed the dissatisfaction of the share owners with the standard of service and informa-
tion provided to them by the companies and stock brokers and with the mechanism for redressing their
grievances. Greco (1991) and West (1996) reported that women are often unprepared to manage finances.
They need education and want to trust and learn from their investment advisor. Robert (1994), recom-
mended for the opening up of stock exchanges for the merchants and investment bankers and other
members of financial community possessing expertise and capital adequacies. National Council of
Applied Economic Research (NCAER) and Economic and Political Weekly Research Foundation (1994)
revealed that female-headed households in urban sector have a better track record of savings than the
households headed by males. However, they found a reverse trend in rural areas where male-headed
households are more inclined to savings. Vinayakam (1994) emphasized on the task of streamlining the
activities of stock exchanges through suitable legislation to instil greater confidence in market dealings.
SCMRD (2005) revealed that the design of Indian stock market, no doubt is impressive from techno-
logical view point, but is attractive to speculators and market operators also. It is able to garner only a
318 Management and Labour Studies 42(4)

pitiable portion of the household savings as it is characterized by too much volatility and manipulations,
which are considered as the biggest worries of ordinary investors. Kumar and Raju (2006) revealed that
investors continue to suffer several difficulties from a multitude of elements involved in the capital
market, the gullibility of the investors is a major factor inviting difficulties to them. Mittal and Dhade
(2007) found that women were less risk lovers than men and hold less risky portfolio. Gupta and Jain
(2008) pointed out ‘too much volatility’, ‘too much price manipulation’, ‘unfair practices of brokers’ and
‘corporate mismanagement and frauds’ as the main worries of investors. NCAER Survey (2008) National
Council of Applied Economic Research, New Delhi and Max New York Life recommended an urgent
need for a financial literacy programme to make people understand their options and financial needs at
different life stages. Merill Lynch Investment Management (MLIM) US (2008) revealed that men prefer
more ‘glamorous’ risky investments, and women take a more secure approach to their finances. Survey
ultimately considered the women as better investors. Maini and Sharma (2009) recommended for the need
of educating the investors regarding capital market reforms. Ramanujam and Ramkumar (2011) suggested
that the women investors should take active participation in investing in different securities rather than
considering the securities, which are all more secure market investment. Deepika and Poornima (2012)
explored lack of awareness among women investors as the main hindrance preventing them from invest-
ing in stock market. Mathivanan and Mohanranjani (2012) concluded that women have actively shifted
their saving/investment avenues from traditional bank saving avenues to modern technically risky capital
market operations. Neilson and DSP Black Rock Mutual Fund (2013) found that the risk-averse nature of
women prompts them to put their money mainly in fixed-return instruments, such as bank deposits, life
insurance, gold, post office deposits and bonds. Prasad, Shollapur and Patted (2014) threw light on the
susceptibility of women investors to greed, fear, love and disbelief in their corporate investments
and concluded that these emotions block the logic and rationality of investors, affect their prospects of
generating wealth, cause financial distress and further deteriorate their emotional stability. They further
suggested that there is a need to develop emotional stability among investors.
A very few studies have been conducted on the subject and out of those conducted studies, a very few
discussed the perceptions of women investors regarding stock market operations and development,
hence this study.

Need of the Study

Over the years, Indian capital market has transformed itself into vibrant, efficient, transparent one, a
reasonably safe and secure place for savers and investors, institutions and individuals. A number of
checks have been set up to protect investors, enhance their confidence and avoid systematic failure of the
market. Now the capital market is organized, fairly integrated, mature, more global and modern. As a
result, savers and investors are not constrained by their individual abilities, but facilitated by the econo-
my’s capability to invest and save, which inevitably enhances savings and investment in the economy.
As a result of these reforms, market design has changed drastically. As the economy is developing, the
mindset of people is also changing at a very fast pace. Now the scene has changed and so has the position
of women in society. Now women are also having a strong profile in the society. She is playing a role of
not only a homemaker but also dealing with high-valued decisions including financial decisions at par
with men. But there is a common stereotype that women are more risk-averse than men. Investment
traditionally has been a man’s world. It is not that women are not permitted; it may be because of her
lack of interest in the investment matters or her lack of confidence. Cultural factors do restrain them. The
entire system of markets and investment mechanism has been developed by men; with women largely
Maini 319

remaining at the periphery of these systems. And this is the story across the country. Most working
women say that finance is the last thing on their minds. Others say that numbers only confuse them. Most
of the women have common fear of the stock market. Majority of them consider stock market investment
a sort of gambling. There is no doubt that lack of knowledge about the stock market makes them think
so. Why are women always afraid that they will make a mess and lose the money? So this study deals
with the analysis of the perceptions of women investors regarding investment in stock market particu-
larly. Hence, the first-hand information from the target sample (women investors) is more significant.
Therefore, for analysis purpose, a primary survey of women investors was conducted to reach at the
accurate outcomes.

Data Collection
This study focuses on Punjab and Chandigarh. All those women residing in the state who invest and
those who plan to invest in stock market in the near future constitute the universe of this study. Survey
method to collect primary data from the major cities of Punjab, namely, Amritsar, Jalandhar, Ludhiana,
Patiala and Chandigarh, has been used. An attempt is made to select the respondents with various socio-
economic characteristics to make the sample representative. Therefore, the primary data were mainly
collected from different working places, such as educational institutions, hospitals and business places
where the educated women work and also from the women entrepreneurs. The questionnaire was distrib-
uted to 500 investors belonging to the major five cities of Punjab and Chandigarh, that is, Amritsar,
Jalandhar, Ludhiana, Patiala and Chandigarh. In all, 472 responses were received, out of which 28 were
found to be incomplete and hence rejected. Therefore, 444 responses (88.8%) were considered for this
study and out of 444, 309 women investors were the general investors and only 135 respondents could
make investment in stock market. Therefore, this study is restricted to 135 respondents. Personal inter-
view method was used to collect the primary data and a brief explanation about the stock market and
the mode of filling the questionnaire was given to the respondents so that the respondents could give
appropriate answers. No attempt was made to influence the respondents regarding their opinions.

Statistical Techniques Used for Data Analysis

For the purpose of analysing the primary data related to the satisfaction level of women investors in regard
to capital market reforms, statistical techniques, namely, weighted average and ANOVA, have been used.
In practice, when some of the items are more important than others, in such cases, proper weightage is to
be given to various items, the weights attached to each item being proportional to the importance of the
item in the distribution and then the weighted average is calculated by dividing the weighted sum with
sum of the weights. The demographic variables of investors such as their education and working status
were perceived to be affecting the satisfaction level of women investors regarding stock market operations
and development. Therefore, to find out the effect of education and working status of the investors on their
decision-making related to stock market, one-way ANOVA has been applied.
320 Management and Labour Studies 42(4)

Results and Discussion

To start the analysis, certain statements regarding the perception of women investors in relation to stock
market operations and developments have been drawn from the review of studies and the respondents
were asked to express their level of agreement to the given 15 common practices on the five-point Likert
scale (Strongly Disagree, Disagree, Neither Agree nor Disagree, Agree and Strongly Agree) and weighted
score from 1 to 5 were assigned. Weighted average scores (WAS) along with the responses of the
respondents have been presented in Table 1.
Perceptions of women investors have also been analysed on the basis of their education and working
status.

Table 1. Perceptions of Women Investors Regarding Operations and Development of Stock Market

Strongly Neither Agree Strongly

Agreement Level Disagree Disagree Nor Disagree Agree Agree
Variables No. No. No. No. No. WAS
Stock market avenues are 5 10 15 59 46 3.97
perceived to be risky (3.70) (7.41) (11.11) (43.70) (34.07)
I am more comfortable 15 13 26 36 45 3.61
putting my money in a (11.11) (9.63) (19.26) (26.67) (33.33)
bank account than in the
stock market
Stock market involves 10 19 27 36 43 3.61
cumbersome procedure (7.41) (14.07) (20.00) (26.67) (31.85)
and formalities
Investing in stock 15 19 20 36 45 3.57
market is too difficult to (11.11) (14.07) (14.81) (26.67) (33.33)
understand
In terms of stock market 10 18 30 41 36 3.56
investment, safety is more (7.41) (13.33) (22.22) (30.37) (26.67)
important than returns
Women investors are 5 23 32 46 29 3.53
not aware of many of the (3.70) (17.04) (23.70) (34.07) (21.48)
stock market avenues
The word ‘risk’ means 14 21 25 31 44 3.52
the ‘loss’ to me and it is (10.37) (15.56) (18.52) (22.96) (32.59)
permanently associated
with stock market
Women stick with a 9 26 23 50 27 3.44
consistent investment (6.67) (19.26) (17.04) (37.04) (20.00)
strategy even if the stock
market is volatile
Financial advisers 11 25 27 41 31 3.41
pressure force investors (8.15) (18.52) (20.00) (30.37) (22.96)
to take decisions which
they were not ready to
take in relation to stock
market
Maini 321

Strongly Neither Agree Strongly

Agreement Level Disagree Disagree Nor Disagree Agree Agree
Variables No. No. No. No. No. WAS
Financial advisors make 7 28 30 43 27 3.41
people feel comfortable (5.19) (20.74) (22.22) (31.85) (20.00)
about stock market
matters
Female advisors are best 14 22 25 47 27 3.38
able to understand and (10.37) (16.30) (18.52) (34.81) (20.00)
address the needs of
female investors
Making money in stock 15 23 32 35 30 3.31
and bonds is based on (11.11) (17.04) (23.70) (25.93) (22.22)
luck
Certain congitive and 19 24 32 30 30 3.21
emotional weaknesses (14.07) (17.78) (23.70) (22.22) (22.22)
keep the women
investors away from the
stock market investment
Investing in stock market 16 21 41 34 23 3.20
is time-consuming (11.85) (15.56) (30.37) (25.19) (17.04)
Stock market investment 28 30 24 24 29 2.97
is not a women’s cup of (20.74) (22.22) (17.78) (17.78) (21.48)
tea
Source: Author’s.
Notes: Figures in parenthesis show percentage; WAS = Weighted Average Score.
Perceptions of women investors regarding stock market operations and developments have been analysed on the basis
of education and working status of women also and are depicted in the Tables 1(a) and 1(b).

1. Table 1 contains 15 statements derived from the studies reviewed. The purpose of forming these
statements is to know about the perceptions of the stock market women investors, regarding
certain practices followed in stock market. As we know, risk and profitability are co-related.
Therefore, Table1 reveals that out of 135 stock market respondents, a major chunk 77.77 per cent
(105) with WAS = 3.97 of the women respondents perceived ‘stock market avenues as risky’,
whereas 34.07 per cent of the women investors strongly agreed to it. On the other hand, only
11.11 per cent of women respondents were disagreeing to it, out of which just 3.7 per cent of
respondents strongly disagreed to it, whereas 11.11 per cent of respondents neither agreed nor
disagreed to it.
  Education-wise analysis as per Table 1(a) shows that all the respondents belonging to E1
(WAS = 3.25), E3 (WAS = 3.83), E4 (WAS = 4.16) and E5 (WAS = 4) groups of respondents
considered that ‘stock market avenues as risky’, out of which E4 (WAS = 4.16) group of respond-
ents strongly agreed to it. But E2 (WAS = 3) group of respondents were neither found to be satis-
fied nor dissatisfied. The ANOVA test applied gives significant value, which reveals that
education plays significant role in forming this observation.
  Analysis on the basis of working status as per Table 1(b) shows that all the respondents irre-
spective of their working status WS1 (WAS = 3.87), WS2 (WAS = 4.11), WS3 (WAS = 3.77) and
322 Management and Labour Studies 42(4)

Table 1(a). Perceptions of Women Investors Regarding Operations and Development of Stock Market
(Education-wise Analysis)

Education Level E1 E2 E3 E4 E5 Total

Variables WAS WAS WAS WAS WAS WAS F-Value P-Value
Stock market avenues are 3.25 3 3.83 4.16 4 3.97 2.498 0.046
perceived to be risky
I am more comfortable 4.75 4.4 3.46 3.58 4 3.61 1.439 0.225
putting my money in a bank
account than in the stock
market
Stock Market investment 2.5 3.8 3.27 3.85 4.25 3.61 2.702 0.033
involves cumbersome
procedure and formalities
Investing in stock market is 3.75 3 3.27 3.77 4 3.57 1.314 0.268
too difficult to understand
In terms of stock market 3.25 3 3.4 3.69 4 3.56 .871 0.484
investment safety is more
important than returns
Women investors are not 3 4.2 3.08 3.77 4 3.53 3.933 0.055
aware of many of the stock
market avenues
Word ‘risk’ means the 5 2.4 3.27 3.62 4.5 3.52 3.266 0.014
‘loss’ and it is permanently
associated with stock market
Women follow consistent 4.25 3.8 3.42 3.39 3.5 3.44 .596 0.666
investment strategy even if
stock market is volatile.
Financial advisers’ pressure 2.5 3 3.19 3.64 3.5 3.41 1.671 0.160
force investors to take
decisions related to stock
market which they were no
ready to take
Financial advisors make 4.75 3 3.42 3.35 3.5 3.41 1.532 0.197
people feel comfortable about
stock market matters
Female advisors are best able 3 4 3.38 3.36 3.25 3.38 .398 0.310
to understand and address
the needs of female investors
Making money is stock and 3 2.8 2.98 3.57 3.5 3.31 1.830 0.127
bonds is based on luck
Certain cognitive and 4.5 3 3.06 3.27 2.75 3.21 1.249 0.294
emotional weaknesses keep
the women investors away
from the stock market
investment
Investing in stock market is 4.5 2.6 3.02 3.26 3.75 3.2 1.934 0.109
time-consuming
Stock market investment is 4 2.6 2.79 3.07 2.75 2.97 .870 0.444
not a women’s cup of tea
Source: Author’s.
Notes: E1 = Matriculate, E2 = Undergraduate, E3 = Graduate, E4 = Post-graduate and E5 = any other.
Maini 323

Table 1(b). Perceptions of Women Investors Regarding Operations and Development of Stock Market
(Working Status-wise Analysis)

Working Status WS1 WS2 WS3 WS4 Total

Variables WAS WAS WAS WAS WAS F-Value P-Value
Stock market avenues are 3.87 4.11 3.77 3.57 3.97 1.326 0.261
perceived to be risky
I am more comfortable putting 3.75 3.71 3.28 4.29 3.61 1.653 0.180
my money in a bank account
than in the stock market
Stock Market investment 4.25 3.6 3.5 3.71 3.61 0.791 0.501
involves cumbersome
procedure and formalities
Investing in stock market is 2.88 3.7 3.27 4.57 3.57 2.916 0.037
too difficult to understand
In terms of stock market 3.75 3.74 3.02 4.29 3.56 4.272 0.007
investment safety is more
important than returns
Women investors are not 2.87 3.56 3.48 4.14 3.53 1.695 0.171
aware of many of the stock
market avenues
The word ‘risk’ means 3.25 3.68 3.1 4.43 3.52 2.883 0.038
the ‘loss’ to me and it is
permanently associated with
stock market
Women stick with a consistent 3.25 3.5 3.22 4.29 3.44 1.745 0.161
investment strategy even if the
stock market is volatile
Financial advisers’ pressure 3.62 3.5 3.07 4.14 3.41 2.007 0.116
force investors to take
decisions in which they were
not ready
Financial advisors make people 3.12 3.41 3.3 4.29 3.41 1.594 0.194
feel comfortable about stock
market matters
Female advisors are best able 3.88 3.29 3.47 3.29 3.38 0.636 0.594
to understand and address the
needs of female investors
Making money is stock and 3.38 3.4 3.05 3.71 3.31 0.897 0.444
bonds is based on luck
Cognitive and emotional 3 3.34 2.82 4.14 3.21 2.590 0.056
weaknesses keep the women
investors away from the stock
market
Investing in stock market is 3.12 3.09 3.35 3.71 3.2 0.824 0.483
time-consuming
Stock market investment is not 2.88 3.09 2.6 3.86 2.97 1.969 0.122
a women’s cup of tea
Source: Author’s.
Notes: WS1 = Entrepreneur, WS2 = Employee, WS3 = Professional and WS4 = any other.
324 Management and Labour Studies 42(4)

WS4 (WAS = 3.57) also considered ‘stock market avenues as risky’, whereas WS2 (WAS = 4.11)
group of investors strongly agreed to it. The ANOVA test applied gives insignificant value which
means that working status had no effect.
2. The SEBI has taken number of primary market and secondary market reforms since its inception,
but even then a very significant number 60 per cent (81) of the women investors with WAS 3.61
found themselves ‘comfortable in putting their money in banks than investing in stock market’,
out of which 33.33 per cent of women strongly hold this perception. Meanwhile, 20.74 per cent
of women investors expressed their disagreement with this out of which 11.11 per cent of the
respondents strongly disagreed, whereas 19.26 per cent of respondents neither agreed nor disa-
greed to it.
  As per education-wise analysis, Table 1(a) shows that all the respondents irrespective of their
education level E1 (WAS = 4.75), E2 (WAS = 4.4), E3 (WAS = 3.46), E4 (WAS = 3.58) and E5
(WAS = 4) groups of respondents feel more comfortable in putting money in a bank account than
in the stock market, whereas E1 (WAS = 4.75) and E2 (WAS = 4.4) groups of respondents
strongly support this view. The ANOVA test applied also gives insignificant value.
  Analysis on the basis of working status as per Table 1(b) shows that all the respondents irre-
spective of their working status WS1 (WAS = 3.75), WS2 (WAS = 3.71), WS3 (WAS = 3.28) and
WS4 (WAS = 4.29) also feel more comfortable in putting money in a bank account than in the
stock market, whereas WS4 (WAS = 4.29) group of investors strongly support it. The ANOVA
test applied also gives insignificant value.
  So, ANOVA test reveals that irrespective of their education and working status, women inves-
tors still hold that traditional stereotyped perception that amount deposited in bank is more
secured than invested in stock market.
3. Most of the women still have common fear of the stock market and consider its procedures as
complicated and technical. Therefore, while analysing Table 1, it was found that a very signifi-
cant number 58.52 per cent (79) of respondents with WAS 3.61 agree to the perception that ‘stock
market investment involves cumbersome procedure and formalities’, whereas out of this 31.85
per cent of respondents strongly agree to it. Whereas 21.48 per cent (29) of women investors do
not agree to it and out of it 7.41 per cent strongly disagree to it. On the other hand, a considerable
number 20 per cent (27) of women investors neither agree nor disagree to it.
  As per education-wise analysis, Table 1(a) shows that all the respondents belonging to E2
(WAS = 3.8), E3 (WAS = 3.27) and E4 (WAS = 3.85) groups hold this perception that ‘stock
market involves cumbersome procedure and formalities’, whereas E5 (WAS = 4.25) group of
respondents strongly agree to it and E1 (WAS = 2.5) group of investors neither agree nor disagree
to it. The ANOVA test applied gives significant value which reveals that education played sig-
nificant role in forming this observation.
  Analysis on the basis of working status as per Table 1(b) shows that all the respondents irre-
spective of their working status WS1 (WAS = 4.25), WS2 (WAS = 3.6),WS3 (WAS = 3.5) and
WS4 (WAS = 3.71) feel stock market procedure and formalities as cumbersome, whereas WS1
(WAS = 4.25) group of investors agree to it little bit more strongly. The ANOVA test applied also
gives insignificant value which revealed that working status did not play any role in forming this
observation.
4. Stock market is known for cumbersome procedure and formalities, therefore, again a very sig-
nificant number 60 per cent (81) of women investors with WAS 3.57 supported the perception
that ‘investing in stock market is too difficult to understand’, whereas out of this 33.33 per cent
(45) of respondents strongly supported it, whereas 25.08 per cent of respondents disagree to it
Maini 325

and out of this 11.11 per cent of respondents strongly disagree to it. A considerable number 14.81
per cent of women respondents also neither agree nor disagree to it.
  Education-wise analysis as per Table 1(a) shows that all the respondents belonging to E1 (WAS
= 3.75), E3 (WAS = 3.27), E4 (WAS = 3.77) and E5 (WAS = 4.0) group except E2 (WAS = 3) agree
that ‘investing in stock market is too difficult to understand’, whereas E2 (WAS = 3) group of
respondents neither agree nor disagree to it. The ANOVA test applied also gives insignificant
value which reveals that education did not affect the agreement level of investors.
  Analysis on the basis of working status as per Table 1(b) shows that the respondents belonging
to WS2 (WAS = 3.7) and WS3 (WAS = 3.27) groups also considered that ‘investing in stock
market is too difficult to understand’, whereas WS4 (WAS = 4.57) group of respondents strongly
agree to it. But respondents belonging to WS1 (WAS = 2.88) group neither agree nor disagree to
it. The ANOVA test applied also gives significant value which means that working status played
significant role in forming this observation.
5. ‘In terms of stock market investment safety is considered as more important than returns’. A very
significant number 57.04 per cent (77) of respondents with WAS 3.56 expressed their agreement
to it, whereas out of this 26.67 per cent of respondents strongly agree to it. But there is also a
considerable number 20.74 per cent of respondents who expressed their disagreement to it,
whereas out of which 7.41 per cent of respondents strongly disagree to it. A good chunk 22.22 per
cent of respondents neither agree nor disagree to it.
  Education-wise analysis as per Table 1(a) shows that all the respondents irrespective of their
education level E1 (WAS = 3.25), E3 (WAS = 3.4), E4 (WAS = 3.69) and E5 (WAS = 4.0) except
E2 (WAS = 3.0) considered ‘safety of investment more important than returns in stock market’,
whereas E2 (WAS = 3) group of respondents neither agree nor disagree to it. The ANOVA test
applied also gives insignificant value which shows that education did not play the role in forming
this observation.
  Analysis on the basis of working status as per Table 1(b) shows that all the respondents belong-
ing to WS1 (WAS = 3.75), WS2 (WAS = 3.74) and WS3 (WAS = 3.02) considered ‘safety of
investment as more important than returns in stock market’, whereas WS4 (WAS = 4.29) group
of respondents strongly agree to it. Regarding WS3 (WAS = 3.02) group of respondents it can
also be said that they neither agree to it nor disagree to it as they have little inclination towards
agreement. The ANOVA test applied also gives significant value which means that working sta-
tus played significant role in forming this observation.
6. Many new stock market investment instruments have been introduced by SEBI from time to
time. But 55.55 per cent (75) of women respondents with WAS 3.53 hold the perception that
‘they are not aware of many of the stock market avenues’, whereas out of it 21.48 per cent of the
respondents strongly agree to it. But on the other hand, a very considerable number 23.7 per cent
of respondents neither agree nor disagree to it. There is also a good number (20.74%) of respond-
ents who are aware of many of the stock market avenues and therefore they disagree to this per-
ception.
  As per education-wise analysis, Table 1(a) shows that respondents belonging to E3 (WAS =
3.08), E4 (WAS = 3.77) and E5 (WAS = 4) groups considered that ‘women investors are not
aware of many of the stock market avenues’, whereas E2 (WAS = 4.2) group of investors strongly
agree to it and E1 (WAS = 3.0) group of respondents neither agree nor disagree to it. The ANOVA
test applied also gives significant value which means that education plays significant role in
forming this observation.
326 Management and Labour Studies 42(4)

  Analysis on the basis of working status as per Table 1(b) shows that respondents belonging to
WS2 (WAS = 3.56) and WS3 (WAS = 3.48) considered that ‘women investors are not aware of
many of the stock market avenues’, whereas WS4 (WAS = 4.14) group of respondents strongly
agree to it and WS1 (WAS = 2.87) group of respondents neither agree to it nor disagree to it. The
ANOVA test applied also gives insignificant value which reveals that working status did not
plays significant role in forming this observation.
7. ‘Risk means loss and it is permanently associated to stock market’, a significant number 55.55
per cent (75) of respondents with WAS 3.52 expressed their agreement to it, whereas out of this
32.59 per cent of respondents strongly agree to it. But on the other hand, a considerable number
25.93 per cent of respondents disagree to it, whereas out of this 10.37 per cent of respondents
strongly disagree to it. A good number 18.52 per cent of respondents neither agree nor disagree
to it.
  Education-wise analysis as per Table 1(a) shows very different results. Respondents belonging
to E3 (WAS = 3.27) and E4 (WAS = 3.62) groups of education consider that ‘risk means loss and
it is permanently associated with stock market’, whereas respondents belonging to E1 (WAS = 5)
and E5 (WAS = 4.5) group strongly hold this perception. But E2 (WAS = 2.4) group of respond-
ents neither agree nor disagree to it. ANOVA test applied also gives significant value.
  Similar results are revealed by analysis on the basis of working status. As per Table 1(b)
respondents belonging to WS1 (WAS = 3.25), WS2 (WAS = 3.68) and WS3 (WAS = 3.1) groups
considered that ‘risk means loss and it is permanently associated with stock market’, whereas
WS4 (WAS = 4.43) group of respondents strongly agree to it. The ANOVA test applied also gives
significant value.
  It means that education and working status did play significant role in forming this observation.
8. Usually, women are considered as more risk-averse than men, therefore, a very significant chunk
57.04 per cent (77) of respondents with WAS 3.44 hold the perception that ‘women follow con-
sistent strategy even in the volatile stock market’, whereas 20 per cent of the respondents strongly
agree to it. But a very considerable number 25.93 per cent (35) of the respondents also disagree
to it, whereas a good number 17.04 per cent of respondents neither agree nor disagree to it.
  Education-wise analysis as per Table 1(a) shows that all the respondents irrespective of their
education level E2 (WAS = 3.8), E3 (WAS = 3.42), E4 (WAS = 3.39) and E5 (WAS = 3.5) except
E1 (WAS = 4.25) consider that ‘women follow consistent strategy even in the volatile stock mar-
ket’, whereas E1 (WAS = 4.25) group of respondents strongly agree to it. ANOVA test applied
also gives insignificant value.
  Working status analysis as per Table 1(b) also shows that all the respondents belonging to WS1
(WAS = 3.25), WS2 (WAS = 3.5) and WS3 (WAS = 3.22) except WS4 (WAS = 4.29) consider
that ‘women follow consistent strategy even in the volatile stock market’, whereas WS4 (WAS =
4.29) group of respondents strongly agree to it. The ANOVA test applied also gives insignificant
value.
  It reveals that education and working status did not play significant role in forming this
perception
9. Investors usually consult financial advisors to make investment in the stock market, therefore,
more than 50 per cent, that is, around 53.33 per cent (72) of respondents with WAS 3.41 hold the
perception that ‘financial advisors’ pressure force them to take decisions related to stock market
which they were not ready to take’, whereas out of this 22.96 per cent of respondents strongly
agree to it. On the other hand, a significant number 26.67 per cent of respondents disagree to it
also and out of it 8.15 per cent of respondents strongly disagree to it, which shows that this group
Maini 327

of women investors do consult financial advisers before making investment in stock market but
take their own decisions which suit to them. Again a good number 20 per cent of respondents
neither agree nor disagree to it.
  Education-wise analysis as per Table 1(a) shows that respondents belonging to E3 (WAS =
3.19), E4 (WAS = 3.64) and E5 (WAS = 3.5) groups supported this perception that ‘financial
advisors’ pressure force them to take decisions related to stock market which they were not ready
to take’, whereas E1 (WAS = 2.5) and E2 (WAS = 3.0) groups of respondents neither agree nor
disagree to that. ANOVA test applied gives insignificant value.
  Analysis as depicted by Table 1(b) on the basis of working status reveals that all the respond-
ents belonging to WS1 (WAS = 3.62), WS2 (WAS = 3.5) and WS3 (WAS = 3.07) except WS4
(WAS = 4.14) considers that ‘financial advisors’ pressure force them to take decisions related to
stock market which they were not ready to take’, whereas WS4 (WAS = 4.14) group of respond-
ents strongly agree to it. The ANOVA test applied gives insignificant value.
  It reveals that education and working status did not play significant role in forming this
perception
10. Risk-averse investors always wants to take suggestions from peers, financial expert or any share
brokers, therefore, around 50 per cent (70) of respondents with WAS 3.41 agree that ‘financial
advisors make people comfortable about stock market’, whereas 20 per cent of respondents
strongly agree to it. On the other hand, 25.93 per cent of respondents also disagree to it, whereas,
20 per cent of respondents neither agree nor disagree to it.
  Education-wise analysis as per Table 1(a) shows that the respondents belonging to E3 (WAS =
3.42), E4 (WAS = 3.35) and E5 (WAS = 3.5) groups supported the statement that ‘financial advi-
sors make people feel comfortable about stock market matters’, whereas E1 (WAS = 4.75) group
of respondents strongly agree to it. But E2 (WAS = 3.0) group neither agree nor disagree to that.
The ANOVA test applied gives insignificant value.
  Analysis as shown in Table 1(b) as per working status reveals that all the respondents belong-
ing to WS1 (WAS = 3.12), WS2 (WAS = 3.41) and WS3 (WAS = 3.3) except WS4 (WAS = 4.29)
considered that ‘financial advisors make people feel comfortable about stock market matters’,
whereas WS4 (WAS = 4.29) group of respondents strongly agree to it. The ANOVA test applied
gives insignificant value.
  It shows that education and working status did not play significant role in forming this
perception
11. As discussed above that respondents agree to the perception that financial advisors make people
feel comfortable about stock market, but there is a certain number 74 (54.81%) of respondents
with WAS 3.38 who considered that ‘female advisors are best able to understand and address the
needs of female investors’, whereas 20 per cent strongly agree to it. On the other hand, 26.67 per
cent of respondents expressed their disagreement to it, out of which 10.37 per cent strongly disa-
gree to it and 18.52 per cent of respondent neither agree nor disagree to it.
  Education-wise analysis as per Table 1(a) shows that all the respondents belonging to E2
(WAS = 4) group, E3 (WAS = 3.38) group, E4 (WAS = 3.36) group and E5 (WAS = 3.25) group
except E1 (WAS = 3.0) groups considered that ‘female advisors are best able to understand and
address the needs of female investors’, whereas E1 (WAS = 3.0) group of respondents neither
agree nor disagree to it. The ANOVA test applied gives insignificant value.
  Analysis as shown in Table 1(b) as per working status reveals that all the respondents irrespec-
tive of their working status WS1 (WAS = 3.88), WS2 (WAS = 3.29), WS3 (WAS = 3.47) and
WS4 (WAS = 3.29) considered that ‘female advisors are best able to understand and address the
needs of female investors’. The ANOVA test applied gives insignificant value.
328 Management and Labour Studies 42(4)

  It reveals that education and working status did not play significant role in forming this
perception.
12. Investing in stock market is considered as gambling, therefore, a significant number 48.15 per
cent (65) of respondents with WAS 3.31 hold the perception that ‘luck matters in making money
in stock and bonds’, whereas out of this 22.22 per cent of respondents strongly agree to it.
Investing is not a game but a serious subject that can have a major impact on investor’s future
wellbeing, therefore, a very considerable number 28.15 per cent of respondents do not believe it,
they disagree to it and out of this 11.11 per cent of respondents strongly disagree to it. But a con-
siderable number 23.7 per cent of respondents neither agree nor disagree to it.
  Education-wise analysis as per Table 1(a) shows that the respondents belonging to E1
(WAS = 3), E2 (WAS = 2.8) and E3 (WAS = 2.98) groups neither agree nor disagree to this per-
ception that ‘making money in stock and bonds is based on luck’, whereas on the other hand,
respondents belonging to E4 (WAS = 3.57) and E5 (WAS = 3.5) groups supported this statement.
The ANOVA test applied gives insignificant value.
  Analysis as shown in Table 1(b) as per working status reveals that all the respondents irrespec-
tive of their working status WS1 (WAS = 3.38), WS2 (WAS = 3.4), WS3 (WAS = 3.05) and WS4
(WAS = 3.71) groups hold the perception that ‘making money in stock and bonds is based on
luck’. The ANOVA test applied gives insignificant value.
  It reveals that education and working status did not play significant role in forming this
perception.
13. Women is also surrounded by the cultural and emotional limitations, therefore, a significant num-
ber 44.44 per cent (60) of respondents with WAS 3.21 hold the perception that ‘cognitive and
emotional weaknesses keep the women investors away from the stock market investments’,
whereas a considerable number 22.22 per cent of investors strongly agree to it. But on the other
hand, there is a considerable number of respondents 31.85 per cent who do not agree to it and out
of this 14.07 per cent of respondents strongly disagree to it which shows the aggressiveness of
today’s women. A fair number 23.7 per cent of respondents neither agree nor disagree to it.
  Education-wise analysis as per Table 1(a) shows that E3 (WAS = 3.06) and E4 (WAS = 3.27)
groups of respondents agree to the perception that ‘cognitive and emotional weaknesses keep the
women investors away from the stock market investments’, whereas E1 (WAS = 4.5) group of
investors strongly agree to it. But on the other hand, E2 (WAS = 3.0) and E5 (WAS = 2.75)
groups of respondents neither agree nor disagree to it. The ANOVA test applied gives insignifi-
cant value. It reveals that education did not play significant role in forming this perception
  Analysis as shown in Table 1(b) as per working status reveals that the respondents belonging
to WS2 (WAS = 3.34) group agree, whereas WS4 (WAS = 4.14) group of respondents strongly
agree to the perception that ‘cognitive and emotional weaknesses keep the women investors
away from the stock market investments’, but WS1 (WAS = 3.0) and WS3 (WAS = 2.82) group
of respondents neither agree nor disagree to it. The ANOVA test applied gives significant value,
which means that working status played significant role in forming this perception.
14. Around 42.23 per cent (57) of respondents with WAS 3.20 considered ‘stock market investment
as time consuming’, whereas 17.04 per cent of respondents strongly agree to it. But on the other
hand, a considerable number 27.41 per cent of respondents disagree to it, out of which 11.85 per
cent of respondents strongly disagree. A fair number 30.37 per cent of respondents neither agree
nor disagree to it.
  Education-wise analysis as per Table 1(a) shows that E3 (WAS = 3.02), E4 (WAS = 3.26)
and E5 (WAS = 3.75) groups of respondents considered ‘stock market investment as time
Maini 329

consuming’, whereas E1 (WAS = 4.5) group of investors strongly agree to it. But on the other
hand, E2 (WAS = 2.6) group of respondents neither agree nor disagree to it. The ANOVA test
applied gives insignificant value.
  Analysis as shown in Table 1(b) reveals that all the respondents irrespective of their working
status WS1 (WAS = 3.12), WS2 (WAS = 3.09), WS3 (WAS = 3.35) and WS4 (WAS = 3.71)
considered ‘stock market investment as time consuming’, ANOVA test applied gives insignifi-
cant value.
  It reveals that education and working status did not play significant role in forming this
perception.
15. Most of the women have common fear of the stock market, therefore, around 39.26 per cent of
respondents agree to the perception that ‘stock market is not a woman’s cup of tea’, whereas out
of this 21.48 per cent of respondents strongly agree to it. But other side of the analysis gives
remarkable results, accordingly a very significant number 43 per cent of the respondents disagree
to this perception, whereas out of this a very considerable number 20.74 per cent of respondents
strongly disagree to it, whereas 17.78 per cent of respondents neither agree nor disagree to it.
Analysis on the basis of weighted average score 2.97 also shows that the respondents neither
agree nor disagree to it.
  Education-wise analysis as per Table 1(a) shows that the respondents belonging to E2 (WAS =
2.6), E3 (WAS = 2.79) and E5 (WAS = 2.75) groups neither agree nor disagree to the perception
that ‘stock market is not a woman’s cup of tea’, whereas E4 (WAS = 3.07) and E1 (WAS = 4)
groups of respondents agree to it. Since there is a little bit variation in responses, therefore,
ANOVA test applied gives insignificant value. It reveals that education did not play significant
role in forming this perception.
  Analysis as shown in Table 1(b) as per working status also gives the same results. Respondents
belonging to WS1 (WAS = 2.88), WS2 (WAS = 3.09) and WS3 (WAS = 2.6) groups of respond-
ents neither agree nor disagree to the perception that ‘stock market is not a woman’s cup of tea’.
Only WS4 (WAS = 3.86) group of investors agree to it. The ANOVA test applied too gives
significant value It reveals that working status played significant role in forming this perception.

Conclusion
To conclude that all the respondents irrespective of education and working status agree to the perceptions
formed regarding the operations and development of stock market. But the respondents belonging to E1
group on education basis and WS4 group on working status basis hold the strong opinions regarding the
perceptions conceived. The ANOVA test applied also gives mostly insignificant values in relation to
education and working status of women investors.

Application of Factor Analysis

Factor analysis refers to a variety of statistical techniques, which has the common objective of represent-
ing a set of variables in terms of smaller number of hypothetical variables. It is done with the idea of
simplifying complex and diverse relationship that exist among a set of observed variables by exploring
common dimensions or factors that link together the apparently unrelated variables and consequently
provides insight into the underlying structure of the data. While the above discussion shows the broad
330 Management and Labour Studies 42(4)

Table 2. Perceptions of Investors

Variables Retained
  i) Investing in stock market is too difficult to understand
  ii) I am more comfortable putting my money in a bank account than in the stock market
  iii) The word ‘risk’ means the ‘loss’ to me and it is permanently associated with stock market
  iv) Making money is stock and bonds is based on luck
  v) In terms of stock market investment safety is more important than returns
  vi) Financial advisors make people feel comfortable about stock market matters
 vii) Women stick with a consistent investment strategy even if the stock market is volatile
viii) Investing in stock market is time-consuming
  ix) Financial advisers pressure force investors to take decisions related to stock market which they were no
ready to take
  x) Stock market investment is not a women’s cup of tea
  xi) Certain cognitive and emotional weaknesses keep the women investors away from the stock market
investment
xii) Female advisors are best able to understand and address the needs of female investors
xiii) Women investors are not aware of many of the stock market avenues
xiv) Stock market avenues are perceived to be risky
xv) Stock Market investment involves cumbersome procedure and formalities
Source: Author’s.

Table 3. KMO and Bartlett’s Test

Kaiser–Meyer–Olkin Measure of Sampling Adequacy. 0.711

Bartlett’s Test of Sphericity Approx. Chi-square 602.579
Df 105
Sig. 0.000
Source: Author’s.

picture of the satisfaction level of the respondents, the data were further analysed with the help of
factor analysis to have an exact picture of the satisfaction of the respondents. With factor analysis, a
data deduction technique has been used, which also points out the relationship between the variables.
Table 3 shows the result of two tests, which indicate that factor analysis that can be used for the given
data. Kaiser (1974) recommends accepting values greater than 0.5 as acceptable. For these data, Kaiser–
Meyer–Olkin measure of sampling adequacy is 0.711, which is greater than 0.05 and this is an indicator
of suitability of data for factor analysis. Bartlett’s test of sphericity is a test of statistics used to examine
the hypothesis that variables are uncorrelated in the population. The significance level 0.000, which is
less than 0.05, further confirms that data are suitable for factor analysis.

Results of Factor Analysis

Table 4 shows communalities’ value, that is, amount of variable that is accounted for. Initial commu-
nalities are estimates of the variance in each variable accounted for by all components/factors. Extraction
communalities are the estimates of the variance in each variable accounted for by the components.
Maini 331

Table 4. Principal Component Analysis

Communalities h2 Initial h2
i) Investing in stock market is too difficult to understand 1.000 .622
ii) I am more comfortable putting my money in a bank account than in the stock 1.000 .546
market
iii) The word ‘risk’ means the ‘loss’ to me and it is permanently associated with stock 1.000 .672
market
iv) Making money is stock and bonds is based on luck 1.000 .732
v) In terms of stock market investment safety is more important than returns 1.000 .689
vi) Financial advisors make people feel comfortable about stock market matters 1.000 .638
vii) Women stick with a consistent investment strategy even if the stock market is 1.000 .768
volatile.
viii) Investing in stock market is time-consuming 1.000 .720
ix) Financial advisers pressure force investors to take decisions related to stock 1.000 .537
market which they were no ready to take
x) Stock market investment is not a women’s cup of tea 1.000 .624
xi) Certain cognitive and emotional weaknesses keep the women investors away 1.000 .708
from the stock market investment
xii) Female advisors are best able to understand and address the needs of female 1.000 .483
investors
xiii) Women investors are not aware of many of the stock market avenues 1.000 .618
xiv) Stock market avenues are perceived to be risky 1.000 .786
xv) Stock Market investment involves cumbersome procedure and formalities 1.000 .724
Source: Extraction Method: Principal Component Analysis.

All the values of the communalities in this table are high and lie in the range of 0.483 to 0.786, which
indicates that extracted components/factors represent the variable well.
Table 5 shows the eigen values or amount of variance in original variables accounted for by each
component. The percentage column gives the ratio expressed as percentage of the total variance in
all the variables. The column of cumulative percentage gives the percentage of variable accounted
for by first 15 components/factors. The cumulative percentage of the first component is the same as
that of first percentage variable. However, the cumulative percentage of second component is the
sum total of the percentage of variance for first and second components. Cumulative percentage for
third component is the sum total of the percentage of the variance for the third component and cumu-
lative percentage of second component.
Similarly, cumulative percentage for fourth component is the sum total of the percentage of the
variance for the fourth component and cumulative percentage of third component. This process continues
in finding out the cumulative percentage of the remaining components. For the initial solution, there are
as many component/factors as there are variables, and in a correlation analysis, the sum of the eigen
values is equal to the number of components/factors.
Table 6 shows the factor loading/matrix of each variable on the five factors (extracted by use of
principal component analysis).
The next step in the process is to decide about the number of factors to be derived. The rule of
thumb is applied to choose the number of factors for which ‘Eigen values’ with greater than one is
taken using principal component analysis method. Table 6 shows the eigenvalues, of each of the five
factors (extracted by the use of principal component method). The column (per cent of variance)
332 Management and Labour Studies 42(4)

Table 5. Total Variance Explained

Component/ Initial Eigen values

Factors Total % of Variance Cumulative %
 1 4.005 26.697 26.697
 2 1.944 12.961 39.658
 3  1.538 10.256 49.914
 4 1.365 9.100 59.014
 5 1.015 6.766 65.780
 6 0.936 6.240 72.021
 7 0.826 5.504 77.525
 8 0.610 4.068 81.593
 9 0.555 3.703 85.296
10 0.501 3.340 88.636
11 0.429 2.857 91.493
12 0.400 2.670 94.163
13 0.332 2.211 96.374
14 0.298 1.989 98.363
15 0.246 1.637 100.000
Source: Extraction Method: Principal Component Analysis.

Table 6. Factor Loading/Component Matrix

Component/Factors
Variables Factor1 Factor 2 Factor 3 Factor 4 Factor 5
 1 0.771 –0.045 –0.122 –0.093 –0.047
 2 0.475 –0.309 0.093 –0.248 0.394
 3 0.794 0.109 –0.112 –0.092 –0.092
 4 0.697 –0.010 –0.057 –0.233 –0.434
 5 0.660 –0.044 –0.061 –0.483 –0.122
 6 0.178 –0.028 0.746 –0.153 0.161
 7 0.302 –0.060 0.805 0.014 –0.156
 8 0.490 0.080 –0.015 0.375 0.576
 9 0.569 0.061 –0.391 0.023 0.239
10 0.667 –0.196 –0.106 0.335 –0.132
11 0.622 –0.249 0.086 0.500 –0.033
12 –0.014 0.485 –0.141 0.413 –0.240
13 0.251 0.493 0.306 0.440 –0.152
14 0.177 0.783 0.072 –0.179 0.323
15 0.141 0.791 –0.016 –0.274 –0.052
Source: Extraction Method: Principal Component Analysis.
Note: a. 5 components extracted.

gives the ratio, expressed as a percentage of the total variance in all of the factors. Eigenvalues
greater than one can be extracted, so the first five principal components form the extracted solution.
The cumulative percentage of the first component is the same as that of percentage of variance.
However, the cumulative percentage of the second factor is the sum of percentage of the variance for
the first and second factors. This process continues in finding out the cumulative percentage of the
Maini 333

remaining components. However, component with less than eigenvalues of one is ignored and five
significant factors have been derived. The component matrix so formed is further rotated orthogo-
nally using varimax rotation algorithm. By performing factor analysis, 15 variables are reduced into
five component factors. Each component factor includes some statements which are otherwise called
variables. Each variable represents perception of investors about one particular aspect of investment
variable and statements under each factor explain the feature of such perceptual factor. The five
perceptual factors which have eigenvalue more than unity alone is taken for consideration. There are
separate tables for factor loading of each factor.
Association of each variable with the different factors extracted by applying principal component
method are shown in the Table 7 after applying varimax rotation method.
Table 8 shows the factor analysis execution with principal component extraction, which is then
rotated for the ease of interpretation (with the help of varimax rotation method and with the Kaisers
normalizations). The result of the factor analysis shows the emergence of five factors accounted for
65.780 per cent of the cumulative variance as shown in the above table. The extracted components
explain 65.780 per cent of the variability in the original 15 variables. So we can considerably reduce
the complexity of the data set using these components with only a 34.220 per cent of loss of informa-
tion. The rotated component matrix is explained in Table 9.
Following tables show the factor interpretation based on rotated component matrix that helps in
determining what component represents in a factor. This matrix shows the factor loadings ranging from
0.852 to 0.385. The variables constituting a factor have been segregated by allocating where they have
the highest factor loadings. In case, a variable comes under more than one factor, the same is allocated
to the factor where it can have been fitted on the basis of logic and reasoning. Following tables show the
factors with their nomenclature and explanation after segregation.

Naming the Factors

Five factors extracted have been given names on the basis of various variables included in each case. The
factors F1, F2, F3, F4 and F5 have been named as:

F1: Stock market investment is a game of luck.

F2: Stock market is not women-friendly.
F3: Cumbersome stock market procedures.
F4: Consistent investment strategy.
F5: Woman investor a naïve investor.

The structure of these five factors has been discussed individually in details.

I. Stock Market Investment is a Game of Luck: Most of the women have common fear of the
stock market and most of them consider stock market investment a sort of gambling. Scams,
frauds, confidence tricksters, volatile market and uncertainty make stock market a game of luck.
In total, five variables have been loaded on this factor and are arranged according to their loading
values. The variables composing this factor, with their labels and factor loadings, are given in
table below.
334 Management and Labour Studies 42(4)

Table 7. Total Extracted Variance Explained

Extraction Sums of Squared Loadings (Eigenvalues)

Factors Total % of Variance Cumulative %
1 4.005 26.697 26.697
2 1.944 12.961 39.658
3 1.538 10.256 49.914
4 1.365 9.100 59.014
5 1.015 6.766 65.780
Source: Extraction Method : Principal Component Analysis. A 5 components extracted.

Table 8. Rotated Component Loadings/Matrix

Component/Factor Loadings
Variables Factor1 Factor 2 Factor 3 Factor 4 Factor 5
 1 0.726 0.301 0.016 0.038 –0.048
 2 0.310 0.385 –0.016 0.200 –0.511
 3 0.756 0.278 0.133 0.047 0.057
 4 0.844 –0.086 –0.011 0.096 0.062
 5 0.758 –0.005 0.162 0.090 –0.283
 6 –.010 0.072 0.110 0.769 –0.171
 7 0.167 –0.016 –0.078 0.852 0.088
 8  0.082 0.837 0.093 0.059 0.035
 9 0.453 0.484 0.127 –0.277 –0.065
10 0.556 0.405 –0.329 0.027 0.208
11 0.397 0.524 –0.415 0.201 0.251
12 –0.022 0.030 0.155 –0.170 0.655
13 0.077 0.202 0.194 0.318 0.657
14 0.028 0.212 0.846 0.075 0.140
15 0.191 –0.116 0.780 –0.010 0.256
Source: Extraction Method: Principal Component Analysis.

Table 9. Total Extracted Variance Explained

Rotation Sums of Squared Loadings

Factors Total % of Variance Cumulative %
1 3.232 21.544 21.544
2 1.802 12.011 33.555
3 1.754 11.690 45.245
4 1.635 10.897 56.142
5 1.446 9.638 65.780
Source: Extraction Method: Principal Component Analysis. Rotation
Method: Varimax with Kaiser normalization.
Maini 335

Table 9(a). Factor 1: Stock Market Investment Is Game of Luck

Variables Factor Loading

1. Making money in stock and bonds is based on luck 0 .844
2. In terms of stock market investment, safety is more important than returns 0 .758
3. Word ‘risk’ means ‘loss’ and it is permanently associated with stock market 0.756
4. Investing in stock market is too difficult to understand 0.726
5. Stock market investment is not a women’s cup of tea 0 .556
Total Variance explained 3.232 (21.544%)
Sources: Data collected from Table 2 and Table 8.

The present study has revealed this with eigenvalue of 3.232. The Table 9(a) reveals that the
variable ‘making money in stock and bonds is based on luck’ has got the highest loading of 0.844.
This has been followed by the variables ‘In terms of stock market investment, safety is more
important than returns’ (0.758), closely followed by ‘word “risk” means “loss” and it is perma-
nently associated with stock market’ (0.756) followed by ‘investing in stock market is too diffi-
cult to understand’ (0.726.) and followed by ‘stock market investment is not a women’s cup of
tea’ (0.556). The loading pattern of first five variables reveals an association among the variables.
II. Stock Market is not Women Friendly: Women are working in every field. Their earning is at
par with that of their male counterparts and they enjoy both personal and professional life but in
terms of financial matters they lag behind. Despite all the changes they still rely on the advice of
others in relation to financial investments. There is a common stereotype that women are more
risk-averse than men. Safety is more important for them than return. The second important factor
representing the women investors’ perceptions has been the ‘stock market is not women friendly’.
The present study has revealed this with eigenvalue of 1.802. Four variables were loaded on this
factor and have been arranged according to their loading values. The different constituents of this
factor with their labels and loading have been presented in the Table 9(b). The table reveals that
the variable ‘Investing in stock market is time-consuming’ got the highest loading of 0.837. This
has been followed by the variable ‘Cognitive and emotional weaknesses keep the women inves-
tors away from stock market investment’ with loading 0.524, followed by ‘financial advisers’
pressure force investors to take decisions related to stock market which they were not ready to
take’ with loading 0.484 and ‘I am more comfortable in putting my money in bank than in stock
market’ with loading 0.385. This factor describes the typical nature of women investors, that is,
risk averse which keeps them away from stock market investment.

Table 9(b). Factor 2: Stock Market Is Not Women Friendly

Variables Factor Loading

1. Investing in stock market is time-consuming 0 .837
2. Cognitive and emotional weaknesses keep the women investors away from stock market 0 .524
investment
3. Financial advisers’ pressure force investors to take decisions related to stock market 0 .484
which they were not ready to take
4. I am more comfortable in putting my money in bank than in stock market 0 .385
Total Variance explained 1.802 (12.011%)
Sources: Data collected from Table 2 and Table 8.
336 Management and Labour Studies 42(4)

III. Cumbersome Stock Market Procedures: The entire system of markets and investment mecha-
nisms has been developed by men; with women largely remaining at the periphery of these sys-
tems. Most of the women have common fear of the stock market. There is no doubt that lack of
knowledge about the stock market makes them think so. In the past, women did not have any
awareness about various investment outlets. Even today, though they are known for saving for
rainy days, but they are not smart in taking investment decisions. Women are traditionally stereo-
typed as ready to take the back seat. The third important factor representing investors’ perception
has been the ‘cumbersome stock market procedures’. The present study has revealed this with
eigenvalue of 1.754. Two variables were loaded on this factor and have been arranged according
to their loading values. The different constituents of this factor with their labels and loading have
been presented in the Table 9(c). The table reveals that the variable ‘stock market avenues are
perceived to be risky’ got the highest loading of 0.846. This has been followed by the variable
‘stock market investment’ involves cumbersome procedure and formalities with loading 0.609
and ‘SEBI is effectively regulating the stock market’ with loading 0.587.

Table 9(c). Factor 3: Cumbersome Stock Market Procedures

Variables Factor Loading

1. Stock market avenues are perceived to be risky 0.846
2. Stock market investment involves cumbersome procedure and formalities 0.609
Total Variance explained 1.754 (11.690%)
Sources: Data collected from Table 2 and Table 8.

IV. Consistent Investment Strategy: There is a common stereotype that women are more risk-
averse than men. Safety is more important for them than return. The fourth important factor
representing investors’ perception has been the ‘consistent investment strategy’. The present
study has revealed this with eigenvalue of 1.635. Two variables were loaded on this factor. The
different constituents of this factor along with their labels and loading have been presented in the
Table 9(d). The table reveals that the variable ‘women stick with a consistent investment strategy
even if the stock market is volatile’ got the loading of 0.852 closely followed by the variable
‘financial advisors’ make people feel comfortable about stock market matters got a loading of
0.769.

Table 9(d). Factor 4: Consistent Investment Strategy

Variables Factor Loading

1.  Women stick with a consistent investment strategy even if the stock market is volatile 0.852
2.  Financial advisors’ make people feel comfortable about stock market matters 0.769
Total Variance explained 1.635 (10.897%)
Sources: Data collected from Table 2 and Table 8.

V. Woman Investor a Naïve Investor: Some decades back the best place for women was consid-
ered to be their home. It was thought that woman was born to take care of family and children.
Now the scene has changed and so has the position of women in society. Now women are also
having a strong profile in the society. But despite all these changes, in financial matters she still
lags behind. The last but not the least, fifth important factor representing investors’ perception
Maini 337

has been the ‘woman investor a naïve investor’. The present study has revealed this with eigen-
value of 1.446. Two variables were loaded on this factor. The different constituents of this factor
along with their labels and loading have been presented in the Table 9(e). The table reveals that
the variable ‘woman investors are not aware of many of stock market avenues’ got the loading of
0.657 closely followed by the variable ‘female advisors are best able to understand and address
the needs of female investors’ got the loading 0.655.

Table 9(e): Factor 5: Woman Investor a Naïve Investors

Variables Factor Loading

1. Woman investors are not aware of many of stock market avenues 0.657
2. Female advisors are best able to understand and address the needs of female investors 0.655
Total Variance explained 1.446 (9.638%)
Sources: Data collected from Table 2 and Table 8.

Conclusion
To sum up the above analysis, it can be concluded that, however, SEBI’s objective has been to encourage
the development of the market while protecting the interests of investors is however only partly done.
The women investor is still not aware or confident of investing opportunities in the market. She still
looks for a safer way of investing and prefers putting money in a bank than in stock market. She still
considers that stock market is not her cup of tea. There is a need to improve investor protections and
investor awareness to encourage them to look at stock market as a feasible investment option. There is a
need to improve the quality of investment advice being provided to women investors. However, enhanc-
ing investor education and financial literacy is an on-going process and required significant, continual
and focused effort. Enhanced levels of financial education are likely to lead to financially educated
consumers who will further strengthen securities market through various means.

Acknowledgement
Dr Neeraj Maini (mainis.neeraj_10@yahoo.co.in) is Associate Professor in the P.G. Department of Commerce and
Business Administration at Kanya Maha Vidyalaya, Jalandhar City. She has teaching experience of 26 years. Her
specific areas of interest include Accounting and Finance. She has worked on Minor and Major Research Projects of
UGC and contributed 15 Papers in National & International Journals.

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Websites
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2. www.capitalmarket.com
3. www.googles.com
4. www.nseindia.com
5. www.rbi.org.in
6. www.responsible gold.org
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8. www.sebi.gov.in