Determinants of young generation investing behavioral intention in the stock market: a case in Ho Chi Minh City

Abstract

Vietnam is considered a rapidly growing emerging economy and stock market in the world. It is the 15th most populous country in the world, Vietnam has a lot of potential that needs to be realized in order to prepare for a better future, particularly for Young Generation and their participation in the stock market. To do this, it is necessary to have a study on the factors affecting the behavioral intention to participate in the stock market of Young Generation who is known as the next consumer powerhouse. In Vietnam, particularly in Ho Chi Minh City, there is almost no research on the stock market for the younger generation, so this current study will fill this academic gap. A survey was conducted from November 2022 to January 2023 in Ho Chi Minh City with a valid sample size of 346. The research model is supported by Theory of Reasoned Action (TRA), Theory of Planned Behavior (TPB), Theory of Behavioral Finance and previous studies. The research methods used include Cronbach' Alpha test, Exploratory Factor Analysis (EFA), Pearson's Correlation, Regression and Difference test. Research results show that Perceived Behavioral Control, Financial Literacy and Attitude three factors positively affect Investment Behavioral Intention in the stock market of the young generation while Perceived Risk factor has a negative impact. Although the study was limited in scope and data quality, its findings paved the way for future studies on The young stock market penetration. Further studies should expand the scope and other factors mentioned to provide a fresher perspective in the field of securities.